Renault isn’t doing so great in Europe, and nor are their South Korean joint venture, Renault-Samsung Motors. The situation is so bad that they have been forced to take drastic measures, in order to keep things profitable, and so, a workforce cut of 15% through a voluntary retirement scheme will be set in motion.
Official sources claim that some 800 of the total 5,500 employees will leave the company this Friday, being compensated with up to two years-worth of paychecks, depending on their years of service. This move is in direct correlation with a drop in July sales of 34%, when compared to the same figure of 2011, due in no small part to the relentless power of the Hyundai-Kia group which has been dominating the local market for a good few years now.
However, as a company spokesman stated: "The programme is now completed, and our company is not planning additional job cuts.” - this means that the 800 employees forced to retire will only be joined by others. We say that, in South Korea at least, the might of Hyundai and Kia is too much to bear for Renault, and this move may be just the start of something much bigger.
Story via motoring.asiaone.com
However, as a company spokesman stated: "The programme is now completed, and our company is not planning additional job cuts.” - this means that the 800 employees forced to retire will only be joined by others. We say that, in South Korea at least, the might of Hyundai and Kia is too much to bear for Renault, and this move may be just the start of something much bigger.
Story via motoring.asiaone.com