Renault Samsung Curtails December Production

Renault Samsung shuts down its production operations in Busan, South Korea, for 10 working days this month because of sluggish domestic sales and a sudden drop in exports.

The auto maker says in a statement the industrywide domestic slowdown and a November decline in exports left it with too great an inventory, which needed correction.

A spokesman tells WardsAutoRenault Samsung plans to resume normal operations after the New Year holiday period, but provides no specifics.

The auto maker’s entire output comes from its vehicle and engine complex in Busan, which has an annual production capacity of 300,000 units.

Through November, Renault Samsung says its total global sales were down 4.9% to 231,208 units.

Domestic deliveries for the year’s first 11 months dropped 29.6% to 100,395 units, while November deliveries dropped 35.1% year-over-year to 7,759.

Exports through November totaled 130,813 units, up 30.2%. But export deliveries last month tumbled 24.2% to 9,509 last month.