Renault Samsung President: "Respect for Colleagues Who Chose Voluntary Retirement... Completing the Survival Plan"

Enhancing Domestic Market Value and Securing XM3 Competitiveness for European Exports

[Image source=Yonhap News]

[Asia Economy Reporter Yu Je-hoon] Dominic Signora, President of Renault Samsung Motors, recently expressed his gratitude to employees who chose voluntary retirement and urged efforts to complete the 'Survival Plan.'

According to industry sources on the 3rd, President Signora stated in his March CEO message posted on the company bulletin board the day before, "Many colleagues have chosen sacrifice for the sustainable future of the company, and I sincerely respect them." Renault Samsung had accepted voluntary retirement applications from all employees until the 26th of last month, following a forecasted return to deficit last year after eight years.

President Signora then emphasized the completion of the Survival Plan. The Survival Plan is Renault Samsung's emergency plan, which includes enhancing value in the domestic market, securing competitiveness for the European export model New Arkana (XM3), and restructuring.

Signora said, "From now on, we must focus on our business, do our utmost to improve domestic sales performance, reduce production costs of the European export model, and complete the Survival Plan," adding, "This is an inevitable measure to ensure that Renault Samsung never faces the unfortunate situation that other competitors are currently experiencing."

He also announced organizational restructuring for the Survival Plan. President Signora said, "We will continue to reorganize the organization until we are ready to overcome the challenges the company faces on our own," and added, "Each division is currently working on a new organizational restructuring."

Signora also revealed his intention to improve profitability to enhance value in the domestic market. Renault Samsung sold about 3,500 units in January and 3,900 units in February in the domestic market. He said, "We must improve all sales activities with a focus on profitability, continuously generate a marginal profit of over 15%, and reach the break-even point in 2022," and urged, "All employees should do their best in their respective positions to contribute to improving sales performance after March."

Regarding securing competitiveness for the XM3, he said, "Jose Vicente de los Mozos, Vice Chairman of Renault Group, visited Busan last week and reiterated the need to achieve three goals: top quality, production cost reduction, and production stability," adding, "To this end, all divisions are making efforts to exceed conventional quality indicators, and we have also requested active support from our partners. Now, what remains is our own painstaking efforts to reduce manufacturing costs and secure production stability."