4700 employees could be affected by the voluntary separation plan announced Friday by Renault Samsung Motors, South Korean subsidiary of Renault, which corresponds to a reduction of almost 80% of its workforce. The only employees safe from this retirement plan are the 1,000 people employed in research, development and design.
A spokesman for the French automotive manufacturer said a “bonus of up to two years’ salary based on seniority” would be offered to employees willing to leave the company. Sales of Renault Samsung Motors, which equipment includes four models in South Korea, fell 33% in the first half of 2012 compared to the first six months of 2011. The plant in Busan (South) is currently idle, operating less than two thirds of its production capacity. The Renault-Nissan had announced in late July a budget of $160 million to assemble a 4×4 Nissan in Busan in 2014 and boost its South Korean subsidiary.