Seoul: The South Korean carmaker are compelled to cut output due to shortage of parts from Japan.The South Korean unit of French automaker Renault said it would cut output by about 20 percent next month due to a shortage of parts from quake-hit Japan.
Renault Samsung Motors had earlier suspended overtime after the devastating March 11 earthquake and tsunami halted operations of its Japanese suppliers.
“Following the temporary halt of extra work from March 18, the company plans to reduce its vehicle output by about 20 percent for one month from the start of April,” Renault Samsung said in a statement.
“The output will be re-adjusted depending on the resumption of deliveries of parts.”
The company has a strategic alliance with Japan’s Nissan Motor.
Renault Samsung did not give a figure for lost production. Last year it produced 275,267 vehicles at its Busan plant, which has an annual capacity of 300,000.
Other South Korean manufacturers have not so far reported major problems with disrupted Japanese supply lines.