Renault to stall production at S. Korean unit due to China supply chain disruption

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Renault to stall production at S. Korean unit due to China supply chain disruption

On Friday, the 7th of February 2020, the French automotive industry giant Renault SA, in which the French Government holds a 15 per cent stake, said in a statement that the carmaker’s South Korean subsidiary, RSM, was going to halt production at its Busan site for at least four days from February 11th due to a potential supply chain disruption stemmed off China’s coronavirus outbreak, remarking the latest carmaker outside China to stall its production due to the fast-spreading epidemic that infected more than 32,000 people in two weeks.

Meanwhile, referring to Busan plant’s geographical location that made it more vulnerable to China’s supply chain disruption, a Renault spokeswoman said on late on Friday (February 7th), “Because of its geographical proximity, the Busan plant is the site that is most exposed to supply disruptions in China,” adding that the French carmaker alongside Nissan Motor Corp., its Japanese alliance partner, in which Renault SA holds 43.4 per cent voting stakes, had been working should-to-should to find another way to keep S.

Korea’s Busan plant operating which used to produce Nissan Rogue SUVs. In point of fact, Renault’s latest comment came forth a day after the S. Korea’s homegrown carmaker Hyundai had halted productions at its South Korean plants due to supply chain disruptions meaded of China’s Wuhan coronavirus.

Adding further stains in to the global automobile industry, the London-based FCA cautioned on Thursday (February 6th) that supply disruptions because of the deadly virus outbreak could stall productions at one of its European plants over the coming weeks.