Go to Contents Go to Navigation

Renault Samsung bets on SUV models to revive sales in S. Korea

All News 13:10 November 11, 2020

By Choi Kyong-ae

GAPYEONG, South Korea, Nov. 11 (Yonhap) -- Renault Samsung Motors Corp., the South Korean unit of Renault S.A., will focus on promoting SUV models to revive sales amid the coronavirus pandemic, the company's country manager said Wednesday.

Renault Samsung has suffered a sharp decline in sales this year in Asia's fourth-biggest economy due to lack of new models and the COVID-19 pandemic's impact on production and sales.

"We don't really know about the market because of the coronavirus, but the QM6 SUV and the XM3 SUV (set to be exported to Europe next year) will help boost sales (in South Korea), though Europe is in a very shaky situation for now," Renault Samsung Chief Executive Dominique Signora told Yonhap News Agency.

Renault Samsung launched the upgraded QM6 SUV in the domestic market last week and plans to start exporting the XM3 SUV to European markets sometime next year.

Renault Samsung CEO Dominique Signora answers questions from reporters during the QM6 media test-drive event held in Gapyeong, just northeast of Seoul, on Nov. 11, 2020. (Yonhap)

Renault Samsung suspended the operation of its sole plant in Busan, 450 kilometers southeast of Seoul, from Nov. 2-3 to control its inventory as the virus continues to drive down sales.

The Busan plant was shut down from Sept. 25 to Oct. 18 due to the same reasons.

The company also demanded its employees at the plant work during the daytime from Nov. 10-30.

The company said it will conduct more upgrade and maintenance work at the plant's production facility ahead of the manufacturing of the XM3 SUV.

The XM3 comes with either a gasoline hybrid engine or a 1.3-liter gasoline direct-injection turbo engine.

From January to October, its sales plunged 32 percent to 99,077 autos from 144,736 in the same period of last year.

The company's current passenger car lineup includes the all-electric SM3 Z.E. sedan, the SM6 sedan, the XM3 SUV and the QM6 SUV.

Meanwhile, the company and its labor union have yet to sign a wage and collective agreement deal for 2020.

"The company wants to have a smooth negotiation with the union and seeks smooth understanding for the benefit of all," Signora said.

Renault holds an 81 percent stake in Renault Samsung.

This file photo provided by Renault Samsung Motors shows the upgraded QM6 SUV. (PHOTO NOT FOR SALE)(Yonhap)


Send Feedback
How can we improve?
Thanks for your feedback!