Exports of XM3 SUV to Europe to Start
Dominic Signora, president of Renault Samsung Motors, said on Nov. 11 that amicable labor-management relations must be maintained in order to secure contract production of cars for exports. He emphasized labor-management harmony as the hard-line head of the company’s labor union began his second term before the company starts exporting the compact sport utility vehicle (SUV) XM3 to Europe.
"We hope that the labor union understands the difficulties of the overall auto industry and cooperates with the management in wage negotiations," said Signora at a new QM6 test-drive event. "Renault Samsung strongly wants to stay in the Korean market. An amicable labor-management relationship holds the key to Renault Samsung’s continued stay in Korea. We are also discussing this matter with Renault Group.”
Renault Samsung was driven to a "work cliff" when contract production of the Nissan Rogue ended in March in 2020. In October, the company managed to avoid a crisis by winning a contract on producing the XM3 to be exported to Europe, but a labor strike has emerged as a variable.
The labor union is demanding a 70,000 won increase in basic salary and a lump sum payment of seven million won. "As the unit price of production at the Busan plant already eclipses those of other global plants, we may not secure export volume unless we secure desired price competitiveness," a Renault Samsung official said.