Renault to halt output at South Korean unit due to China supply disruptions

FILE PHOTO: The logo of French car manufacturer Renault at a dealership in Bordeaux, France, June 12, 2019. REUTERS/Regis Duvignau/File Photo

PARIS (Reuters) – French carmaker Renault (RENA.PA) said on Friday its South Korean subsidiary RSM would suspend production at its Busan site for four days from Feb. 11 due to supply chain disruptions in China, where a virus epidemic has hit industrial activity.

“Because of its geographical proximity, the Busan plant is the site that is most exposed to supply disruptions in China,” a Renault spokeswoman told Reuters.

She said Renault and its alliance partner Nissan (7201.T) were working closely on the supply disruptions as the Busan unit produces the Nissan Rogue SUV.

Renault extended on Monday the shutdown at its factory in China’s Wuhan until Feb. 13, in line with the Chinese government’s guidance following the coronavirus outbreak.

Fiat Chrysler (FCHA.MI) (FCAU.N) warned on Thursday that supply disruptions due to the deadly virus outbreak could threaten production at one of its European plants within two to four weeks.

Reporting by Gilles Guillaume; Writing by Matthieu Protard; Editing by Louise Heavens and Mark Potter


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