By Park Jin-hai
Regional civic groups in Busan have launched a campaign to support Renault Samsung Motors which is based in the nation’s largest port city.
A total of 146 civic groups, led by the Citizens’ Alliance for Pusan Economy and Korea Sobija, have united for a “Ride Renault Samsung Motors” campaign to help boost sales for the company.
They will take part in a campaign through coordinated through regional communities such as alumni associations, the Lions Club and the Rotary Club.
“It was Busan citizens who saved the moribund automaker in the past. By loving the home-based automaker, we would like to help it contribute more to the regional economy,” said Park In-ho, head of the Citizens' Alliance for Pusan Economy.
Those organizations have sent e-mails to some 1,000 people, titled “Let’s love and take care of Renault Samsung Motors.”
Renault Samsung is the nation’s fifth largest automaker and has a market share of 5 percent.
Its local sales fell by more than 40 percent in 2012 to 59,926 vehicles from 109,221 in 2011. Last year, its sales were up 0.2 percent at 60,027. As of September this year, it has sold 53,712 locally.
In 2013, its exports dropped 24.8 percent to 70,983. SM3 and QM5, which took the most of the exports, dropped 47.3 percent and 11.4 percent, respectively.
However, with new cars such as the SM5 D, a diesel vehicle, and the large-size SM7 Nova sedan, as well as Busan plant’s exports of Nissan Rogue SUV, the company cautiously expects its sales to exceed 80,000 by the end of this year.
It has recently reinstated extra work at the Busan plant in order to meet growing demand, which has been stopped since November last year.
There is speculation that Busan plant’s role within the Renault group will further decrease, after Renualt-Nissan recently announced it will invest in the Chinese market.
However, some analysts say that remains to be seen.
“Currently, Busan factory’s export volume to China is small and Chinese plant’s export volume also remains small. Thus the automaker’s Chinese market expansion will have a minimal impact on its Busan plant,” said Shin Chung-kwan, an analyst at KB Investment and Securities.