The South Korean unit of Renault SA has suffered a sharp decline in sales due to lack of new models and the pandemic’s impact on production and sales.

The company plans to cut the number of executives by 40 pc to 30 and pay by 20 pc starting in January, a spokesman said over the phone. It reportedly may consider offering a voluntary retirement program to employees.

Renault Samsung reported an operating loss for the first time in eight years last year as its sales fell 35 per cent to 116,166 vehicles from 177,450 units a year earlier.

Its domestic sales rose 11 pc to 95,939 units from 86,859 during the same period, but exports plunged 78 pc to 20,227 autos from 90,591. That’s mainly because the company stopped production of the Nissan Rogue SUV at the Busan plant in March last year. Moreover, it suspended the operation of its sole plant in Busan, 450 km southeast of Seoul, during Sept 25-Oct 18, several days in November and December to control its inventory. It expects the planned exports of the XM3 SUV to Europe this year will help improve its lacklustre sales.