Renault Samsung Motors and POSCO steel ink deal to produce next ROGUE SUV.

WorldWide Tech & Science. Francisco De Jesùs.

 

Renault Samsung Motors and POSCO steel ink deal to produce next ROGUE SUV.

Renault Samsung Motors, the Korean unit of French automaker Renault SA, said Friday it has signed an agreement with steel giant POSCO to step up cooperation in producing the popular sports utility vehicle Rogue at its local plant.

Under the memorandum of understanding, POSCO will provide Renault Samsung with steel plates to be used for Nissan’s next generation Rogue SUV at its factory in Busan, said the carmaker.

POSCO will also participate in Renault Samsung’s Rogue production project from the beginning in order to produce quality equipment fit for the vehicle as part of the early vendor involvement program, the company added.

“The two companies have established a foothold for the steady partnership,” said Renault Samsung in a statement.

“We are seeking further business cooperation with other companies to produce the Rogue.” Renault Group has decided to share its South Korean unit’s production line with Nissan, with the next generation Rogue model to be produced from October 2014. The Nissan vehicle will be shipped to North America instead of selling in South Korea, according to Renault Samsung.

South Korea’s fourth-largest carmaker has suffered a sharp drop in sales for months, with 116,606 vehicles sold in the first nine months of the year, down 39.7 percent from a year earlier.

It also accepted voluntary retirement from 800 workers last month in a bid to cut labor costs.