BUENOS AIRES, Argentina - The Argentine unit of Renault said on Friday it had suspended for a week an unspecified number of factory workers as demand dives amid a chaotic recession in Argentina.
In a move Renault and other automakers have adopted in recent months in one of the sectors worst hit by the four-year slump, Renault Argentina said the suspension would run from July 25 to Aug. 2.
"The decision aims to match production levels to the scarce demand in the market," Renault Argentina said in a letter to the Buenos Aires Stock Exchange.
A Renault spokesman was not immediately available to comment on the number of workers affected by the measure.
Argentine auto production dived 46 percent in June compared to the same month a year ago, as the national economy tumbled into chaos following a currency devaluation, which has slashed the peso's value by 70 percent.
Despite the competitive advantage gained by the devaluation, Argentine auto exports also tumbled 52.3 percent in June compared to the same period a year ago.