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The normal build process is using pure java svn client, the release plugin needs an installed native svn client.
During release maven is using svn command in order to verify if there are local modifications before starting the release. If the 'svn' is not installed and added correctly to the PATH that is used by Hudson, you will get this error message.
Solution:
Check the PATH of the machine where the release is being executed. Try to execute 'svn' in order to verify that it is properly installed.