• Jan 6, 2009
It may not be the entire 320 billion won that its largest creditor was looking for, but Shanghai Automotive Industries Corp's recent announcement that it would prop Ssangyong up with an investment of 25.9 billion won ($19.89 million) should do the trick. SAIC says the money is to facilitate the development of new products, but we'd guess that paying the Korean automaker's employees for their services will probably take top priority. According to the unionized workers for Ssangyong, which is Korea's fifth-largest automaker, a total of 29 billion won is owed to employees.
The union and SAIC appear to be posturing back and forth on how to proceed from here. Ssangyong's Chinese owners want to cut a total of 2,000 jobs from the Korean automaker before investing any further money and the union is expected to vote on this new plan, which is widely expected to fail. After reporting a staggering sales drop of over 50% last year, though, something's got to give.

[Source: Gasgoo]


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    • 1 Second Ago
  • 8 Comments
      • 6 Years Ago
      imoore :
      How ignorant or arrogant you are! The trouble of Ssangyong is quite the same as GM: the union , SUVs with high fuel consumption, and worldwide financial crash.SAIC drop in the same situation as American investors who hold GM stocks. SAIC's partners such as VW provide far more advanced technologies, so why Ssangyong? Stripping SSangyong technologies? It's a joke! Perhaps some Koreans use it to hide their failure, just as some Americans. Sorry.
        • 6 Years Ago
        Many Chinese auto manufacturers have joint-ventures w/ more advanced auto-makers (GM, Ford, VW, Honda, Hyundai, Toyota, etc.), but that doesn't mean that the Chinese auto makers in the JVs now have the most advanced technological know-how or maybe more importantly, the top manufacturing techniques to ensure quality and efficiency.
        • 6 Years Ago
        Ignorant/arrogant because I know what I'm talking about? If so, then I wear that label proudly.
        • 6 Years Ago
        Please explain how this is the employees fault.
      • 6 Years Ago
      It's about time they stepped up.
      • 6 Years Ago
      SAIC could have used Ssangyong to get access to the restricted South Korean car market which is a big market on its own. Similar to GM using Daewoo to sell cars in Korea.

      Either SAIC a) could not get the plan right, or b) Ssangyong is not a popular brand in Korea so why invest in a brand no one wants, or c) Korea is easing on imports restrictions so SAIC can export directly from China, so no need for Ssangyong.