Just after SAIC provided some cash to keep Ssangyong operating a while longer, the company's board decided to go ahead and file for court receivership in South Korea. Under the rules there, the court has thirty days to decide if the company has what it takes to survive as a going concern. If the application is approved, a receiver will be appointed to run the company while it is restructured. If rejected, the company will likely be shutdown, because SAIC looks unlikely to continue throwing good money after bad.

Since Ssangyong has never exported its vehicles to the US market (an event which might have caused people to pine for the of more attractive vehicles around, like the Pontiac Aztec) this may not seem like it has any relevance here. However, Ssangyong is the source of the rolling chassis which were to be used for the Phoenix Motorcars SUT and SUV. We've been trying to contact Phoenix for a comment on the situation but company reps have not yet responded. We'll let you know if they do. In the meantime, if Ssangyong goes belly up, could be the coup de grace for Phoenix as well.

[Sources: MarketWatch, ChinaDaily]

Share This Photo X