Korean automaker maker Ssangyong Motor Co, which has been in receivership since January, 2009, has several suitors interested in purchasing its struggling operations, including utility vehicle builder Mahindra & Mahindra. Reuters reports that the Indian automaker plans to do its due diligence and study a purchase of the company before committing any resources.
Ssangyong Motor Co
After slipping into receivership this past January, Ssangyong Motor Company's problems have only escalated. A court-ordered restructuring of the Korean automaker earlier this year left 976 employees without work. The displaced workers organized an armed sit-in on the Korean automaker on May 21 that has now turned violent.
Could it be too late for Ssangyong? Shanghai Automotive Industry Corp. (SAIC) appears to have given up on Ssangyong Motor Co., allowing the company to slip into receivership. SAIC holds a 51% stake in Ssangyong, but gave up management rights in a bid to avoid liquidation and allow Ssangyong some time to get back in the black. The Korean automaker's Chief Executive Zhang Hai Tao and President Choi Hyung-tak both stepped down after the filing.