WORLD> Asia-Pacific
|
WORLD> Asia-Pacific
|
|
Ssangyong Motor files for bankruptcy
(Agencies)
Updated: 2009-01-09 21:13 SAIC, which took over Ssangyong in 2004 and owns 51.33 percent in the company, had no immediate comment. Nor did state-run Korea Development Bank, Ssangyong's biggest creditor. Ssangyong said that the nine-member board has come up with a number of measures to cut costs such as seeking voluntary retirement, wage reductions and other measures. "The board expects such measures to improve the financial structure of the company," the statement said. Ssangyong, which has annual production capacity of 200,000 vehicles and 7,100 employees, posted a net loss of 98.1 billion won ($74.1 million) in the first nine months of last year amid weakening domestic demand for SUVs - the company's mainstay vehicles. Ssangyong also produces the Chairman luxury sedan. Ssangyong sold a total of 92,665 vehicles last year, the majority exported to Europe, China and other countries, according to Choi, the company spokesman. He said Ssangyong does not export to the United States. Sales fell almost 30 percent from the year before. The decision comes as the South Korean company's labor union, which is opposed to restructuring efforts, voted earlier this week on a strike motion and was awaiting the outcome of the board meeting before deciding whether to count the ballots. Union officials could not immediately be reached for comment. Recent news reports have said Ssangyong plans to slash more than 3,000 jobs, including half of some 5,200 assembly line workers. SAIC, one of China's biggest automakers, is trying to establish its own brand name and bought rights to several Rover sedans, which it now makes under its own name. Its foray into South Korea, however, has been difficult as tensions with Ssangyong's labor union have plagued the takeover, including a seven-week strike in 2006.
|
