China Watch : SsangYong Motor seeks aid from SAIC Motor
Song Jung-a in Seoul, Financial Times, 4th December, 2008
Faced with the acute credit crunch, SsangYong Motor said it asked its Chinese parent to provide financial support for the development of new vehicles. SsangYong, in which China’s SAIC Motor owns a 51.3 per cent stake, is in desperate need of cash as it faces 150bn won ($102m) of convertible bonds maturing in April next year.
SsangYong is considering temporarily closing its two Korean plants this month due to low demand. The company said it will freeze new hiring and cut welfare benefits for its workers. SsangYong suffered a 98.1bn won net loss in the first nine months of this year.
[Source: Financial Times]