China Watch : SAIC may help VW to buy SsangYong Motor

George Gao, Gasgoo.com, 23rd September, 2009

Volkswagen AG is planning to acquire the cash-strapped South Korean automaker SsangYong Motor, with the help of its Chinese partner, SAIC Motor, SinoCast reported today.

SAIC Motor, the former majority shareholder of SsangYong Motor, has cooperated with Volkswagen for more than 20 years through the joint venture Shanghai VW, so the Chinese company expects to retain its holdings in SsangYong via the cooperation with its German partner.

The Volkswagen Supervisory Board Chairman Ferdinand K. Piech said last week that his company was considering acquisition of two auto brands to add to its existing ten. German truck producer MAN SE is supposed to be one of the targets and the other is likely to be located in Asia.

Analysts believed that Volkswagen could acquire SsangYong to add a production capacity of 250,000 units at low costs and use the cutting-edge electric car battery technologies in South Korea.

SsangYong Motor has recently submitted to a  turnaround plan to the Bankruptcy Court in which the company that suggests cutting the stake of its biggest shareholder, SAIC Motor, to 11.2% from the current 51%.

[Source: Gasgoo.com]

Clive Goldthorp

About the Author:

Clive claims that his interest in the BMC>MG story dates back to his childhood in the 1960s when the family’s garage premises were leased to a tenant with an Austin agency. However, back in the 1920s and 1930s, his grandmother was one of the country’s first female Garage Proprietors so cars probably run in his genes! Admits to affairs with Alfa Romeos, but has more recently owned an 06/06 MG TF 135 and then a 15/64 MG3 Style… Clive, who was AROnline’s News Editor for nearly four years, stood down from that role in order to devote more time to various Motor Racing projects but still contributes articles on as regular basis as his other commitments permit.

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