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]

Clive Goldthorp

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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