Ssangyong gets bailout from SAIC

Filed under: China, Hirings/Firings/Layoffs, Earnings/Financials

It may not be the entire 320 billion won that its largest creditor was looking for, but Shanghai Automotive Industries Corp's recent announcement that it would prop Ssangyong up with an investment of 25.9 billion won ($19.89 million) should do the trick. SAIC says the money is to facilitate the development of new products, but we'd guess that paying the Korean automaker's employees for their services will probably take top priority. According to the unionized workers for Ssangyong, which is Korea's fifth-largest automaker, a total of 29 billion won is owed to employees.

The union and SAIC appear to be posturing back and forth on how to proceed from here. Ssangyong's Chinese owners want to cut a total of 2,000 jobs from the Korean automaker before investing any further money and the union is expected to vote on this new plan, which is widely expected to fail. After reporting a staggering sales drop of over 50% last year, though, something's got to give.

[Source: Gasgoo]

Ssangyong gets bailout from SAIC originally appeared on Autoblog on Tue, 06 Jan 2009 08:57:00 EST. Please see our terms for use of feeds.

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