SAIC Offers Nearly $20 Mln To Ssangyong Motor

Shanghai, January 5, 2009: (Gasgoo.com) SAIC Motor Corp said on Monday it has provided 25.9 billion won ($19.89 million) to its struggling South Korean unit Ssangyong Motor, according to media reports.

The payment was part of funds the company has allocated to help Ssangyong develop new products, SAIC was quoted by Reuters as saying.

"We hope that this project will help Ssangyong ease some of the short-term pressure on its cash flow," SAIC said in a statement.

But Ssangyong employees are expecting the capital to be used for their delayed salaries, totaling 29 billion won, the South Korean newspaper Maeil Business reported, citing sources from the Ssangyong union.

It also said workers at Ssangyong have begun voting on a strike today to oppose the company's restructuring plan. SAIC earlier said that it would inject new funds into Ssangyong Motor only if the union accepts the plan which includes cutting more than 2,000 jobs.

Ssangyong, which is 51.33 percent owned by SAIC, saw its vehicle sales drop 52.5 percent year on year to 5,540 units.

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