Business As Usual For Ssangyong

FLEET, United Kingdom – February 9, 2009: A South Korean court last Friday granted ‘court receivership’ status to SsangYong Motor (SYMC), paving the way for radical restructuring and the opportunity of forging a stronger and leaner company with a more diversified product range.

Court receivership is similar to US Chapter 11 status, giving SYMC protection from creditors and time to formulate and implement a corporate resuscitation plan. Under the new arrangements, the court has appointed former Hyundai Motor president Lee Yoo-il, and SYMC vice-president in charge of finance, Park Young-tae as co-legal administrators.

Like a huge number of UK businesses, companies around the world have had to deal with the fall-out of the international credit crunch, a drop in demand and even higher oil and energy prices. These factors have had a particularly damaging impact on automotive companies everywhere and the decision follows SYMC’s application for court receivership last month. SYMC will now present its restructuring plan by June this year.

The court’s decision was welcomed by around 7,200 SYMC employees and creditors, led by state-run Korea Development Bank. Paul Williams, managing director of UK distributor Koelliker UK Ltd. said:

“This is very good news after a worrying period, and I want to thank our staff and dealers for their faith and confidence in toughing it out and getting on with the job. Restructuring won’t be easy, but we now look forward to the continuing new model development programme and a fitter and stronger SsangYong, better able to meet the challenges of tomorrow.”

He added: “SYMC was profitable in 2007, and as we gradually work our way out of this global recession, there’s every reason to look forward to a better future.”

In the UK, the SsangYong range comprises the Kyron, Rexton and Rodius passenger cars plus light commercial versions of the Kyron and Rexton. Prices start at only £14,259 and all SsangYongs have a three year/60,000 mile warranty. Costs of ownership were slashed last year with the introduction of very competitive menu servicing and an average 40 per cent reduction in parts prices. For your nearest dealer, call 0845 456 4056 or go to www.ssangyonggb.co.uk.