8.5SAIC stake in Ssangyong may come to nothing

SAIC stake in Ssangyong may come to nothing

 

http://autonews.gasgoo.com/auto-news/1011619/SAIC-stake-in-Ssangyong-may-com
e-to-nothing.html

 

Shanghai, August 5 (Gasgoo.com) Chinese auto giant SAIC Motor may see its
51% stake in Ssangyong Motor come to nothing, if the Korean carmaker really
goes to bankruptcy, media reported. 

 

Since July 30, 2009, Ssangyong Motor's labor union has repeatedly asked the
company to re-employ 600 fired workers, who are members of the union. But
the Korean automaker's management rejected the requirements, in line with
its job cut plan. 

 

About 600 laid-off workers have occupied Ssangyong Motor's coating workshop
for more than 70 days, halting production lines. The company has lost
production of 14,590 vehicles worth 316 billion won ($259 million) because
of the jobless workers' occupation.

 

South Korean police in full riot gear descended on autoworkers at embattled
Ssangyong Motor on Wednesday in an operation to break up a sit-in by
unionists demanding to keep their jobs. But the local police failed to
release the tension.

 

Ssangyong Motor's spokesman said on Aug. 3 that if the dismissed workers
kept interrupting the company's production, it would seek liquidation,
rather than meet a Sept. 15 deadline set by a bankruptcy court to submit a
turnaround plan.

 

However, SAIC Motor has provided about 3 billion yuan ($439 mln) for asset
impairment, according to its first quarter financial report. SAIC has lost
management control of Ssangyong since the Korean SUV maker entered
receivership in February. 

 

Cash-strapped Ssangyong, S. Korea's smallest automaker 51% owned by China's
top automaker SAIC Motor, had been pushing to cut more than a third of its
workforce of 2,600 in a bid to resuscitate the company.

 

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