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SAIC offers lifeline to unit
Source: Agencies |
January 6, 2009, Tuesday
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Print Edition
Print Edition
SOUTH Korea's Ssangyong Motor Co yesterday said it had received US$45 million from its Chinese parent, Shanghai Automotive Industry Corp, as the ailing auto maker struggles to fend off a possible liquidity problem.
The company is also facing the threat of a strike from unionized workers, who began voting yesterday whether to walk off the job if management demands massive job cuts as part of a restructuring.
News reports have said the car maker ?? in which SAIC has a controlling 51-percent stake ?? plans to slash more than 3,000 jobs, including half of some 5,200 assembly line workers.
Though the company denies those reports, the union says it is apparent that such plans are in the works.
Amid the labor troubles, Ssangyong said in a statement that SAIC completed payment of US$45 million late last month to help the auto maker develop new products and improve its cash flow.
"This showed SAIC's resolve to (help) Ssangyong's survival," the statement said.
Ssangyong said it will hold a board meeting on Thursday to address the company's financial problems.
Ssangyong, South Korea's fifth-largest auto maker, is far smaller than domestic industry leaders Hyundai Motor Co and Kia Motors Corp but with the global auto industry in a perilous state, its fate is being closely watched.
The company is also facing the threat of a strike from unionized workers, who began voting yesterday whether to walk off the job if management demands massive job cuts as part of a restructuring.
News reports have said the car maker ?? in which SAIC has a controlling 51-percent stake ?? plans to slash more than 3,000 jobs, including half of some 5,200 assembly line workers.
Though the company denies those reports, the union says it is apparent that such plans are in the works.
Amid the labor troubles, Ssangyong said in a statement that SAIC completed payment of US$45 million late last month to help the auto maker develop new products and improve its cash flow.
"This showed SAIC's resolve to (help) Ssangyong's survival," the statement said.
Ssangyong said it will hold a board meeting on Thursday to address the company's financial problems.
Ssangyong, South Korea's fifth-largest auto maker, is far smaller than domestic industry leaders Hyundai Motor Co and Kia Motors Corp but with the global auto industry in a perilous state, its fate is being closely watched.
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