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  1. #1
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    Angry SsangYong Shuts Down Operations

    Although we've heard a lot of reports claiming that global automakers may file for bankruptcy due to the financial crisis, none of them actually got so far, with governments or majority share holders brings infusions of cash to rescue the companies. Unfortunately for fans of South Korean company SsangYong, the automaker has just announced that it will halt all operations and shut down its production facilities after its liquidities weren't enough to cover the December bills, taxes and payroll.

    But more importantly, the Shanghai Automotive Industry China, formerly known as SAIC, refused to bring new financial resources to the Korean carmaker after SsangYong's executives criticized the Chinese majority stake holder, asking it to leave the company, GlobalMotors informed. SAIC currently holds a total stake of 51.3 percent, the aforementioned source added.

    SsangYong will now have to close the doors of all its production facilities, with around 8,000 employees to be let go just before Christmas (2,500 white collars and 5,500 production employees). The South Korean manufacturer has unpaid debts of 100 billion WON (that's almost 77 million American dollars).

    The executive board have already confirmed plans to organize a protest against the majority owner in front of the company's Pyeongtaek plant in Gyeonggi Province, GlobalMotors explained, but no further details were provided.

    SsangYong's sales adopted a descending trend ever since the beginning of the economic crisis, with the most important decline recorded in November 2008 when deliveries dropped 63 percent. Total sales between January and November 2008 were down 34.5 percent when compared to the same period of the previous year.

  2. #2
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    This is sad news. I pity the people involved who lost their jobs, and regret the phasing out of a manufacturer who dared to be different.


    -F_D
    Eric Skeen is the Family Dog
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  3. #3
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    No good Jaques.

    Now you can chuck that IFS and put in a SFA.
    LC 78 Troopie 1HD-FTE
    +27 zero eight 2 four 95 9252

  4. #4
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    Jaques,

    At least you have a Merc drive train
    "A turbo: exhaust gasses go into the turbocharger and spin it, witchcraft happens and you go faster "
    By Jeremy Clarkson (I think)

  5. #5
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    SEOUL, South Korea (AP) - South Korea's Ssangyong Motor Co. said Monday that it had received $45 million from its Chinese parent Shanghai Automotive Industry Corp., as the ailing automaker struggles to stave off a possible liquidity problem.
    The company is also facing the threat of a strike from unionized workers, who began voting Monday whether to walk off the job if management demands massive job cuts as part of a restructuring.
    News reports have said the carmaker _ 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 announced in a statement that SAIC completed payment of $45 million in late December to help the automaker 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 automaker, 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, which has annual production capacity of 200,000 vehicles and 7,100 employees, posted a net loss of 98.1 billion won ($74.1 million) in the first nine months of last year amid weakening domestic demand for SUVs _ Ssangyong's mainstay vehicles. The company also produces the Chairman luxury sedan.
    SAIC sought the South Korean government's help to ensure Ssangyong's main creditor, Korea Development Bank, offers new loans to Ssangyong. But a senior official at Korea Development Bank said last week it won't provide financial assistance to Ssangyong Motor unless SAIC does so first.
    Last edited by JGoosen; 2009/01/06 at 10:00 AM.

  6. #6
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    Not really a surprise...Ssangyong never made it properly in Europe to a good selling car manufacturer as people only had trust in the Mercedes Engine...not in the car.....

    On the other hand, all European car manufacturers started cutting the production of SUV's and 4x4's like the X3, X5, X6 from BMW and ML from Mercedes as customers don't buy these "Boys-toys" anymore. In this context, RSA is still a "paradise" for men....

  7. #7
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    SSANGYONG RESTARTED PRODUCTION MON - 2nd Feb
    They have filed for recievership, to avaoid - bunkrupcy...
    I hope they will get over the slump, the SSANGYONG suv's offer a great
    fresh approach to 4 x 4 - and a unique design, which takes balls..
    MY BEST WISHES TO THE CO

  8. #8
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    Default Ssangyong kyron- puik voertuig

    Hallo alle Ssangyongers,
    Ek hoop Ssangyong bly voortbestaan, ek het nou my 4de Ssang, 'n Kyron xdi200.Dis 'n puik voertuig, ek lees maar van die manne wie se voertuie los is op die grondpad-My Kyron trap vas,ek het groot geword op grondpaaie en my SSang is selfs op 140k\uur vas op die pad-puik sleepvermoee en brandstof verbruik.

    Groetnis

  9. #9
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    Geniet hom!

  10. #10
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    SEOUL, South Korea (AP) - A South Korean court said Friday it has accepted Ssangyong Motor Co.'s request for protection from creditors, buying time for the troubled Chinese-owned manufacturer of light SUVs to try and restructure into a profitable automaker.

    Ssangyong is far smaller than domestic rivals Hyundai Motor Co. and Kia Motors Corp. Its troubles have drawn attention, however, amid turmoil in the world auto industry, which has been rocked by plunging demand for vehicles as a result of the global financial crisis.

    The Seoul Central District Court accepted Ssangyong's application to rehabilitate under court protection, said court spokesman Hong Jun-ho.

    Hong also said the court named former Hyundai Motor executive Lee Yoo-il and current Ssangyong executive Park Young-tae to run Ssangyong.

    The company is majority-owned by Shanghai Automotive Industry Corp., one of China's largest vehicle manufacturers. Ssangyong filed for court receivership, or bankruptcy protection, last month amid falling sales and mounting red ink.

    The South Korean company welcomed the court's decision, which it said showed "Ssangyong Motor has potentials and possibilities to revive." Ssangyong also said that the decision means that Shanghai Automotive Industry's management rights have been suspended.

    Ssangyong, which has annual production capacity of 200,000 vehicles and 7,100 employees, is South Korea's fifth-largest automaker, manufacturing mostly SUVs and a luxury sedan, the Chairman.

    Pyeongtaek, South Korea-based Ssangyong posted a net loss of 98.1 billion won ($70.9 million) in the first nine months of last year. It has yet to announce earnings results for the fourth quarter.

    Ssangyong sold a total of 92,665 vehicles in 2008, down almost 30 percent from the year before. The majority were exported to Europe, China and other countries. Ssangyong does not export to the United States.

    Ssangyong said last month its board has come up with a number of measures to cut costs such as seeking voluntary retirement and wage cuts for the next two years, among others steps.

    SAIC's foray into South Korea has been plagued by tensions with Ssangyong's union, including a seven-week strike in 2006.

    The company, which took over Ssangyong in 2004 and owns 51.33 percent of it, is a partner of General Motors Corp. and Volkswagen AG.

    Trading in Ssangyong's shares, which fell nearly 85 percent last year, was suspended upon last month's court filing. Its then president, Choi Hyung-tak, resigned on the day of the filing.

    The company intermittently suspended production over a three-week period until early this month amid a parts shortage.

    __

  11. #11
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    The latest i can find on Ssangyong Extracted from Automotive 27 Mar 2009

    It is difficult to understand the failure of Ssangyong. They make great cars, build them well and sell them at keen prices. Yet for the third time in just over a decade, it stands on the brink of disappearing.

    Ssangyong of South Korea was, fifteen years ago, known for basically one product: a modern version of the Jeep. Designed and built for the South Korean army and using locally manufactured Mercedes engine, the consumer version was a superb vehicle providing a far more comfortable - and capable - ride than the then model Land Rover Discovery. The "Jeep" contines as the Korando.

    Yes, it also made the horrible Musso but that didn't really matter.

    But as a minnow in the shark-infested waters of the global car industry, and in the face of the 1997 Asian currency crisis, Ssangyong ran into trouble and was taken over by Daewoo.

    Later, it was sold by Daewoo / GM and is now 51% owned by China's Shanghai Automotive Industry Corp., or SAIC. SAIC, readers will remember, was one of the companies that bid for MG Rover in the UK.

    In the meantime, Ssangyong built the Rexton - again, a superb 4WD vehicle and when that model was updated, it rivalled many far more expensive similar vehicles for quality and specification. It also produced a couple of hideous successors to the Musso - in particular the Stavic. But its Kyron was, again, a car that should sell in its droves - even its tramission is the lauded 6-speed T-Tronic from Daimler. And although not to everyone's taste, the Actyon Sports is an SUV / Pickup combination that should, other things being equal, have dominated the surfer / jet ski / motor-racing fraternity as a tow-car and support vehicle.

    Then it branched out: The Chairman is a locally produced version of a previous S Class Mercedes - selling for far less than a second-hand Mercedes in many markets. There is even a mass-produced long wheelbase version.

    But specialising in the 4WD segment was not enough. In Deagu, in the south of South Korea, there are a few examples of one of the best looking executive cars on the market. There are no model badges, but there are Ssangong insignia on the bonnet and boot. It's quiet, quick and luxurious inside, at least when peering through the windows. It appears on no model lists. If this was Ssangyong's breakout model, its timing could not have been worse.

    For Ssangyong now has just one plant - and that is mothballed. The company applied to the Court for the appointment of receivers in early January, and the court provided protection against seizure of its assets. The company, with no stock, suspended production in mid March but after four days supplies began to dribble in.

    However, yesterday, the company again suspended production - and the company is reported to have said that this time, it will make no new vehicles until the plant re-opens in January 2010.

    This may not be as desperate a measure as it seems, depending on stock levels. Indeed, if car makers around the world mothballed plants and sold existing stock, they may turn their cashflow around quickly - depending on what they have to pay workers.

    The Court will rule on a survival plan in early April. SAIC shows no signs of adding additional capital or cashflow support.

    South Korea still struggles to decide what to do about its car industry. From outside Korea, it seems a no-brainer: Hyundai and Kia are strategic companies in the national economy. But Daewoo is a wholly owned subsidiary of GM - and badges its cars as Chevrolet for many markets, often regarded as something of an insult.

    Ssangyong is still tiny.

    Direct intervention by the government is still seen as an unlikely scenario by many commentators in South Korea. But yesterday the government announced a side-ways look at the issue of sales within the domestic market: starting in May and running to the end of this year, all taxes on new cars will be reduced by 70% - provided that the car being replaced was registered before 2000.

    The government thinks that around a third of the cars in South Korea were first registered before that deadline and so, in theory, about 5.5 million new cars could be registered.

    But unemployment is rising, salaries are falling, basic living costs are increasing and families are already long into an austerity drive with even the usually last-to-to spending on supplementary education starting to claim casualties at the end of 2008. As a result, there is little money available to buy new cars, even with incentives such as this.

    There is a plan for the Government owned Korea Development Bank to raise, in concert with other institutions, around USD750 million to pursue M&A activity in the Korean market.

    Unles GM and SAIC get cute on their demands, that money should be enough to buy out both Daewoo and Ssangyong, bringing them back together. The only problem with that is that Daewoo might not own any designs - and the recently announced Chevrolet SUV known as the Captiva has not been a critical or consumer success.

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