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Ssangyong production to resume
07 August 2009
Ssangyong is planning to resume production later this month after the 77-day occupation of its factory by disgruntled workers came to an end.
A statement released by the troubled South Korean car manufacturer said its production lines had suffered no serious damage and production could resume in two to three weeks' time.
The protest cost Ssangyong a reported $258 million (£154m) in lost production and it has until 15 September to submit its recovery plan to Korean courts. Ssangyong has been in administration since January.
A Korean insider told Bloomberg the situation at Ssangyong was still precarious, despite the protest coming to an end.
“The chances of Ssangyong’s survival are very slim at the moment because it doesn’t have the money to develop new models and expand its sales network,” he said.
“There appears to be more expectations that the company may be put up for sale.”
Earlier this week, Ssangyong creditors filed a petition to the courts requesting that the firm be liquidated.
Ssangyong sold 99 cars in the UK in July.
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