Manufacturer is more than £50m in debt and can't pay salaries for December
22 December 2008

Korean carmaker Ssangyong cannot afford to pay its December salaries and has confirmed it’s more than £50m in debt.

“Due to lack of operating funds for December, it is impossible for the company to pay salaries any longer,” Ssangyong told workers in a letter last Friday.

Korea’s smallest manufacturer turned to its parent company Shanghai Automotive Industry in China for emergency funds, but the request was refused.

The firm employs about 8000 staff in Korean. Shanghai Automotive bought the majority stake three years ago.

The Ssangyong executive committee now plans a protest rally against its Chinese management, according to Korean newspaper Chosun.

Ssangyong sales in Korea have dropped by more than a third in the last year. It’s already shut 60 dealers in the country.

In the UK Ssangyong has sold 595 cars to date this year, compared with 1299 during the same period last year.

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Comments
15

22 December 2008

Does this mean we won't get the Khan version afterall?

Shame.

 

 

It's all about the twisties........

22 December 2008

So much for the 'emerging' markets in the far-east being immune from the global credit crunch...

Im suprised they make any profits when they produce such ugly cars as the Rodius!

22 December 2008

[quote TegTypeR]

Does this mean we won't get the Khan version afterall?

Shame.

[/quote]

l0l

22 December 2008

I feel for the staff but if they haven't been paid it might save a few spaniels from the dinner table this christmas.

22 December 2008

There's a kennel of truth in what you say...

22 December 2008

How embarassing for Ssangyong. I bet they've got their tail between their legs. The employees have really got it ruff this Christmas.

22 December 2008

joking aside;

is this what you get when you do business with the Chinese? financial crisis or not its no way to treat your associate's staff...

23 December 2008

[quote KeithE] is this what you get when you do business with the Chinese? [/quote]

Having lived in both Singapore and Hong Kong for many years - yes! Unfortunately our Western sense of fair play and honesty has little place. Dog eat dog (sorry - couldn't resist)

23 December 2008

How can I find out who the 1,894 people who bought Ssangyongs in this coutry in the last two years were and shouldn't their names appear on some form of register of the clinically insane?

23 December 2008

[quote jelly7961]our Western sense of fair play and honesty[/quote]

Our "Western sense of fair play and honesty" has currently got a black eye and a bloody nose. There is certainly not much of it evident in The City or Wall Street.

...the band was playing Dixie: double-four time...

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