A South Korean court has approved Ssangyong’s revival plan, meaning the firm will avoid going into liquidation.
Ssangyong has spent much of the year facing oblivion, having been at the mercy of the court as it attempted to seek new investment and consolidate its debts. It has been in court-approved bankruptcy protection since February.
Earlier this year its workers rioted for 77 days over redundancy plans, and this has forced the delay of its new C200 crossover, which was due to be revealed at the Frankfurt motor show in September.
But the court has now approved Ssangyong’s recovery plan and the firm said it planned to implement a three-year programme designed to increase competitiveness, return to profitability and triple its revenues year on year. The firm will also look to secure new investment and finance to help fund the C200.
Paul Williams, managing director of SsangYong distributor Koelliker UK, said, “This is the news we have been waiting for. It’s been a very frustrating year with considerable uncertainty, but this decision means that SsangYong has a lifeline and I know that our Korean colleagues are determined to turn the company around.
“Most importantly, we can start planning properly for 2010, including the new C200 compact car.”