Struggling Korean manufacturer receives financial aid from SAIC
6 January 2009

Financially troubled Korean manufacturer Ssangyong has been thrown a lifeline after receiving nearly £14m from its parent company, Chinese car maker SAIC.

A statement from SAIC said the cash was destined for new product development, but Ssangyong owes its employees 29 billion won (£15.1m) in unpaid salaries for December.

>> Read more on Ssangyong’s financial crisis

SAIC owns 51.33 per cent of Ssangyong, which has seen its vehicle sales drop by 52.5 per cent year on year. Financial support had previously been ruled out by SAIC unless the company was restructured, paving the way for more than 2000 job cuts.

George Barrow

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