Ssangyong Motor to restart production next week

SEOUL, Jan. 27 (Yonhap) -- Ssangyong Motor Co., currently awaiting a court's
decision on bankruptcy protection, said Tuesday it plans to restart operations at
all its domestic plants next week following their protracted shutdown.
Global carmakers, including General Motors and Chrysler LLC., have been hit hard
by the global financial turmoil and slowing economy. On Jan. 9, Ssangyong,
controlled by China's Shanghai Automotive Industry Corp. (SAIC), filed for court
protection due to a tightening cash squeeze after suffering from tumbling vehicle
sales.
"We plan to restart productions at all assembly plants beginning Monday, as
problems related to parts procurements have been resolved to some degree," an
official at South Korea's fourth-largest carmaker said.
After applying for bankruptcy protection, Ssangyong halted production as
subcontractors stopped supplying parts. The automaker partially resumed
production in mid-January, but again halted its entire operations on Jan. 22.
On Jan. 12, the Seoul Central District Court barred creditors from selling the
automaker's assets, its first administrative step before making a decision on
whether to accept Ssangyong's receivership early next month.
SAIC, which holds a 51-percent stake in Ssangyong, will lose its management
control if the South Korean court accepts receivership.
SAIC took over the company for US$500 million in 2004, marking the first direct
investment by a Chinese company in a local manufacturer.
sooyeon@yna.co.kr
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