ID :
44877
Tue, 02/10/2009 - 09:52
Auther :
Shortlink :
https://www.oananews.org//node/44877
The shortlink copeid
Ssangyong managers warn of 'radical' restructuring for employees
SEOUL, Feb. 9 (Yonhap) -- Employees of Ssangyong Motor Co., which recently won
court approval for bankruptcy protection, should brace for a "radical"
restructuring as part of efforts to turn the ailing carmaker into a profitable
firm, court-appointed managers said Monday.
"It's time to prove our efforts for survival," the two managers, Lee Yoo-il and
Park Young-tae, said in a joint statement released by Ssangyong.
"A radical self-rescue effort is necessary to fundamentally change the company's
business structure," they said in the statement.
An official at Ssangyong's public relations team declined to comment on the
statement.
Lee, a former president of Hyundai Motor Co., and Park, the current financial
director at Ssangyong, were named on Friday by the Seoul Central District Court
to restructure South Korea's smallest carmaker as part of the court ordered
bankruptcy protection.
Ssangyong, 51 percent of which is owned by China's Shanghai Automotive Industry
Corp. (SAIC), became the nation's first high-profile victim of the global
recession as frozen credit sapped demand for new vehicles.
Like their counterparts overseas, automakers in South Korea have been forced to
lay off temporary workers, slash daily working hours and idle production lines to
control rising inventories of unsold vehicles.
SAIC relinquished its management control of Ssangyong upon court receivership,
but can retain its stock holdings.
Analysts say SAIC may give up its role as a major shareholder of Ssangyong with
the auto industry worldwide struggling with its worst crisis in decades amid the
deepening global recession.
While the court's approval allowed Ssangyong to buy time for a turnaround, the
road ahead is decidedly obscure as the company faces radical job cuts, slumping
sales and dwindling cash reserves, analysts say.
Under court receivership, Ssangyong must submit a restructuring plan by June. If
the plan falls short of expectations, the court will liquidate the carmaker.
Some analysts have warned that Ssangyong needs to cut more than 30 percent of its
7,128 workers, saying the company's per-capita productivity is only about
one-third of Hyundai Motor Co.' s
Shares of Ssangyong, which resumed trading on Monday, plunged as much as 15
percent, the daily trading limit, amid a bleak outlook over the carmaker's
viability.
(END)
court approval for bankruptcy protection, should brace for a "radical"
restructuring as part of efforts to turn the ailing carmaker into a profitable
firm, court-appointed managers said Monday.
"It's time to prove our efforts for survival," the two managers, Lee Yoo-il and
Park Young-tae, said in a joint statement released by Ssangyong.
"A radical self-rescue effort is necessary to fundamentally change the company's
business structure," they said in the statement.
An official at Ssangyong's public relations team declined to comment on the
statement.
Lee, a former president of Hyundai Motor Co., and Park, the current financial
director at Ssangyong, were named on Friday by the Seoul Central District Court
to restructure South Korea's smallest carmaker as part of the court ordered
bankruptcy protection.
Ssangyong, 51 percent of which is owned by China's Shanghai Automotive Industry
Corp. (SAIC), became the nation's first high-profile victim of the global
recession as frozen credit sapped demand for new vehicles.
Like their counterparts overseas, automakers in South Korea have been forced to
lay off temporary workers, slash daily working hours and idle production lines to
control rising inventories of unsold vehicles.
SAIC relinquished its management control of Ssangyong upon court receivership,
but can retain its stock holdings.
Analysts say SAIC may give up its role as a major shareholder of Ssangyong with
the auto industry worldwide struggling with its worst crisis in decades amid the
deepening global recession.
While the court's approval allowed Ssangyong to buy time for a turnaround, the
road ahead is decidedly obscure as the company faces radical job cuts, slumping
sales and dwindling cash reserves, analysts say.
Under court receivership, Ssangyong must submit a restructuring plan by June. If
the plan falls short of expectations, the court will liquidate the carmaker.
Some analysts have warned that Ssangyong needs to cut more than 30 percent of its
7,128 workers, saying the company's per-capita productivity is only about
one-third of Hyundai Motor Co.' s
Shares of Ssangyong, which resumed trading on Monday, plunged as much as 15
percent, the daily trading limit, amid a bleak outlook over the carmaker's
viability.
(END)
