S. Korean court deems Ssangyong Motor viable

SEOUL, May 6 (Yonhap) -- A South Korean court said Wednesday that Ssangyong Motor
Co., under bankruptcy protection since February, is viable, raising hopes for the
troubled automaker's survival.
"Ssangyong Motor's continued existence is valuable," the court said after
reviewing results of audit by an accounting firm Samjong KPMG Inc.
Ssangyong, the smallest automaker in South Korea, announced a plan to cut 36
percent of its workforce, or 2,646 jobs, as part of its turnaround bid.
Ssangyong was abandoned by Shanghai Automotive Industry Corp. (SAIC) in January
after the Chinese parent refused to make any major effort to save its affiliate.
Ssangyong, which has an annual production capacity of 200,000 vehicles, posted a
net loss of 709.7 billion won (US$554 million) in 2008 on sales of 2.5 trillion
won, down 20 percent from a year earlier.
In the first three months of this year, Ssangyong's vehicle sales dived 76
percent to 6,471 units.
With the bankruptcy protection, SAIC, which still owns a 51-percent stake in
Ssangyong, relinquished its control of the South Korean carmaker.
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