Ssangyong engaged in talks to find new owner: source

INCHEON, Oct. 18 (Yonhap) -- South Korea's smallest carmaker is engaged in talks
to find a new owner that could revive the embattled company, which filed for
bankruptcy protection earlier in the year, a company source said.

Lee Yoo-il, one of two court-appointed managers at Ssangyong, told reporters on
Yeongjong Island in Incheon west of Seoul that the company is holding talks with
a few interested parties from abroad.
"The companies that shown interest have been slow to make inroads into the Asian
market, and do not have conflicting automobile manufacturing platforms as
Ssangyong," he said at the unveiling ceremony for the company's new luxury sedan.
Without going into detail, he said that Ssangyong may be able to select a firm to
coordinate sales in late November or early December
The managers said speculation that Volkswagen may be trying to buy the company is
unfounded and added that the possible buyer is not from Russia or China.
Ssangyong makes luxury sedans and sports utility vehicles, which have been hit
the hardest by the economic downturn.
He added that while Ssangyong has been hurt by a labor strike, it is aiming to
increase production to 85,000 vehicles in 2010, up from an earlier goal of 69,000
units.
The carmaker needs to sell at least 72,000 units per year to break even.
Ssangyong, South Korea's smallest carmaker, entered bankruptcy protection in
February after Shanghai Automotive Industry Corp. abandoned its loss-making
affiliate. The Chinese company owns 51 percent stake in Ssangyong, whose total
debt is valued at around 1.23 trillion won (US$1.06 billion).
yonngong@yna.co.kr
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