RTTNews) - Thursday, Chinese automaker, Shanghai Automotive Industry Corp. dropped its plans of setting up a joint venture factory with South Korea's Ssangyong Motor Co., to manufacture SUVs, sources familiar with the matter said.
Shanghai Automotive Industry is a longtime partner of General Motors Corp. and Volkswagen AG. The company owns a 51% stake in South Korea's Ssangyong.
Though the reason for the cancellation of the project was not known, the companies are still discussing other ways to expand in China, sources said.
Shanghai Automotive Industry had earlier agreed to partner with Ssangyong to build a factory in China to manufacture about 100 thousand SUVs a year in Shanghai.
Due to rising gasoline costs and stringent pollution control measures, the demand for luxury vehicles is slowly on the wane while Economy models are gaining popularity. Copyright(c) 2006 RealTimeTraders.com, Inc. All Rights Reserved
source:http://www.tradingmarkets.com/tm.site/news/ASIAN%20MARKETS/207964/

SAIC hits the brakes on making Ssangyong cars
Jin Jing
2006-03-30
SHANGHAI Automobile Industry Corp, the owner of South Korea's Ssangyong Motor Corp, said it would not build a plant to produce Ssangyong's models in China as it focuses more on costs and efficiency.

"We always hope to carry out a localization strategy for Ssangyong in China," according to an official from the communication department of SAIC, the second largest automaker domestically.

"But we considered whether it is necessary to build a factory here as it involves huge investments in land, facilities, equipment and workers."

The communication department also said SAIC is still working on plans to boost awareness and brand image of Saangyong's cars. The plans include launching two new imported models in May, and seeking other avenues such as licensed manufacturing.

SAIC, which make cars with General Motors Corp and Volkswagen AG in China, paid more than US$500 million for a combined 51 percent of Ssangyong in early 2005 to enhance its international competitiveness.

SAIC and Ssangyong agreed to set up a joint venture in Shanghai to make sports utility vehicles with an annual capacity of 100,000 units, part of its US$1 billion investment in the South Korean carmaker, by 2010, according to previous media reports from South Korea.

Two months earlier, Ssangyong also said it would invest 2.5 trillion won (US$2.5 billion) in the next five years to develop new models and double sales target.

But on Tuesday, Choi Hyung Tak, chief executive officer of Ssangyong, said the firm had scrapped its plan to expand further in China due to tight macroeconomic control on the automotive industry by the central government.

However, Chung Mu Young, a Ssangyong spokesman, said the Chinese government's requirements that the firm set up additional facilities, including a research and development center which would cost the company too much money, killed the plan.

But an auto analyst believed that SAIC is still in a favorable position to snare a bigger share of the Chinese auto market.

"SAIC does not lack models in China to capture more market share," said Zhang Xin, an auto analyst from Guotai Jun'an Securities Co Ltd.
http://www.shanghaidaily.com/art/2006/03/30/255753/SAIC_hits_the_brakes_on_making_Ssangyong_cars.htm

too bad it didnt work out, this would of been a good way for chinese markets to enter korean markets

SAIC took over 49% of Ssangyong's shares in late 2004. How is this deal going on now? Do you think it can be regarded as a successful deal?

i think theres a thread on this topic...check out

http://www.chinacarforums.com/forum/showthread.php?t=225

Jin Jing
2006-12-19
SHANGHAI Automotive Industrial Corp is restarting its plans to set up a joint venture with Ssangyong Motor Corp in China to accelerate the South Korean car maker's expansion in the local market.

"The program is again under feasibility study, but shareholdings and total investments have not been decided," a company source told Shanghai Daily.

The communications department at SAIC, the nation's biggest car maker, confirmed the development yesterday.

SAIC, which spent US$500 million for a 51 percent stake in Ssangyong, planned to set up a joint venture in Shanghai to make sport utility vehicles, including the Kyron model, with an annual capacity of 100,000 units. The deal was to be part of the company's US$1 billion investment in the South Korean car maker by 2010.

But the plan was suspended after concerns arose from the South Korea car maker's labor union that the Chinese operation would lead to the loss of technology and job cuts in the home market.

"Moving to China doesn't mean we plan to close factories in South Korea, and the cooperation would benefit both parties in technology as well as products," SAIC said.

The introduction of Ssangyong's SUV models would help SAIC expand product portfolio.The company mainly produces cars in cooperation with Volkswagen AG and General Motors.

source; shanghaidaily.com

Ssangyong Motor said it plans to build a plant and start producing cars in China before 2011 in cooperation with its mother company Shanghai Automotive Industry Corporation (SAIC). The carmaker’s possible step to move its production base overseas is expected to generate controversy as the latest plan suggests that Ssangyong Motor will manufacture in China all its cars to be sold in that country.
Phillip Murtaugh, one of Ssangyong Motor’s chief executives, unveiled mid- and long-term growth plans at the Westin Chosun Hotel in Seoul Wednesday. The automaker aims to earn W6 trillion (US$1=W938) in sales and sell 330,000 cars by 2011. To get there, Ssangyong plans to shed its image as a sports utility vehicle maker and add new models to its lineup including sedans.

Murtaugh said the company will release a 2,000cc sedan in Korea to compete with Hyundai’s Sonata. It will also develop seven more new models including passenger cars and multi-purpose vehicles to become one of the top three car brands in terms of market share in Korea by 2011.

The SAIC’s Korean, Chinese and European researchers are currently working on Ssangyong’s new models, which are based on the platforms of British carmaker Rover’s Rover 75 and 25.

(englishnews@chosun.com )

Interesting news, would SAIC then close the Korean plant down ????
With that big strike they had I wouldn't be surprised.

Thx for posting Ash :thumb:

Ssangyong's target market is probably China and beyond, so building the cars in China makes perfect sense.

To make cars in S Korea and ship them over to China is out of the question anyway - financial/economical nonsense.

How about shipping cars from China to S Korea? It's economically sound, but given S Korea's notorious restrictions on imports, how's that gonna work out?

Although 2011 is a long way off, that's good news for SAIC-Ssangyong. It seems that last March the government nixed the “S” project aimed at building a plant to produce an SUV on the Kyron platform. I believe it was going to be built out in Yizheng.

Lately the government has been discouraging over investment in car plants. But Shanghai Daily in June reported that the company had not given up.

Double Dragon had always wanted to export to the U.S. and now under SAIC management that's still the ultimate goal.

Ssangyong's target market is probably China and beyond, so building the cars in China makes perfect sense.

To make cars in S Korea and ship them over to China is out of the question anyway - financial/economical nonsense.

How about shipping cars from China to S Korea? It's economically sound, but given S Korea's notorious restrictions on imports, how's that gonna work out?

S.K charge 8% of CIF (Cost insurance freight) for the import car and other tax is same as the domestic cars. How much do they charge for the fully assembled import car in China?

To make cars in S Korea and ship them over to China is out of the question anyway - financial/economical nonsense.
It is actually the issue of import duty. It is always cheaper to build a Ssangyong of equal quality and content in Korea than in China. The reason it cannot be done is because of China's 35% import duty on foreign vehicles.

How about shipping cars from China to S Korea?
Not feasible either. Korea has a tough emissions standard that even European makers complain about. And then there is the 10% import duty(8% is for vehicles with displacement of 2000 cc or under, so doesn't apply to Ssangyongs)

It's economically sound, but given S Korea's notorious restrictions on imports, how's that gonna work out?
Actually there has been studies on selling Indian(Tata Indica) and Chinese(Zhonghua) vehicles in Korea. Both turned out to be not feasible as they were only 10% cheaper at retail, even though they were decades behind Hyundai models in engineering and quality. The same problem with SAIC's Roewe to be assembled by Ssangyong. SAIC cannot price this vehicle for more than $1000 below Hyundai Sonata, but Roewe is a full segment smaller than Sonata and is actually comparable to compact(really a midsizer by the US standard) Elantra in size.

I wonder if the new Ssangyong sedan will be based on the Roewe sedan?

And then there is the 10% import duty(8% is for vehicles with displacement of 2000 cc or under, so doesn't apply to Ssangyongs)

10% is not an import duty... it's called as "special consumption tax" and it's also applied to the domestic car as well. The import duty is 8% as I said.

Ssangyong's target market is probably China and beyond, so building the cars in China makes perfect sense.

To make cars in S Korea and ship them over to China is out of the question anyway - financial/economical nonsense.

How about shipping cars from China to S Korea? It's economically sound, but given S Korea's notorious restrictions on imports, how's that gonna work out?

it it not what you said, building cars in China is just for cost-down due to lower lab cost, and also these cars will be sold in China. As you know, China car market is growing rapidly, and the production capability of Korean Ssangyang could not meet this growth, I think. As I know, many of carmakers is building the manufacturing factories in China or put more assembly lines to enhance their production volume, because they want more market shares.

SHANGHAI, Nov 02, 2007 (SinoCast via COMTEX) -- SYGMF | charts | news | PowerRating -- Ssangyong Motor Co. (KSE: 003620), a controlled subsidiary of Shanghai Automotive Industry Corporation (Group) (SAIC), made profits of KRW 1.2 billion in the third quarter of 2007.

Ssangyong Motor, a large South Korean automaker specializing in SUV manufacturing, achieved KRW 745.4 billion sales revenues in Q3, up 23.3% from a year earlier, and KRW 16.5 billion operational profits, down 2.8%.

The company gained KRW 6.2 billion profits with an 8.8% rise in the second quarter of this year, the first positive performance since it was acquired by SAIC in 2004.

Ssangyong sold 24,734 SUVs in South Korea in the first half of 2007, accounting for 22.8% of the country's total sales of 108,254, surpassing its rival Kia Motors for the first time.

SsangYong to launch China-made Kyron SUVs.

March 28, 2008 - South Korea’s SsangYong Auto Group is to begin building its Kyron sport utility vehicle (SUV) in China, tailored for local market requirements, reported Automotive News yesterday. Based on the need of the China market, SsangYong has equipped the model with a 2300cc gasoline engine and made improvements on the exterior design. The model is expected to be sold in China beginning 2008 for over 20,000 units per year.

Although no specific details of the changes have been revealed, a spokesperson for the automaker, Choi Nam Hyun, said that some components will be sourced locally, although initially most will be imported from South Korea. The model will be built at Shanghai Automotive Industry Corporation's (SAIC) plant in Yizheng, Jiangsu Province, although the rate of production has not been specified.

The newly refurbished plant now builds the Istana van. However, only 4,000 units were built last year, in a plant that has a capacity of 20,000 units per year using a single-shift system, so it is hardly pressed for space. One reason why sales of the vehicle have not performed too well initially is that the amount of components brought in is above Chinese government regulations, requiring the levying of additional taxes. The company will thus no doubt be looking to reduce the number of components it brings in so as to become competitive in the local market against vehicles such as the Great Wall Hover, Toyota Landcruiser, and the soon-to-be-introduced Nissan X-Trail.

SsangYong Auto has been actively moving forward with its largest shareholder SAIC in building a joint venture in China to assemble the athletic multifunctional car Kyron. Ssangyong and SAIC announced a deal in 2005 to produce the Kyron in China, but the plan stalled due to strong resistance from Ssangyong’s union. Union leaders were worried Kyron production would shift fully to China and other models would follow. They also said parts sourcing from China would severely impact all of Ssangyong’s domestic suppliers.

SAIC, which holds a 51% stake in Ssangyong, has promised to invest 225 billion won ($ 32 billion) in the Korean auto maker to help it become more competitive. Ssangyong plans to introduce several new models in the hopes of raising global sales to 340,000 units by 2010.

source: Gasgoo.com

SAIC to make Kyron Chinese version in the year end.

April 17, 2008 - South Korea's carmaker SsangYong Motor Company announced recently that it will produce the Chinese version of Ssang Yong SUV Kyron along with Shanghai Automotive Industry Corporation (SAIC).

SAIC also told to reporters last week that SAIC is now cooperating with SsangYong to develop independently an SUV, while the details of the model and the delivering time are not disclosed at present. Sources confirmed that SAIC will soon produce own-brand SUV, with the latest Kyron as the prototype, and will first deliver a 2.3-liter version then.

Now, SsangYong has launched the 2.0-liter 2008 version and 2.3-liter Kyron priced at 243,800 yuan ($34,830) to 293,000 yuan in China. SsangYong said that at the end of this year locally-made Kyron will be upgraded based on the existing Kyron on some accessories, in order to cater to the Chinese consumer's demand and taste. A market analyst noted that the Chinese-made SsangYong Kyron will be at least 50,000 yuan cheaper than the imported vehicle.

Sources said last week that the Kyron Chinese version which soon will be launched is not the joint project by SAIC and SsangYong, but SAIC will produce domestically by paying certain technical fees to SsangYong. Thus the Chinese edition of Kyron is the independent brand SUV of SAIC, and will carry SAIC brand logo.

source: Gasgoo.com

SAIC waits government approval to build Ssangyong SUVs in China.

June 25, 2008 - Shanghai Automotive (SAIC) and its majority owned SsangYong Motor have finished building up their production lines at their joint venture plant, a senior company official told reporters on June 23.

The sides are currently only awaiting the government approval to launch production at the former SAIC plant at Yizeng, Jiangsu province. The plant will be operated in a 50/50 partnership.

Hu Maoyuan, chairman for SAIC, says at the launching ceremony for MG 3SW that it is not expecting any difficulty in obtaining the approval, but he declines to say when his company will start production at the plant.

SsangYong now export Rexton, Kyron, Actyon and Rodius to Chinese market. Industry analysts say the comparably hot selling Rexton is likely to be made at the plant, where SAIC's own Roewe brand is also expected to be made.

source: Gasgoo.com

Ssangyong Motor's union to send delegation to China.

July 22, 2008 - The labor union of Ssangyong Motor Co. said Tuesday it will send a delegation this week to the headquarters of Shanghai Automotive Industry Corp. to protest what it called the Chinese parent's mismanagement and demand a pay increase.

Union leaders have also been upset as a sudden drop in vehicle sales of Ssangyong, 51 per cent owned by SAIC, could put Ssangyong into a liquidity crisis unless the Chinese parent injects fresh capital into the South Korean unit.

Hit by higher fuel prices and the stagnant South Korean economy, Ssangyong saw its domestic sales plunge 67 per cent on-year to 1,902 units last month.

Ssangyong, the smallest automaker in South Korea, sold 26 per cent fewer vehicles in the first six months of this year as consumers particularly shun its gas-guzzling sport-utility vehicles. Ssangyong's vehicle lineup is dominated by SUVs and luxury sedans.

"The delegation, led by Ssangyong's union chief Chung Il-kwon, will meet SAIC vice chairman Chen Hong in China on Wednesday," a union official said by telephone, declining to give details.

On Monday, the union said it has agreed with management on a shutdown of the company's only plant for three weeks from July 31 to cut back production amid sluggish demand.

The decision underlined a dilemma facing Ssangyong, which has no small cars in an era of expensive gas prices, analysts say.

Officials at Ssangyong's public relations team weren't immediately available for comment.

Since SAIC bought the controlling stake in Ssangyong for US$500 million in 2002, Ssangyong's unionists have accused the Chinese parent of trying to copy technology without spending for the development of new models.

Early this year, prosecutors raided Ssangyong's plant as part of their investigation into allegations that it illegally leaked hybrid technology to SAIC.

From:AsiaPulse

Ssangyong Motor, union agree on wage deal


July 30, 2008

Ssangyong Motor Co. and its labor union reached a wage deal on Tuesday, averting a full-scale strike over salary negotiations at a time when the automaker is reeling from a plunge in sales, union officials said.

The union accepted Ssangyong's offer of a 62,000 won (US$61.4) increase in basic monthly salary and a bonus payment of two million won for each worker, in order to "overcome a management crisis," according to a union official.

The tentative deal must still be voted on by the union's 5,200 workers. Ssangyong, the South Korean unit of China's Shanghai Automotive Industry Corp. (SAIC), is the first automaker in South Korea to reach a wage deal this year.

The deal came less than a week after Ssangyong's union leaders met with SAIC Vice Chairman Chen Hong to protest what the union called the Chinese parent's mismanagement and seek fresh capital.

At the meeting, the SAIC executive ruled out the possibility of the Chinese automaker selling Ssangyong Motor amid fears of a cash shortage, according to Ssangyong union chief Chung Il-kwon.

Union leaders have been anxious recently, as a sudden drop in vehicle sales of Ssangyong could tip the company into a liquidity crisis unless its Chinese parent injects new capital into the South Korean unit.

Officials at Ssangyong's public relations team declined to comment on the meeting between the SAIC executive and union leaders.

Ssangyong said it will close its sole plant in Pyeongtaek, 65 kilometers southwest of Seoul, for 15 days from Thursday as sales plunged.

Analysts say higher diesel prices in South Korea and a stagnant economy have led Ssangyong, which generates more than three-quarters of its sales domestically, to curtail production.

Last month, Ssangyong saw its domestic sales plunge 67 percent on-year to 1,902 units.

In the first six months of this year, Ssangyong, South Korea's smallest automaker, sold 26 percent fewer vehicles as consumers shunned its gas-guzzling sport-utility vehicles. Ssangyong's vehicle lineup is dominated by SUVs and luxury sedans.

The plant shutdown will be the first for Ssangyong since it idled some of its production lines in May because of sluggish demand.

Ssangyong Motor's sales slip 7.4% in July

August 03, 2008

Ssangyong Motor Co., the South Korean unit of China's Shanghai Automotive Industry Corp., said Friday that its vehicle sales fell 7.4 percent in July from a year earlier to 10,069 units.

During the last month, domestic sales plunged 24 percent to 4,409 units, while exports gained 11.7 percent to 5,660 units, the company said in a statement.

http://www.gasgoo.com/auto-news/7296/Ssangyong-Motor-s-sales-slip-7-4-in-July.html

SAIC promises to build JV with Ssangyong

August 05, 2008

Shanghai, August 5 (Gasgoo.com) China's Shanghai Automotive Industry Corp (SAIC) has reaffirmed its plans to build a joint venture with its Korean subsidiary Ssangyong Motor by 2011.

The second factory of SAIC in Yizheng, Jiangsu Province is reported to be the manufacturing base of the venture. Both Ssangyong Kyron SUV and SAIC's Roewe are expected to be built there.

Ssangyong said on the weekend that its vehicle sales fell 7.4 per cent in July from a year earlier to 10,069 units, an improvement compared with 32.4 per cent decline in June.

Domestic sales plunged 24 per cent to 4,409 units during the last month, while exports gained 11.7 per cent to 5,660 units, the company said in a statement.
http://www.gasgoo.com/auto-news/7319/SAIC-promises-to-build-JV-with-Ssangyong.html

Ssangyong Motor Co., the South Korean unit of China's Shanghai Automotive Industry Corp (SAIC), said Wednesday an 18-day shutdown of its sole plant here will cause it to lose 2.2 trillion won ($2.16 billion) in lost production.

Ssangyong has shut its auto assembly plant in Pyeongtaek, about 65 kilometers south of Seoul, from July 31 until August 17, to adjust production in reaction to slowing sales.


"The plant will resume production on August 18," Ssangyong said in a regulatory filing.

Ssangyong, South Korea's smallest automaker, has been hit hard by higher fuel prices because its lineup is dominated by gas-guzzling sports-utility vehicles. :eek:
http://yaqeenauto.spaces.live.com

Ssangyong Motor's auto sales plunge 36% in August

September 02, 2008

Ssangyong Motor Co., the South Korean unit of China's Shanghai Automotive Industry Corp., said Monday its vehicle sales last month nosedived 36.1 per cent from a year earlier, hit by a production stoppage to adjust output amid sluggish demand.

Last month, Ssangyong sold a total of 7,302 vehicles with domestic sales plunging 47.1 per cent to 2,805 units and exports, including kits, falling 26.5 per cent to 4,497, the company said.



http://www.gasgoo.com/auto-news/1007605/Ssangyong-Motor-s-auto-sales-plunge-36-in-August.html

Ssangyong Motor to cut 553 jobs due to low sales


September 19, 2008


Ssangyong Motor Co. (KSE:003620), the South Korean unit of China's Shanghai Automotive Industry Corp. (SAIC), plans to slash 553 jobs due to a prolonged slump in sales, the company's labor union said Thursday.

The plan, which cuts more than 10 per cent of its workforce, was presented in a recent meeting between the management and the union, according to union official Ji Seon-yeol.

"The Shanghai capital is trying to pass the burden of its management failure to workers," Ji said, referring to Ssangyong's Chinese parent.

Ssangyong - which sold 59,022 units in the first eight months of this year, down 30.6 per cent from the same period a year ago - is also moving to cut its 2008 sales target by as much as 44 per cent to 80,000 vehicles, another union official said.

The carmaker originally said it aims to sell 141,800 vehicles this year, compared with 131,637 units sold last year.

Ssangyong spokesman Cha Ki-woong in Seoul verified the union's claim, but declined to elaborate further.

Since early this year, Ssangyong, South Korea's smallest automaker, has been hit hard by high gas prices because its line-up is dominated by fuel-guzzling sport-utility vehicles and large-size sedans.

Ssangyong Motor chief executive officer Choi Hyung-tak is on course to fall short of the company's annual profit and sales targets this year, as the automaker posted a net loss of 69.9 billion won (US$60.6 million) on sales of 1.32 trillion won.

First-half revenues fell 18.6 per cent from a year earlier.

Amid dwindling sales, Ssangyong shut down its sole auto assembly plant in Pyeongtaek, about 65 kilometers south of Seoul, from July 31 to August 17, to cut down on inventory.

The 18-day shutdown cost up to 2.2 trillion won in lost production, the automaker said earlier.

http://www.gasgoo.com/auto-news/1007800/Ssangyong-Motor-to-cut-553-jobs-due-to-low-sales.html


Is SAIC really not learning a lesson from Chrysler ?

SAIC gives up on Ssangyong Motor

By Cho Chung-un 2009.01.10

Ssangyong Motor Co., yesterday filed for court receivership after its Chinese parent company decided to abandon management rights over the carmaker, which is suffering from a serious liquidity crisis.
"The company has been suffering from a serious liquidity crisis because of plummeting vehicle sales and a serious credit crunch globally," Ssangyong said in a statement.

The decision was made in a board meeting in China, where Shanghai Automotive Industry Corp., the parent of Ssangyong, is located.

"We had tried to save the company by contacting the Korean government and financial institutions, but such efforts have ultimately failed," Ssangyong said.

"It was an unavoidable decision."

The Korean government and Korea Development Bank, Ssangyong's main creditor, had requested that the SAIC first do its part to fix Ssangyong as its controlling shareholder.


Ssangyong`s SAIC-led board decided to seek court receivership due to financial problems on Friday.


Two of its three top executives - Choi Hyung-tak and Zhang Haitao - left the company. Choi left his post, citing personal reasons while Zhang is said to take another post at SAIC.

The court will decide within a month whether to accept Ssangyong's application for protection, a spokesman of the Seoul Central District Court said.

If the court accepts, Ssangyong will earn time to restructure itself into a profitable firm as it freezes the company's debt and protects itself from creditors.

However, SAIC loses control of Ssangyong with the court protection.

Aside from applying for the court receivership, Ssangyong's board also decided on a restructuring plan which includes cutting up to 30 percent of the salaries of its 7,200 employees for the next two years and an early retirement program, it said.

The SAIC did not announce any financial support for Ssangyong or plan to cut its staff.

Ssangyong, based in Pyeongtaek, Gyeonggi Province, suspended its share from trading in Seoul. Ssangyong is Korea's fifth-largest automaker.

The automaker, 51 percent owned by SAIC, needs to pay back 300 billion won ($224 million) to a group of local lenders including the state-run Korea Development Bank. KDB is the automaker's biggest creditor.

The Korean government and creditor institutions plan to discuss Ssangyong Motor later this week, studying the impact its fall would have on the local automobile sector, already facing difficulties amid a global market downturn.

Ssangyong reported a net loss of 98 billion won in the January-September period last year, as a global economic slowdown and drastically dropping sales of sports-utility vehicles.

The firm had made a fatal bet on SUVs in a period of rising fuel prices.

In 2004, SAIC bought a 51 percent stake in Ssangyong for about $500 million. It was the first direct investment by a Chinese company in a Korean company.

The labor union of Ssangyong strongly condemned the SAIC, saying it is not responsible and has no business ethics. It had said it would not comply with any restructuring measures and even threatened to strike if the owners of the company restructured their business.

Source: Koreaherald.com.kr

http://www.koreaherald.co.kr/NEWKHSITE/data/html_dir/2009/01/10/200901100030.asp

The situation in Ssangyong is major news in all media. But it's no suprise to me. with increased environmental awareness and ongoing world recession there is no future for a company offering gas-guzzling SUV's and big sedans. And I'm affraid Ssangyong is in no position and without enough resources to completely reshape its lineup and to adopt to current situation.

Perhaps Ssangyong could have avoided this downward spiral into extinction if the union was able to see beyond their noses. All the money lost because of their strikes, and unreasonable demands, may have gone into diversifying the model lineup.
Did anyone else detect an ongoing snobbery here that was directed toward SAIC by Ssangyong? So much for a show of gratitude for being bailed out by SAIC in the first place.

Good news, SAIC has got rid of the parasitic burden.

Same thing the UAW helped GM in to, IMO. Nasty attitudes when they should have not struck GM at all. Talk about biting the hand that feeds you. The UAW outlasted it's usefulness about 40 years ago.

Ssangyong expects to resume production on Fri

(Recasts with company official, backgrounds)

SEOUL, Jan 16 (Reuters (http://www.chinacarforums.com/forum/newreply.php?do=newreply&noquote=1&p=29905)) - South Korean sport utility vehicle maker Ssangyong Motor Co (003620.KS) expects to resume production on Friday, a company spokesman said, as the cash-strapped company fights to avoid bankruptcy.

Ssangyong, which last week filed for court bankruptcy protection, halted operations at all of its plants from Tuesday because of a shortage of parts.

"We see production resuming today as talks with parts makers are going positively," Choi Nam-hyun, a Ssangyong spokesman, said by telephone.

Earlier, local online news provider MoneyToday quoted an unnamed factory official as saying the South Korean unit of China's SAIC Motor Corp (600104.SS) would resume production from 0700 GMT.

South Korea's smallest auto maker has 213 direct vendors and some suppliers had stopped providing it parts as they were worried about whether they would be paid after a court decision Monday to freeze Ssangyong's assets and debts.

Ssangyong has been struggling with falling sales and liquidity shortages, with its December sales dropping 53 percent, underperforming a 13 percent drop in combined sales by South Korea's five automakers.

Its production suspension put local parts makers at risk and dealt a fresh blow to Asia's fourth-largest, but slowing, economy.

South Korea and Ssangyong's labour union have urged SAIC, which has a 51 percent stake in Ssangyong, to provide financial support to the firm.

Analysts reckon SAIC would be prepared to let the South Korean firm fail, given global auto overcapacity and slowing sales, especially after Ssangyong filed for court receivership.

China's top car maker paid $500 million for 49 percent of Ssangyong in 2004, and injected $45 million into the company late last month.

Automakers around the world have been hit by a sharp slide in sales as the financial crisis spreads, squeezing credit and consumer appetite for cars.

On Thursday, Standard & Poor's cut its credit rating outlook on Hyundai Motor Co (005380.KS) and affiliate Kia Motors Corp (000270.KS), citing slowing car demand amid a global recession. (Reporting by Cheon Jong-woo; Editing by Jonathan Hopfner)

Chinese automaker SAIC accused of hybrid tech theft by SsangYong

State prosecutors said Wednesday a controversial transfer of technology for gasoline-electric hybrid cars to the China-based Shanghai Automotive Industry Corporation (SAIC) from Ssangyong Motor in Korea, owned by SAIC, in 2006 violated laws banning the transfer of sensitive information.

The Seoul Central District Prosecutors' Office indicted seven senior engineers at Ssangyong on charges of leaking technology essential to develop gasoline-electric hybrid cars.

The indictment is seen as acknowledging SAIC stole the technologies, but during a briefing the office said it had no plans to take legal action against the Chinese carmaker.

The Korean government provided nearly half of the funds used to develop the new technology between 2004 and 2008, the legal grounds the prosecution used to state that Ssangyong's transfer of subsidized homegrown technologies was done without state permission.

In June 2004, Ssangyong Motor, the smallest automaker based in Korea, succeeded in developing the key "Hybrid Control Unit" (HCU) in cooperation with German company FEV.

HCU is a component that enhances energy efficiency in hybrid cars.

Amid a domestic car market downturn hitting the company, SAIC took over a 48.9-percent stake in Ssangyong for 590 billion won in January 2005, becoming the largest shareholder.

Facing difficulty in developing a similar part on its own, the Chinese company had allegedly pressured Ssangyong engineers involved in the development to share the technologies, using its status as major shareholder.

The seven accused succumbed and gave the technology to SAIC without state permission in July 2006, said the prosecutors.

"They received no financial favors in exchange," the prosecution said in a statement.

The investigation into the alleged leak began in January 2007 after a tipoff from the National Intelligence Service.

At the beginning of the investigation, Ssangyong denied the allegation. The scandal also sparked controversy that SAIC took over the debt-ridden Korean company to "steal" expensive technologies Ssangyong had developed, and then threw the company away.

Anti-Chinese sentiment reignited after the company suspended its cash infusion into Ssangyong, partially contributing to the firm's massive layoff of assembly workers earlier this year and the ensuing two-month-long bloody protest against management by fired workers at its main plant in Pyeongtaek, Gyeonggi Province.

Staying under bankruptcy protection, Ssangyong last week found its fine-tuned turnaround plan rejected by overseas creditors.

The final meeting determining whether the company will be revived will be held at the Seoul Central District Court on Dec. 11.

Hit by the protest, Ssangyong said it sustained 316 billion won in production losses. Ssangyong, whose product lineup is focused on sports utility vehicles (SUV), is reportedly negotiating with two or three foreigner investors for a possible sale.

http://www.koreatimes.co.kr/www/news/nation/2009/11/113_55305.html

Does anyone know what is the current state of affairs with SAIC and Ssangyong?

Does SAIC still own 51%? I haven't seen much new after Ssangyong went bankrupt (receivership) over a year ago...

According to Automotive News China, last year following a Korean court-ordered asset restructuring, SAIC's stake in Ssangyong shrank from 51 % to 11%.