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Downturn hits Ssangyong hard

 

Korean carmaker says falling sales have led to cash shortages and it can't pay workers' wages.

Ssangyong has run out of money to pay its workers their December salaries and says it’s more than $150 million in debt.

The Korean outfit, which makes SUVs, light commercial vehicles, MPVs and some cars, is the latest victim of the global economic downturn and falling car sales.

Ssangyong sales in Korea fell by more than a third this year, causing widespread dealer closures.

It told workers by letter that because of a “lack of operating funds for December, it is impossible for the company to pay salaries any longer.”

Parent company, Shanghai Automotive Industry of China, is said to have turned down Ssangyong’s request for emergency money.

Korean newspaper Chosun said the Ssangyong executive committee planned a protest rally against its Chinese management.


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