Tuesday, December 23, 2008

SsangYong can't pay its staff (SK)


Korean carmaker, SsangYong cannot afford to pay its December salaries and has confirmed it’s more than £50m in debt.

“Due to lack of operating funds for December, it is impossible for the company to pay salaries any longer,” SsangYong told workers in a letter last Friday.

Korea’s smallest manufacturer turned to its parent company Shanghai Automotive Industry in China for emergency funds, but the request was refused. The firm employs about 8,000 staff in Korean. Shanghai Automotive bought the majority stake three years ago.

The SsangYong executive committee now plans a protest rally against its Chinese management.

SsangYong sales in Korea have dropped by more than a third in the last year. It’s already shut 60 dealers in the country. In the UK, SsangYong has sold 595 cars to date this year, compared with 1,299 during the same period last year.

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