Automotive News

Shanghai, April 23 (Gasgoo.com) Korean carmaker Ssangyong Motor, a subsidiary of Chinese auto giant SAIC, decided to lay off 37%, or about 2,700 people, of its workforce by the end of June. By then the restructuring of Ssangyong will be completed and the company is likely to get normal, said Lee Yu-Il, director of Ssangyong Motor yesterday.

"It seems the company will run out of cash at the end of June. The 100 billion won will be needed for the severance pay if the company should be disbanded for reorganization," Lee said. He noted that the Korean government should provide finance rescue for Ssangyong, but unfortunately, the government hasn’t respond.

"Ssangyong is far too slow, "Lee Yu-Il criticized, referring to Ssangyong’s problem after practical investigation." When I stood on the production belt, I even couldn’t feel the move, but when I stepped on the Hyundai’s conveyor belt, the speed could make me dizzy. The production capacity has significantly dropped in Ssangyong," he explained.
 
SAIC, the state-owned Chinese car company, now is trying to extract itself from its involvement with Ssangyong, the bankrupt Korean car company in which it held a majority stake.