South Korea's cash-strapped Ssangyong Motor Co said on Sunday it plans to consider a liquidation plan after the management failed to reach an agreement with its union over a job cut plan.
Ssangyong, the country's smallest automaker under court receivership, in April announced survival measures including a plan to slash 36 percent of its workforce, or 2,646 employees.
Some 1,670 employees left the company but about 600 dismissed workers have been occupying Ssangyong's factory for 73 days, stopping its production lines and costing the company some 300 billion won ($245.4 million), the company said.
If the fired workers keep stopping production, the company has no choice but to mull a liquidation plan, it said.
"It is inevitable to consider applying for a rehabilitation plan on a premise of a liquidation," Ssangyong said in a statement.
Once the court decides a liquidation, it will sell the company's assets and will distribute the proceeds to creditors, company officials said.
In May, the Seoul Central District Court ordered Ssangyong to draw up a survival plan by mid-September.
The maker of the Rexton sport utility vehicle is 51 percent owned by top Chinese car maker SAIC Motor Corp.
