SAIC Motor says to improve Ssangyong ties

SAIC Motor Corp, China's biggest car maker, will continue to expand cooperation with its 51 percent-held unit Ssangyong Motor Co despite the slump in the global auto market, an SAIC spokeswowan said on Friday.

South Korea's Edaily reported, quoting the Chinese ambassador to the country, that China would lend active support to Ssangyong, which reported a 62.6 percent slump in vehicle sales to 3,835 units in November from a year earlier.

The report pushed Ssangyong's shares up 4.72 percent to 1,110 won by midday, outperforming a 4.10 percent fall of the main index KOSPI .KD11, as some investors hoped for a capital injection from the Chinese parent.

The SAIC spokeswoman told Reuters that SAIC could not make any unilateral decision on a cash injection, but its continued cooperation with Ssangyong in different areas, including research and development, would help improve Ssangyong's cash flow.

"Our basic approach is to expand synergies between the two sides," said the spokeswoman, who declined to be named under briefing rules.