Ssangyong mulls idling production line again

Ssangyong Motor Co., which recently applied for court receivership to avoid bankruptcy, said Monday it was considering temporarily idling its production lines this week again amid a parts shortage.

"We are considering shutting down all lines from Thursday," said Chung Mu-young, a spokesman at Ssangyong.

Ssangyong will negotiate with its labor union on Tuesday before idling its only assembly plant in Pyeongtaek, about 70 kilometers south of Seoul, according to the spokesman.

Ssangyong, 51-percent owned by China's Shanghai Automotive Industry Corp. (SAIC), applied for a court receivership on Jan. 9 amid a worsening liquidity crisis as the Chinese parent decided not to pump into fresh capital into the ailing automaker.

Since applying for receivership, Ssangyong had halted production for four days as subcontractors stopped supplying parts, but partially resumed production last week.

The Seoul Central District Court has barred creditors from selling Ssangyong's assets, the first administrative step before it makes a decision on whether to accept Ssangyong's receivership early next month.

Creditors, led by South Korea's state-run Korea Development Bank, have called on SAIC to help rescue Ssangyong, but the Chinese company has shown little interest in bailing out its affiliate.