Without Ssangyong, SAIC Roewe SUV has to wait

Shanghai August 27 (Gasgoo.com) After Ssangyong Motor picked India's Mahindra and Mahindra as its preferred buyer, SAIC, which bought a 49% stake of Ssangyong in 2004 for $500 million, has recently sold out the rest 3.79% stake in the company, along with Ssangyong's SUV technology, while its Roewe SUV's launch has to be delayed now, cheshi.com reported Friday.

SAIC's acquisition of SsangYong Motor is based on its global development strategy, but both parties cannot keep harmonious labor relations. After buying into the South Korean SUV-maker, SAIC paid more attention to the technology transfer, so the latter estimated that it would likely be abandoned ultimately, according to early sources.

Just as expected, the Chinese automaker has been suffering from the purchase and failed to help the Korean carmaker get out of difficulties. In mid-July 2010, SAIC has diluted its holdings in SsangYong Motor to 3.79%. During the six-year cooperation, SAIC invested a total of 4.2 billion yuan ($618 million) in restructuring SsangYong and barely got anything in return.

Without SsangYong Motor's SUV technology, many difficulties will be lying in the way of developing SUVs for SAIC whose R&D strength is of sedan but not of the SUV.