Ssangyong hopes to build cars in China

Zhang Haitao, Executive Vice President of Ssangyong Motor Co, confirmed recently it has submitted an application to the Chinese government for assembling cars in China, and the company will complete its production lineup to cover the A  to C –range vehicle market.

"SAIC is also planning to develop diesel engines based on Ssangyong's technologies in the future but will not launch diesel engines under both its Rowoe and Rover brands", said Zhang in an interview.

Currently Ssangyong, Korea's fourth-largest automaker, is expanding aggressively abroad and hopes to make a foray into the Chinese market through cooperation with its biggest shareholder SAIC. In 2004, Shanghai Automotive Industry Corp (SAIC) has spent some US$500 million to acquire a controlling 48.9 percent stake of the debt-laden Ssangyong. The deal has helped SAIC enhance its development capacity and gave the South Korean firm a foothold in China.

Ssangyong has an annual production capacity of 180,000 luxury sedans and sport utility vehicles (SUVs) in South Korea, but it is selling fewer sports utility vehicles in recent years, as higher taxes on diesel and slower economic growth are crimping demand. According to Zhang, the company will release the first of three new models in the second half of this year or in early 2008.