Ssangyong has no plan to cut output in Korea, SAIC declares

Shanghai. December 5 (Gasgoo.com) – Shanghai Automotive Industry Group (SAIC)-controlled Ssangyong will not halt the production of any SUV models in S. Korea and the company has no plan to cut output in S. Korea, China Securities Journal reported today.

 

Last week, the Seoul Economic Daily newspaper quoted an unidentified union leader as saying that the automaker would suspend the SUV lines, namely Rexton and Actyon SUV models by the end of next February.

 

However, an unnamed SAIC official clarified that Ssangyong does have a plan to suspend the daytime production, but the nighttime shift remains unchanged.

 

SAIC president Chen Hong said that Ssyangyong has no plan to cut capacity in S. Korea. “It is our hope that by expanding business operations in emerging overseas markets, like China and Russia, Ssangyong hopes to reduce its sourcing and production costs and then boost output in S Korea.” 

Korean media and public have concerns that Ssangyong may outsource job opportunities to Russia and China by establishing plants in these two countries. In response to this public sentiment, Chen Hong said, Ssanyyong will boost its sales after adding new capacities, but it will not cut capacity in Korea.

Specializing in SUVs and passenger sedans, Ssangyong is the smallest of South Korea's five carmakers. The company was acquired by China's Shanghai Automotive Industry Corporation in 2004. Last month its vehicle sales dropped 10.3 percent year-on-year to 10,526 units.