South Korean automaker Ssangyong, a small player in the global automotive market, has idled its plants and delayed payment of salaries in response to a drastic lack of capital. But the government of South Korea says it’s not planning to bailout the automaker, which is controlled by China’s Shanghai Automotive Industry Corporation.
Earlier today, the state-run Korea Development Bank asked SAIC to provide $247 million to help save the Korean carmaker, which is best known for its sports utilities. If SAIC provided the money, the Korea Development Bank would also loan money.
The Ssangyong situation shows just how far Korea is willing to go to save its large automakers – and it provides a glimpse of how Chinese automakers will save their foreign assets during the global downturn.
Ssangyong is owned 51 percent by SAIC. The Korean automaker has had a tumultuous time marked by union-management clashes since the Chinese automaker took the controlling share, reports the Financial Times.
12/26, 9:02 AM
posted by:
The Stig
So llong.
12/26, 9:15 AM
posted by:
ochy38
that is one UGLY vehicle in the pic
12/26, 9:32 AM
posted by:
RaineMan
At least one government knows when to put its foot down.
Bailouts… just say no.
12/26, 11:07 AM
posted by:
shaver
They should call Jackie Chan.
12/26, 11:39 AM
posted by:
tyler_is_aero_tt
Yeah did that vehicle actually go on sale?
12/26, 12:01 PM
posted by:
Borat
Who would thought that epicenter of capitalism and free economy shifted to So. Korea?
12/26, 12:30 PM
posted by:
carstuff
Did you guys miss the fact that South Korea will not bail out this CHINESE owned company?? I think South Korea still has a few issues with China and I really doubt they would help out China in any way. Nothing to do with capitalism and free economy. Bottom line of the article is that China will not help out a company outside of their own country even if they do own part of it.
12/26, 4:54 PM
posted by:
yarddog82abn
@ carstuff…
I think your right… That makes more seance then buying Chinese food from a Korean restaurant…
Damn basters always forget the soy sauce…
12/26, 8:06 PM
posted by:
johnnycanuck
Yeah, well when the tide’s at its lowest the oddest things come to the surface. I’ve thought about buying a Subaru because for where I live and what performance I require a wagon or hatch with AWD and a manual transmission fits the bill perfectly. Two things however have kept me from plunking down my hard earned loonies: when you take away the AWD they’re pricey for what is essentially a middling Japanese effort in terms of quality and materials, and -for the most part- they’re just butt ugly. And this from the guy whose winter snowplow is a ‘98 Tracker, but it was cheap enough that I could also afford to put something else on the other side of the driveway that is far more aesthetically pleasing.
12/26, 8:12 PM
posted by:
johnnycanuck
sorry… disregard! I’ll pop this comment on the Subaru article where it belongs. Funniest part is I haven’t even had a beer yet. Then again that might be the problem. Maybe after a few that Korean thing in the picture will look better, but I doubt it.
12/27, 1:17 AM
posted by:
maxcar
seoul long
12/27, 7:33 AM
posted by:
1c3d0g
Good. No one wants to see their piece of crap vehicles on the road anyway.
12/28, 3:43 AM
posted by:
SageCallahan
If they make vehicles like the one in that pictures, it’s a good thing they didn’t get a bailout.
12/28, 1:57 PM
posted by:
VictorRaikkonen
Hopefully this will be the end of these clowns so that I do not have to see these ugly cars on Australian roads anymore.
12/28, 11:59 PM
posted by:
Mutant@DCX
Another DaimlerBenz rape and pillage, dump and run
12/29, 7:34 PM
posted by:
zoomzoomer
South Korean government, my optical senses thank you!