WORLD> Asia-Pacific
|
WORLD> Asia-Pacific
|
|
SKorea's Ssangyong Motor may delay paychecks
(Agencies)
Updated: 2008-12-22 20:18 SEOUL, South Korea -- Ssangyong Motor Co., South Korea's smallest automaker, said Monday that it may not be able to pay salaries on time this month amid financial pressures.
"The company said it may be delayed," Ssangyong spokesman Choi Nam-hyun said, referring to the company's Dec. 25 payday. He cited the slowing automotive industry as well as fallout from ongoing banking and financial pressures. Ssangyong, majority owned by China's Shanghai Automotive Industry Corp., makes the Rexton, Actyon and Musso SUVs as well as the Chairman luxury sedan. The company's labor union said on its Web site it has heard that SAIC refused to provide a cash infusion to the company due to the union's demand that management step down. Choi said that negotiations with SAIC for new capital, which he described as a regular process meant for new model development, were in progress. He said the company's management has not told the union that its actions may negatively affect SAIC's decision to provide capital, but thinks that is the case. Ssangyong swung to a net loss of 28.2 billion won ($21.6 million) in the three months ended Sept. 30 from a profit of 1.2 billion won in the same period last year. Ssangyong has annual production capacity of 200,000 vehicles. Its sales during the third quarter slid 17.4 percent to 26,321. |
