South Korean Government Aids Ssangyong in Finding Investors
The aforementioned automaker has a current new model in the development stages in which Ssangyong has put a lot of hope for returning the company on the road to profit. The model in name is the C200 sport utility vehicle. Because of the troubled times the South Korean car maker saw recently, the launch of the new C200 model was delayed from sometimes this year to 2010.
According to the Korea Herald (via just-auto.com), the South Korean government wants to aid the auto company and its workers, but will not provide direct financial aid until reliable investors are identified. The same source said the government will try to take measures in order to aid Ssangyong suppliers find new business opportunities with both domestic and overseas car manufacturers.
The caution with which the South Korean government handles the Ssangyong subject, could have been noticed in the Minister of Knowledge Economy (MKE) Lee Youn-ho's take on the matter. He advised there are still many steps to be made at Ssangyong before the company can return to normality and that the company's restructuring plan must be closely monitored.
The same South Korean newspaper said that financial aid from Ssangyong's main creditor, the Korea Development Bank (KDB) is still unlikely, as the earlier mentioned bank doesn't seem to like the C200 SUV project very much. The bank will, however, review Ssangyong's request for restructuring plans.