SsangYong Allowed to Continue Restructuring Plans
Unfortunately, going through such a complex restructuring process would surely make a lot of victims among the company's employees, as SsangYong plans to rely its revival plan on job cuts. Furthermore, the South Korean manufacturer will attempt to refresh its product range with new and more crisis-aimed products, including the C200 model displayed to the world at the Seoul Motor Show.
According to a release by SsangYong, the court agreed with a report by Samil PricewaterhouseCoopers that claimed the South Korean manufacturer "had a greater value as a going concern than its liquidated value." As a result, the court gave the green light to SsangYong's restructuring process and ordered the company to submit its full survival plan by mid-September.
"This is the news we were hoping for and it means that SsangYong now has the lifeline it needs to implement major changes. The future will continue to be difficult, as it is throughout the auto industry, but the result should mean a leaner, much more efficient SsangYong," Paul Williams, managing director of distributor Koelliker UK Ltd., commented on the court's decision.
"We already know that there will be a broader range of passenger cars using the latest petrol, diesel and hybrid technology, and the first – the C200 – will go into production later this year. Our dealers can now go forward with renewed confidence."