Ssangyong's Chinese Executives Quit and Go Home
Ssangyong is currently going through a court receivership process, after its shares dropped 62 percent in three months. The receivership process, granted to the Pyeongtaek based company, protects Ssangyong from creditors and stops it from entering bankruptcy.
The Korean SUV manufacturer is 51 percent owned by the Shanghai Automotive Industry Corporation (SAIC), who have chosen to give up management rights over the company in an effort to avoid liquidation.
The Chinese staff's departure ends SIAC's four year long control over Ssangyong. SAIC says it will however retain all its assets in the Korean company, as it hopes a “practical revival plan” will help put Ssangyong back on track.
"A revival requires the company's own efforts, including strong restructuring, and the concession of creditors. If its own effort is not enough, the revival process will be abolished," the receivership court said in a statement quoted by just-auto.com.
Lee Yoo-il, former president of Hyundai Motor and Park Young-tae, Ssangyong's director of finance planning were appointed by the court to manage the company during the procedure. One of the ways through they will try and save the day is the release of the new crossover vehicle named C200.
A plan that might prove hard to sustain, as the manufacturer doesn't have the resources to pay suppliers and maintain its plant operational. The company still faces liquidation, if the measures taken by the two managers are deemed nonviable by the court.