Although we've heard a lot of reports claiming that global automakers may file for bankruptcy due to the financial crisis, none of them actually got so far, with governments or majority share holders brings infusions of cash to rescue the companies. Unfortunately for fans of South Korean company SsangYong, the automaker has just announced that it will halt all operations and shut down its production facilities after its liquidities weren't enough to cover the December bills, taxes and payroll.
But more importantly, the Shanghai Automotive Industry China, formerly known as SAIC, refused to bring new financial resources to the Korean carmaker after SsangYong's executives criticized the Chinese majority stake holder, asking it to leave the company, GlobalMotors informed. SAIC currently holds a total stake of 51.3 percent, the aforementioned source added.
SsangYong will now have to close the doors of all its production facilities, with around 8,000 employees to be let go just before Christmas (2,500 white collars and 5,500 production employees). The South Korean manufacturer has unpaid debts of 100 billion WON (that's almost 77 million American dollars).
The executive board have already confirmed plans to organize a protest against the majority owner in front of the company's Pyeongtaek plant in Gyeonggi Province, GlobalMotors explained, but no further details were provided.
SsangYong's sales adopted a descending trend ever since the beginning of the economic crisis, with the most important decline recorded in November 2008 when deliveries dropped 63 percent. Total sales between January and November 2008 were down 34.5 percent when compared to the same period of the previous year.
But more importantly, the Shanghai Automotive Industry China, formerly known as SAIC, refused to bring new financial resources to the Korean carmaker after SsangYong's executives criticized the Chinese majority stake holder, asking it to leave the company, GlobalMotors informed. SAIC currently holds a total stake of 51.3 percent, the aforementioned source added.
SsangYong will now have to close the doors of all its production facilities, with around 8,000 employees to be let go just before Christmas (2,500 white collars and 5,500 production employees). The South Korean manufacturer has unpaid debts of 100 billion WON (that's almost 77 million American dollars).
The executive board have already confirmed plans to organize a protest against the majority owner in front of the company's Pyeongtaek plant in Gyeonggi Province, GlobalMotors explained, but no further details were provided.
SsangYong's sales adopted a descending trend ever since the beginning of the economic crisis, with the most important decline recorded in November 2008 when deliveries dropped 63 percent. Total sales between January and November 2008 were down 34.5 percent when compared to the same period of the previous year.