Saturday, January 10, 2009

Ssangyong Motor Korea Auto Company running out of time

Ssangyong Car KoreaWe here the name Ssangyong many time in last week in the news, That remind us to the crisis of Automaker in Asia wost than we was think not just sale drop or side way quiet period but this is can be a started bankruptcy of Automotive Industry in Asia.

"We were running out of time as we discussed what we could do to avoid going bankrupt and deal with the acute cash flow crisis," Choi Sang Jin, Ssangyong's executive in charge of corporate planning, said by telephone Friday.

Shanghai Automotive Industry Corporation or SAIC is Chinese company partnered with General Motors and Volkswagen Group 70% of MG Rover Group and also 51% of SsangYong Motor Company in South Korea's.

Ssangyong is the smallest of the five automakers in South Korea. Company has fallen into a financial crisis amid slow auto sales and a dearth of operating funds from its parent, Shanghai Automotive Industry Corp.
In 2008, Ssangyong, which has a production capacity of 200,000 vehicles a year, sold 3,835 vehicles, down 63 percent from a year ago, Korea Investors Service Inc., a local credit risk appraiser, downgraded its rating for Ssangyong's long-term debt to junk bond status

The Korea Automobile Manufacturers Association has forecast that domestic sales by local automakers will drop 8.7 percent next year to 1.05 million units, the lowest since the financial crisis in 1998.
This is could be a big problem of Ssangyong Motor, We have to keep one's eye on Ssangyong and SAIC which way they will use to slove the problem of liquidity crisis. because they needed 600 billion won, or $451 million, in new financing to stay in business, according to Korea Development Bank.

This is hard time for Ssangyong to sustain the compamy in this crisis you can read alot of news reporter around internet.

-ASI report

picture : Ssangyong Actyon from wikipedia

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