SsangYong secures creditor protection, for now
February 9, 2009 by Matt Brogan
SsangYong has secured protection from creditors, for now, but may struggle to revive in the short term as it struggles to find new owners.
The Chinese-owned manufacturer had bankruptcy protection filing approved over the weekend allowing it another chance at life after it posted its fourth loss-making quarter in a row.
But analysts say despite the reprieve, the manufacturer is unlikely to turn itself around given a trend away from less fuel efficient SUV models, a staple of the SsangYong brand.
“Who’s going to buy SsangYong? No one is sure whether to sell cars under SsangYong’s badge even after changing owners,” Sunny Sohn, autos analyst at KB Investment & Securities, said earlier.
In January, Russian car maker Sollers, previously Severstal-Auto, said it was seeking to buy the rights to produce SsangYong’s SUVs.
Analysts have said SAIC could be prepared to let SsangYong go, given the industry’s overcapacity and sliding sales, but it would work to try and normalise the company.
“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 court said in a statement.
Any decision to close up SsangYong, which directly employs 7,100 people, could have far greater reaching implications with more than 200 suppliers that employ around 90,000 workers.
The court appointed Lee Yoo-il, former president of Hyundai Motor Co, the country’s leading automaker, and Park Young-tae, SsangYong’s director of finance planning, to manage the company.
Under court management, SAIC will relinquish control of SsangYong but maintain rights to some other SsangYong assets.
“SAIC cannot sell or transfer SsangYong’s assets and make other major management decisions, although the top stakeholder can sell its stake outside the market,” Hong said.
SAIC has estimated its 51 percent stake in SsangYong was worth around $271 million as of end-November. The Chinese firm paid $500 million for 49 percent of SsangYong in 2004, and pumped in another $45 million late last year.
SsangYong shares have been suspended since January 12, when it filed for bankruptcy protection.
Print it: 
They actually make bullet proof cars. I think design is the major concern. Mechanically sound and with great on road performance it can not be argued with.
They’re arguably the ugliest cars on the road at the moment. They should now focus on designing something that actually looks half appealing, if not, bye bye saangyong…
At least they provided us with something to laugh at.
Bet their sorry they lost the contract for MB140 vans.. although where is Mercedes going to source its vans from now?
Salesman, I don’t think you’d think they were that bulletproof if you had to do their warranty claims.
keep making ugly mother cars like that and you deserve to get shunted from the car industry…solong sanyong…..
Bullet proof haha
Thats the funniest thing i have heard all week
The Salesman must be a SsangYong salesman. That will probably explain it :)
I have a bit of a soft spot for Ssanyong – but not soft enough to ever buy one.
Dan,
No, i don’t sell Ssangyong. But i do know some who own them that rave on about reliability. If you get behind the wheel of one I think you would be impressed. I quite like the Kyron.
Hey Salesman, you’d better snap one up fast before they’re all gone :)
Reckless1, Very funny. If i was to buy one i reckon i might wait until the liquidation sale. Like they did with MG and Rover. I wonder if I can get “the salesman” number plates?
@Salesman..
One of my mates made a mistake of buying, the gearbox on they brand new DEC 2008 model died on the second day. The car didn’t even last for complete 24 hours.
They warranty is a joke as well.. the dealer actually asked him to pay $500 to get it fixed (WHAT!!!!).
Oh yeah.. bullet proof… if you have candy bullets!
I am sure if you talk to enough people you would find enough bad reports to fill a blog on any car. I know an Audi TT driver that just had his 3rd air conditioner compressor fitted. A VW passat driver who has sensor problems. A Focus drivers who can not get the car to come out of park. Grow up Sunny. Every car has problems.
they made a bad impression on their MB100 van total knock out doors are thin very poor quality and because of that unit every Sangyong car to me is junk now
Actually Salesman, I used to run a workshop and do the warranty claims for a Daewoo dealership that took SSAngyong on after Daewoo dumped them (as if being dumped by Daewoo wasn’t enough of a warning) and believe me there were some very good ones made, about one in every 10 was a good one. Then they decided to come up with individual designs….. Remember JACKO was an INDIBLOODYVIDUAL…..
You are missing my point Salesman..
I am not saying that euro cars don’t have a problem.. what I am saying is that they carry a reputation to back the product in case anything goes wrong.
In my friend’s case it never happened. I have personally seen all the trouble that they had to go through to get their brand new car fixed..
And its not like they saved a whole lot of money by getting Saangyong also.
Sunny i get your point. I am not defending Ssangyong but I refuse to believe any manufacturer would deliberately make a terrible car that is to be distributed around the world and expect to stay in business, unless it is a deliberate act of sabotage.
Frontman, off subject but were you at RSA?
“Sunny i get your point. I am not defending Ssangyong but I refuse to believe any manufacturer would deliberately make a terrible car that is to be distributed around the world and expect to stay in business, unless it is a deliberate act of sabotage.”
No, not sabotage, just the good old case of incompetence Salesman :) For some it is just beyond their ability to build a good reliable car.
Salesman NO but know people who unfortunately were ;-)
Its true Dan, Salespeople dont build cars. I dont see the relivance to the Ssangyong
I was with RSA for a few years. Although i was gone years before Ssangyong was introduced.
There can’t be much wrong with Ssangyong, after all BMW copied their second-ugliest car (the Actyon) to make the X6. Of course the ugliest one was the Stavic, which no doubt BMW will be copying next.
I was with RSA for a few years.
yep selling protons I believe……
Now that’d be scary……then Mazda’s then Kia would be my guess.
Remember ages ago I said I’d been around for a while :-)
sorry last comment was meant to have salesman c&p’d not hi comment :-(
Change the Design of all the Cars!!!
facelift on all models
will increase there car sales more than 50% for sure
Frontman,
Corrent. You know who i am by the sounds of it :)
Scary part is you won’t know who I am, but we have met. Because of my job these days I’ll leave it at that. ;-) I actually picked who you were when I first ventured here around October / November and you and Dan were have I discussion.
Ah Ha, and you stayed quiet all this time. Small world the car industry. I will have to look for more clues in your threads. If you see me in your travels make sure you say G’day…….
At this moment i am making a list.
If you google my name and add Kia you will find me quickly.