Troubled South Korean carmaker SsangYong took a significant step on the path to restructuring when a Korean court confirmed that the manufacturer had a greater value as a going concern than its liquidated value; as readers will be probably aware the company filed for “Chapter 11” style protection from creditors back in January.
The company now has until mid-September to submit full restructuring plans to the court; much of this is said to be already in place, and includes a over a 30% reduction in workforce and a new model programme.
Paul Williams, managing director of distributor Koelliker UK Ltd. said: “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. 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.”
The C200 is Ssangyong’s new compact urban vehicle which has been shown at both the Seoul and Barcelona motor shows. Styled in Europe the C200 is set for production later in the year.
