Ssangyong Motor’s difficulty in attracting investors has made it difficult to pay normal monthly wages. The photo shows Ssangyong Motor’s Pyeongtaek factory. [뉴스1]
– Ssangyong Motor’s liquidity crisis is deepening. On the 22nd, Ssangyong Motor and the corporate union, the first union, held a briefing session for delegates at the Pyeongtaek factory, and agreed to discuss the adjustment of wages this month. An official from Ssangyong Motors said, “Since we paid cash for materials for the operation of the line, it became difficult to normally pay this month’s salary (due to insufficient cash).” said.
Last month, Ssangyong Motors applied for corporate rehabilitation procedures to the Seoul Rehabilitation Court and at the same time initiated autonomous restructuring. During this period, which is applied until the end of the next month, normal business activities are possible without entering court management. However, it is observed that Ssangyong’s cash flow has deteriorated as some suppliers, who felt a sense of crisis this month, requested to pay for materials in cash.
Earlier, after applying for rehabilitation procedures, Ssangyong Motor stopped operating its Pyeongtaek plant for two days because parts makers affiliated with large companies such as Hyundai Mobis refused to supply them. Afterwards, Ssangyong Motor resumed operation of the factory by receiving parts procurement on the condition of cash payments to these parts makers.
The key to Ssangyong Motor’s autonomous restructuring is finding new investors. To this end, Ssangyong’s major shareholders, Mahindra & Mahindra, have been negotiating with US auto retailer HAAH Automotive since last year to overtake a significant share of Ssangyong Motor. It is known until now that more than half of the 75% stake in Mahindra is transferred to HAAH after first making potatoes. However, the two sides are known to have disagreements on the price of potatoes, the acquisition price, and Mahindra’s role after the transfer of shares.
The 22nd was the day when the industrial union was scheduled to give a position on the non-strike before the surplus, which Korea Development Bank Chairman Dong-geol Lee requested to the union. However, the union’s position scheduled for the day is expected to be withheld as they cannot receive normal wages this month.
Earlier on the 12th, during an online press conference, Chairman Lee Dong-geol said, “(Ssangyong Motor Union) should stop any industrial action until a surplus is achieved.” “(If not), there is no single won.” However, the Ssangyong Motors union was controversial in that it had never engaged in any industrial action after the 2009 strike.
![On the 21st, union members from the Ssangyong Motors branch of the metals union visit the headquarters of the Industrial Bank of Korea on the 21st and protest the remarks of Chairman Lee Dong-geol's prohibition of industrial action. [뉴스1]](https://i0.wp.com/pds.joins.com/news/component/htmlphoto_mmdata/202101/22/3e46789c-295b-4f6d-bbad-cf0dd10c0a6d.jpg?w=900&ssl=1)
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On the 21st, union members from the Ssangyong Motors branch of the metals union visit the headquarters of the Industrial Bank of Korea on the 21st and protest the remarks of Chairman Lee Dong-geol’s prohibition of industrial action. [뉴스1]
– In this regard, Ssangyong Motor’s branch of the metals union visited the headquarters of the Korea Development Bank on the 21st to protest Lee’s remarks. “The crisis of Ssangyong Motors is the result of poor management of Mahindra and Ssangyong Motors’ management,” said Deuk-joong Kim, head of Ssangyong Motors. Said.
Reporter Kim Young-joo [email protected]
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