SAIC has said it will protect its ‘legitimate rights’ in defending itself against a lawsuit filed by smaller shareholders of its South Korean unit, Ssangyong Motor.
The lawsuit by the shareholders – who are seeking US$730,000 compensation – alleges that SAIC stole Ssangyong technology on the cheap through its acquisition of a controlling stake (51%) the small Korean maker.
“We feel regretful about the investment environment in South Korea,” SAIC, China’s biggest car maker, said in a statement. It hasn’t received any official notice of the suit yet, the statement added.
The shareholders also allege that SAIC failed to keep its promise to invest US$1 billion in Ssangyong.
SAIC earlier said it would work with all parties, including the government and labor unions to normalize Ssangyong’s operations and help it ride out the recession after the unions rejected its restructuring proposal which included job cuts and cost reduction.
SAIC also dismissed allegations that it stole technologies from Ssangyong. “All the technology exchange after the merger were based on contracts, which are in line with international practice,” SAIC said, adding it focuses on hybrid gasoline engines rather than Ssangyong’s hybrid diesel engines.
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