Struggling SUV specialist SsangYong Motor on Sunday filed a bailout programme in court which was notable for its absence of support from Chinese parent SAIC.
The plan handed to the Seoul Central District Court to revive Ssangyong, which filed for court receivership earlier this month, has no proposal for a cash injection from SAIC, industry sources told The Korea Times.
There reportedly was no specific comment that SAIC would pay back its unpaid royalties for Ssangyong’s technology for sports utility vehicle production. Ssangyong officials told the paper the money would be paid in several stages, regardless of the bailout plan, because the payment should be made according to the signed contract between the two companies.
SAIC’s lack of commitment in the plan seems to indicate that the Chinese auto giant’s intention is to abandon its Korean unit, the paper suggested.
The company could reinforce its bargaining power as the main stakeholder even under the court receivership if it provided assistance, industry sources told the Korea Times.
