The former chief executive of Ssangyong Motor has apologised to employees for the company’s troubles. Choi Hyung-tak stepped down as CEO when the company last week filed for bankruptcy in Korea (a process broadly similar to that applying in the US – so that the firm can continue trading under the direction of a court).
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SAIC-owned Ssangyong has halted production at its only assembly plant indefinitely since applying for receivership, as a parts shortage has taken hold.
“I would like to express my deepest apologies to employees and their family members for applying for court receivership,” Choi Hyung-tak wrote in a letter to employees.
“Also, I feel an overall responsibility for making the difficult decision amid a liquidity crisis,” Choi said.
He added that he is confident, however, that Ssangyong could overcome the current crisis, Yonhap reported.
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By GlobalDataSsangyong is being viewed in South Korea as the auto industry’s first high-profile victim of the global economic slump.
Financial regulators and creditors, led by state-run Korea Development Bank, have urged SAIC to help rescue the ailing carmaker. But SAIC has shown little interest in bailing out its affiliate, the Yonhap report said.
If a Seoul court accepts the application for receivership, SAIC will lose its management control but retain its 51% stake in Ssangyong, the report added.
