Shanghai Automotive Industry Corp. (SAIC), the preferred bidder for Korea’s No. 4 carmaker SsangYong Motor Co., will guarantee secure jobs and steady investment in the company, its top executive said yesterday, according to The Korea Herald.
“We will maintain and improve Ssangyong’s current product bases here and make investment to grow the company’s business in Korea,” said Hu Maoyuan, Shanghai Automotive’s president, after he signed a memorandum of understanding to buy Ssangyong’s 48.9 percent stake in Seoul yesterday.
Hu also said his company will promise job security for Ssangyong’s management and workers and develop the company’s research ability steadily.
Hours after his remarks, Ssangyong workers and management resumed wage negotiations, with both sides expressing a desire to reach a tentative agreement by today.
In his remarks, Hu emphasized dual benefits from the acquisition.
“Ssangyong will be able to use our strong local base to expand in the Chinese market. At the same time, we will be able to use Ssangyong to strengthen our presence in the global car market,” he said.
Ssangyong creditors said Shanghai Automotive will soon begin due diligence on the Korean carmaker. The acquisition is expected by the end of October.