Ailing Ssangyong has said that it has received a US$45m cash injection from parent SAIC.
The company faces a liquidity crisis on lower sales as well as the threat of a strike from unionised workers, who are opposed to job reductions as part of a proposed restructuring.
Ssangyong reportedly wants plans to slash more than 3,000 jobs, including half of some 5,200 assembly line workers.
Ssangyong has announced in a statement that SAIC completed payment of US$45m in late December to help the automaker develop new products and improve its cash flow.
“This showed SAIC’s resolve to (help) Ssangyong’s survival,” the statement said.
Ssangyong said it will hold a board meeting on Thursday to address the company’s financial problems.
Analysts say SAIC’s action may help to ensure that Ssangyong’s main creditor, the Korea Development Bank, also assists the firm with loan finance.
Meanwhile, reports in Korea suggest that Ssangyong’s union leader is aggressively calling for a strike action.
“Only by a landslide vote for a strike can we defend ourselves and thwart SAIC’s conspiracy,” Han Sang-kyun, the union’s leader, told members in a statement.
“Let’s show our strength against the Chinese owner that has cheated us over the past five years,” Han said.
The union’s some 5,200 members are voting Monday on the strike plan. Balloting is due to close on Tuesday.
Han also threatened to disclose allegations of illegal accounting and technology transfer by SAIC.
