Ssangyong has resumed vehicle production after workers ended a 77-day factory occupation last week.
Company director Choi Sang Jin told reporters that the South Korean manufacturer plans to build 74 Chairman sedans, Rexton SUVs and other models today at the Pyeongtaek plant and that it now expects to sell as many as 33,000 vehicles this year.
Sssangyong, which entered bankruptcy protection in February, has incurred KRW316 bn (US$256m) in lost production since the occupation started in May when fired workers took over the factory to protest job cut plans. Choi added that the company is still on track to meet the court’s Sept 15 deadline to submit a recovery plan.
The workers protest paralysed production at Pyeongtaek, causing a 99% plunge in monthly sales in July and making it more difficult for the company to exit court receivership.
Chinese parent Shanghai Automotive Industries Corp. and the South Korean government rejected a bailout of the automaker, leaving it short of cash. Ssangyong plans to borrow KRW130 bn (US$100m) of new loans from the Korea Development Bank, the state- run lender and Ssangyong’s main creditor, so it can pay wages and severance for workers.