SAIC subsidiary SsangYong Motor has reportedly asked for a cash injection from its Chinese parent company.
“We desperately need massive new capital because debts will mature in April next year,” SsangYong’s chief executive Choi Hyyung-Tak was quoted as saying in a labour union newsletter.
Choi warned that SsangYong would face “a critical period” early next year, citing around 100 billion won (68.3 million dollars) in losses in the first nine months of this year.
SsangYong spokesman Chung Mu-Young confirmed Choi’s comments to news agency AFP. But he said the funds were needed to develop a new model and were not to meet a liquidity crisis.
Chung said the union and management were holding talks about a possible shutdown of assembly lines for two weeks in December amid slow demand. The firm also plans to freeze new hiring and make a 10% cut in executive bonuses, AFP reported.
SsangYong, reported a net loss of 28.2 billion won for the third quarter, its fourth consecutive quarterly loss.
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