Cash-strapped SsangYong submits self-rescue plan as it looks to bring investor on board
This even as parent company,
has been unable to find a buyer for SsangYong over the last 10 months, pushing the company into a crisis. Even as it struggles under court receivership, Korean car maker, SsangYong Motors looks to complete the sale process by finding a new majority investor by this October.
The rehabilitation plan includes half of SsangYong’s staff taking unpaid leave up to two years in a bid to avoid retrenchment. “This sort of a plan will reduce potential job cuts but will definitely bring down labour costs. Workers availing of such unpaid leave would be allowed to return to work once the company starts making profits”, said one of the sources adding that the labour and management would hold wage negotiation talks every three years, instead of the earlier two.
SsangYong is expected to invite tenders by next month at the consent of the union. The court-appointed auditor Ernst & Young Hanyoung, is to oversee the sale process, according to sources.
With the increased push for electric vehicles globally , SsangYong is likely to see more EV bidders too in the fray. While US Based Haah Automotive continues to be in the game, others including electric bus maker Edison Motors and a consortium of EV makers along with a PE fund are also showing interest in picking up a stake.
