SsangYong news update
February 15th, 2009 by Richard Aucock
SSANGYONG dealers have been assured of no change in trading conditions, by the company’s UK MD, Paul Williams.
Last week, a South Korean court placed the international parent of the business into receivership.
But Williams has warned dealers not to be alarmed. Rather than being a conventional UK form of receivership, the South Korean system is modelled on US Chapter 11 status.
This gives SYMC protection from creditors, he says, and time to plan a resuscitation plan. It is a positive step, ‘paving the way for radical restructuring, and the opportunity of forging a stronger and leaner company with a more diversified product range.’
‘This is very good news after a worrying period,’ said Williams.
The boss also took the opportunity to praise dealers. ‘I want to thank our staff and dealers for their faith and confidence in toughing it out and getting on with the job.
‘Restructuring won’t be easy, but we now look forward to the continuing new model development programme and a fitter and stronger SsangYong, better able to meet the challenges of tomorrow.’
SsangYong has been badly hit by the international credit crunch, which has led to falling demand. High energy costs have not helped.
But Williams said the future was more positive. ‘SYMC was profitable in 2007, and as we gradually work our way out of this global recession, there’s every reason to look forward to a better future.’