Ssangyong Motor, which has applied for rehabilitation procedures to the court, stops operating its Pyeongtaek plant for two days due to the refusal of supply from some suppliers. The picture is the All New Rexton released in November. Picture ssangyong motor
Ssangyong Motors announced on the 23rd that it would stop production at the Pyeongtaek plant for two days on the 24th and 28th. This is because some suppliers refused to supply parts, fearing that they would not receive payment for the supply. On the 21st, Ssangyong Motor applied for rehabilitation procedures (formerly court management) to the court and received a preservation disposition banning debt repayment.
Commercial bonds that accompany normal business activities are excluded, but some suppliers are not raising their concerns. Five companies that refused to supply were Hyundai Mobis, LG Hausys, S&T Heavy Industries, Borg Warner Ochang, and Continental Automotive. Hyundai Mobis supplies headlamps, and LG Hausys supplies bumpers. If these companies do not supply parts, all models of Ssangyong Motors will inevitably be affected.
An official from Ssangyong Motors said, “Because the autonomous restructuring support program (ARS) can be successfully carried out only when normal production and sales activities are maintained, the efforts of various small and medium-sized suppliers and creditors are not wasted due to the refusal of supply by large parts makers. I am asking to join.” The official added, “In the case of small and medium-sized business partners, they have been told to come up with a countermeasure so that they can continue to deliver, rather than refusing to deliver.”
Ssangyong Motor is currently negotiating with partners to resume supply. Ssangyong’s plan is to resume production as early as the 29th.
Meanwhile, the Ssangyong Motors union said, “We do not oppose the rehabilitation procedure that guarantees employment.” “The application for the ARS system at the same time as the start of the rehabilitation procedure has a policy purpose that the sale can be concluded early through an institutional agreement to secure employment. ” He then emphasized, “I will not withdraw if layoffs that distort the value of labor-management win-win are carried out.”
Reporter Park Seong-woo [email protected]