Employees are coming to work at Ssangyong Motors headquarters in Pyeongtaek, Gyeonggi-do. Photo = News 1
Ssangyong Motor(2,770 0.00%)350 small- and medium-sized parts suppliers in China appealed to conglomerate parts manufacturers to resume supply of parts.
On the 30th, the Ssangyong Motor Association, which is composed of Ssangyong Motor’s partners, issued a’Ssangyong Motor Business Partner’s Appeal for the Normalization of Ssangyong Motor’ And ask for support.”
Suppliers said, “Some large companies and foreign parts suppliers refused to supply parts due to the rehabilitation procedure, and Ssangyong Motors faced a crisis of discontinuing production.” Explained.
The Ssangyong Motors Association sent an official letter to its member companies the day before, saying, “We must trust Ssangyong to help with the rehabilitation through delivery and patience,” and requested a smooth supply of parts. The aim is to help Ssangyong Motor normalize its management through stable delivery, and through this, the partners should also coexist.
The cooperative said, “We agreed to receive 50% of the bills due in December in cash on the 29th and 30th of this month.” He added, “It is best for Ssangyong Motors to find a new owner and conduct stable business activities in order to maintain employment and continue management of the cooperative members.”
Previously, Ssangyong was Hyundai Mobis(255,500 +1.79%)(Head lamp) and S&T Heavy Industries(5,890 +2.08%)(Axle Assembly), LG Hausys(78,000 +2.50%)(Bumper), Borg Warner Ochang (T/C assembly), and Continental Automotive (combi meter), etc.
It is known that Hyundai Mobis and S&T Heavy Industries resumed supply of parts from the 29th, and LG Hausys also temporarily resumed supply and are in discussions with Ssangyong Motor. Ssangyong Motor is also in discussions with foreign parts makers Bog Warner Ochang and Continental Automotive to resume delivery.
However, some mid-sized companies were also informed of the suspension of delivery because they feared that the price would be excessive, and they are known to be requesting cash payments for previously delivered goods. Ssangyong Motor is planning to operate the plant normally by the end of the year after receiving inventory from parts makers under discussion.
The cooperative association stated, “Our partners will always spare no effort in cooperating with the national policy and the rehabilitation of Ssangyong Motors as members of the national automobile industry.”
Meanwhile, Ssangyong Motor’s president Ye Byung-tae said at a meeting with the union on the 22nd, “The reason the sale is slow is due to India’s regulations.”
Sesung Oh, reporter of Hankyung.com [email protected]
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