“A chain bankruptcy crisis”… Ssangyong Motor’s partners appeal to conglomerate parts makers to resume delivery

The picture is Ssangyong Motors headquarters in Pyeongtaek, Gyeonggi-do. (News1 DB) 2020.12.22/News1 © News1
– Small and medium-sized suppliers supplying to Ssangyong Motors appealed to “Resume the supply of parts and strive to normalize the management of Ssangyong Motors” in connection with the crisis of stopping production at the Pyeongtaek plant due to the refusal of delivery by large companies.

The’Ssangyong Motor Association’ (hereinafter referred to as the’Cooperative Association)’, a group of 350 small and medium-sized suppliers supplying parts to Ssangyong Motors, said on the 30th, “Ssangyong Motor’s prompt management normalization, as well as 160,000 employees, We request parts supply and support for the stable employment and survival of small and medium-sized suppliers.”

The cooperative said, “Currently, some large companies and foreign parts suppliers are refusing to supply parts due to rehabilitation procedures, so Ssangyong Motor is facing a crisis of production disruption.” They are being driven into the unemployment crisis.”

The association urged the government and financial sector officials to pay attention and support, saying, “Small and medium-sized suppliers are facing the worst crisis that cannot predict the future due to the management crisis of Ssangyong Motor.” The cooperative association sent an official letter to the member companies the day before (29th) and requested that Ssangyong Motors continue to supply parts.

In an official letter, the cooperative said, “I am concerned that the current production line is operating abnormally due to the interruption of delivery by some suppliers. It is the way to win-win by trusting Ssangyong Motor and helping rehabilitation through delivery and patience.”

The cooperative also added that “50% of the bills due in December are being paid in cash on the 29th and 30th, and some have been resolved, and Ssangyong has promised to receive the remaining amounts in order.”

The cooperative association said, “The application for corporate rehabilitation procedures by Ssangyong Motors is aimed at finding new investors and allowing them to continue normal development, production, and business. It is difficult, but Ssangyong can quickly find new owners and conduct stable business activities. Let’s help to make it.”

Prior to this, Ssangyong Motor Co., Ltd., on the 24th due to refusal of supply from five suppliers, including Hyundai Mobis (headlamp), S&T Heavy Industries (axle assembly), LG Hausys (bumper), Borg Warner Ochang (T/C assembly), and Continental Automotive (combi meter). On the 28th, production at the Pyeongtaek plant was stopped for two days.

Among them, Hyundai Mobis and S&T Heavy Industries resumed supplying parts from the 29th. LG Hausys also temporarily resumed supply on this day. However, there has been no news of the resumption of delivery from the rest of the companies.

It is reported that these companies are questioning Ssangyong Motor’s ability to pay, notifying the suspension of delivery, and requesting cash payments for items that have already been delivered.

Ssangyong Motor is planning to operate the plant normally until the 31st after receiving inventory from parts makers under discussion. However, the situation has not been decided since. An official from Ssangyong Motors said, “We are constantly discussing with parts makers.”

Meanwhile, Ssangyong-cha president Ye Byung-tae said at a meeting with the labor union on the 22nd, “The reason the sale is slow is due to Indian regulations, but we are speeding up negotiations with new investors, and we will gain fruit soon.”

(Seoul = News 1)