Ssangyong Motor incurs massive output loss on work stoppage

SEOUL, June 21 (Yonhap) -- Ssangyong Motors Corp., South Korea's smallest
carmaker, said Sunday that it is estimated to have suffered 140 billion won
(US$111 million) in production losses due to a protracted strike by unionized
workers.
The company said it is estimated to have had a production shortfall of 6,385
units in the past two months due to the labor strike, signaling that the
automaker may post a huge deficit in the second quarter of the year.
Unionized workers at Ssangyong Motors have been on strike since April 25,
occupying the carmaker's sole plant in the city of Pyeongtaek, 70 kilometers
south of Seoul, to protest the job-cut plan. In response, Ssangyong has closed
the Pyeongtaek factory.
Ssangyong, which has been under court receivership since February, plans to cut
36 percent of its workforce, or 2,646 workers, as part of its survival bid.
Last month, the Seoul Central District Court said saving Ssangyong is more
valuable than liquidating it, but warned it could force the ailing carmaker to
close down if it fails to make the job cuts as promised.
Ssangyong posted a net loss of 265 billion won in the first quarter, compared
with a loss of 34 billion won for the same period last year. First-quarter sales
plunged 66 percent from a year ago to 234 billion won.
Recent numbers show that Ssanyong's sales free-fall has yet to come to an end, as
consumers shun buying cars from the potentially bankrupt company.
Last month, Ssangyong's auto sales plummeted 60 percent to 2,868 units, compared
with a 58 percent plunge in April.
sam@yna.co.kr
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