It appears Volkswagen isn´t busy enough with getting Porsche and being its sole owner. VW is now bent on taking over the South Korean automaker SsangYong Motor, which is operating under bankruptcy protection. Months ago, SsangYong suffered a vicious strike when hundreds of workers decided to occupy a factory and shut down production entirely.
Volkswagen has neither confirmed nor refuted the reports so far but it is believed that SAIC, the former SsangYong owner, collaborated with VW through the Shanghai VW joint venture.
Already, analysts at gasgoo.com are predicting a bright future for SsangYong which, under the ownership of Volkswagen, will add a production capacity of 25,000 units per year for low budget models.
The takeover would also lead the way for VW to bring new models in South Korea and support the implementation of electric car battery technologies in German cars. For SsangYong to survive, it believes that it has to repay its debts in full, in installments over five years at 3.84%.
Under its plan, other debts will be paid by converting 43% of the debts into new shares, while the remainder 47% will be paid in cash, over five years, at 3%.
Presently, SsangYong is still reeling from the effects of the strike; production and new car sales have dismal figures. For the remainder of 2009, it has a goal of 32,000 units. In the first seven months of the year, it sold only 13,000 units.