Rumor: Volkswagen could take over Ssangyong

Article by Christian A., on August 25, 2010

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.

Topics: vw, ssangyong

If you liked the article, share on:

Pin It

Comments

Recommended

Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
Sorry to say this to the Sport Quattro Concept fanatics. If you guys have been hoping for the production of this iconic concept to begin, prepare for your dreams to...
by - March 27, 2017
South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries