Distressed Ssangyong Motor asks Chinese parent for fresh capital

SEOUL, Dec. 2 (Yonhap) -- Ssangyong Motor Co., the South Korean unit of China's Shanghai Automotive Industry Corp. (SAIC), has called for the Chinese parent to restore its capital bases amid a prolonged liquidity crisis, according to a newsletter issued by Ssangyong's labor union on Tuesday.

In the newsletter, Ssangyong's Chief Executive Officer Choi Hyung-tak told union
leaders that he asked SAIC to inject an "emergency fund" into his company to
overcome the current crisis.
"We desperately need massive new capital because debts will mature in April next
year," the newsletter quoted Choi as saying.
"Early next year will be a critical period for us," the statement read.
Choi said Ssangyong had incurred more than 100 billion won (US$68.3 million) in
losses for the July-September period.
Officials at Ssangyong's public relations team weren't immediately available for
comment.
Ssangyong, South Korea's smallest automaker, has been hit by a liquidity crisis
amid faltering sales.
On Monday, Ssangyong said its November vehicle sales plunged 63 percent from a
year earlier to 3,835 units.
China's state-run SAIC acquired a 51-percent stake in Ssangyong for $500 million
in 2004.