Ssangyong streamlines operations

Ssangyong Motor Co. said it will downsize its business operations and cut executives’ wages by up to 54% in a bid to quickly conduct procedures for court receivership. Ssangyong, a unit of China’s Shanghai Automotive Industry Corp. (SAIC), was placed under court receivership on February 6. SAIC lost management control of Ssangyong, but retained its 51% stake in the company. Ssangyong plans to increase its sales by integrating and downsizing its business operations and predicts it will cut its annual costs by up to four billion won (US$2.79 million) by slashing executives’ pay within a range of 20 to 54% and reducing employee benefits. (February 18, 2009)