Ssangyong’s Problem ― Nobody Wants Its Cars

Ssangyong Motor’s Actyon SUV, left, and Super Rexton are two viable models among the troubled carmaker’s unpopular lineup.

By Jane Han
Staff Reporter

After coming out of a violent and grueling 77-day factory occupation, embattled Ssangyong Motor says it's aiming to make a solid comeback early next year with new and improved designs to its current models. But what are the chances for the automobile underdog to pull through?

Considering the toxic mix of the long-running protest against layoffs and fresh problems dogging South Korea's smallest carmaker, a speedy recovery is going to be a far-fetched goal, experts say.

Shares in Ssangyong Motor extended their rally for a fifth day Wednesday, however, the company has its work cut out to power any kind of long-term growth.

``The fate of Ssangyong all depends on what kind of crisis management plan the company draws up,'' said Seo Sung-moon, an analyst at Korea Investment Securities, adding that Ssangyong's new cars and consumer response to them will be a decisive variable.

The carmaker, which has been under bankruptcy protection since February, said it has submitted a request to court for money to develop some of its marquee models, including the Chairman and Rexton.

``We're going to start discussing design upgrades for both the exterior and interior of some of our models,'' said Won Hee-jung, a Ssangyong spokeswoman. The 2010 models will be unveiled in the first half of next year.

She said the most up-to-date features will be adopted to get some of Ssangyong's most popular designs up to par with other leading global competitors. The company labels BMW and Mercedes as direct competitors to its luxury car Chairman, while the Nissan Pathfinder and Toyota Frontier are considered rivals to its SUVs.

But auto critics have some tips for Ssangyong's rebound attempt.

Voted one of ``The World's Ugliest Cars'' on a British Web site a few years ago, the company's signature SUV designs don't seem to be working for consumers both at home and abroad.

Motor Trend, a leading trade magazine, once dubbed the Ssangyong Rodius as one of seven cars that ``should have never left the design studio.''

``Imagine a minivan exposed to toxic levels of radiation, and it would probably mutate into something like the Rodius,'' it wrote.

Korean auto buffs commonly say Ssangyong's glorious days fizzled out as soon as the company discontinued production of its most popular designs Korando and Musso in the mid-2000s.

``What Ssangyong needs to do first is listen to what the common consumer wants,'' said an official of one auto design firm, who didn't want to be named, citing Ssangyong's currently fragile situation.

The car maker is set to restart production Aug. 14 after ending a 77-day sit-in at its Pyeongtaek plant, south of Seoul.

He said the company tries to go ``too ahead'' compared to other makers, but advised that ``sometimes, it's safer to stay within a certain range of standard boundaries.''

jhan@koreatimes.co.kr

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