South Korea's smallest carmaker is engaged in talks to find a new owner that could help revive the embattled company, which filed for bankruptcy protection earlier in the year, Yonhap News Agency reported Sunday, quoting a company source.
Lee Yoo-il, one of two court-appointed managers at Ssangyong, told reporters on Yeongjong Island in Incheon west of Seoul that the company is holding potential mergers and acquisitions talks with a few interested parties from abroad.
"The companies that shown interest have been slow to make a presence in the Asian market, and do not have conflicting automobile manufacturing platforms with Ssangyong that can help positive synergy in future development strategies," he was quoted as saying at the unveiling ceremony for the company's new luxury sedan.
Without going into detail, he said that Ssangyong may be able to select a firm to coordinate sales in late November or early December, and hinted there are investors willing to give money to keep the carmaker afloat while acknowledging that negotiations have not reached the final stage.
The managers said speculation that Volkswagen may be trying to buy the company is unfounded and added that the possible buyer is not from Russia or China. Ssangyong makes luxury sedans and sports utility vehicles, which have been hit the hardest by the economic downturn.
He added that while Ssangyong has been hurt by a labor strike, it is aiming to increase production to 85,000 vehicles in 2010, up from 69,000 units estimated by PricewaterhouseCoopers Korea earlier in the year.
The carmaker needs to sell at least 72,000 units per year to break even.
Ssangyong claimed that it will release several new models in 2010, including the C200 that is undergoing final design changes. It added that efforts are underway to build a small-size electric vehicle and hybrid powered car within the next five years.