Ssangyong Motor's Union meets with New Chinese Owners

The trade union of Ssangyong Motor Co. made job security and investment demands to prospective buyer Shanghai Automotive Industry Corp. during its first official meeting with the Chinese automaker yesterday.

At the closed-door meeting in Seoul, union officials asked Shanghai Automotive to guarantee jobs and a long-term investment in Korea's No. 4 automaker.

China's largest carmaker was selected as a preferred bidder in July to acquire the Korean company. It plans to sign a contract with Ssangyong's creditors by end of this month to purchase 48.9 percent of the company.

Ssangyong, which commands about 10 percent of the Korean auto market, came under creditor ownership after the parent Daewoo Group collapsed in 1999 under a pile of debt. It mainly produces sport utility vehicles such as the Rexton and Korando..

Shanghai Automotive hopes to gain Ssangyong's expertise in the SUV segment since the Chinese company does not have SUV's in its product lineup.