SAIC Reserves the Rights
22 April 2009
News from Shanghai Automotive Industry Corp reported that it would protect its legitimate rights in defending itself against a lawsuit filed by smaller shareholders of its South Korean unit, Ssangyong Motor Corp. Ssangyong Motor Corp are seeking 1-billion-won (US$730,000) compensation from Shanghai Automotive Industry Corp. Ssangyong's smaller shareholders accused the company's former executives, including SAIC President Chen Hong, and SAIC of illegally transferring technologies and leading Ssangyong to bankruptcy protection in January. They alleged that SAIC failed to keep its promise to invest US$1 billion in Ssangyong when the Chinese automaker bought the South Korean car maker in 2004.
SAIC possesses 51 percent shares of Ssangyong Motor Corp. Ssangyong was taken over by the bankruptcy court after the financial crisis triggered a sales slump and a liquidity crisis.
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