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Shanghai Automotive and Ssangyong Motor — A Tale of Two Dragons (C)

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  • Leiping Xu

    (Antai College of Economics & Management, Shanghai Jiao Tong University, China;
    Case Development Center, China Europe International Business School (CEIBS), 699 Hongfeng Road, Pudong, Shanghai, 201206, China)

  • Steven White

    (School of Economics and Management, Tsinghua University, China)

Abstract

This final case of the 3-case series describes the grim situation facing SAIC in late 2008, pummeled by the financial crisis after seemingly overcoming some of the major challenges of the first two years as controlling shareholder of Ssangyong. The Ssangyong union was again resisting proposed changes that SAIC saw as inevitable to ensure Ssangyong's continued solvency. SAIC was now faced with the decision to push through the necessary changes in spite of union response, give up control to a court receiver, or divest its share of Ssangyong. The case serves as a basis for discussing the decision of whether and when to divest and, particularly relevant for high-profile acquisitions by Chinese firms, the economic, strategic, political and reputational risks of a “failure” abroad.

Suggested Citation

  • Leiping Xu & Steven White, 2012. "Shanghai Automotive and Ssangyong Motor — A Tale of Two Dragons (C)," Asian Case Research Journal (ACRJ), World Scientific Publishing Co. Pte. Ltd., vol. 16(02), pages 225-247.
    • Handle: RePEc:wsi:acrjxx:v:16:y:2012:i:02:n:s0218927512500095
    DOI: 10.1142/S0218927512500095
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