'Torres Effect'... Ssangyong Motor Resumes Weekly Two-Shift System After One Year

Decision Made Through 10th Round of Negotiations Between Labor and Management

[Asia Economy Reporter Kiho Sung] Ssangyong Motor announced on the 11th that it will end the single-shift system implemented a year ago as part of unpaid leave efforts in July last year and will resume the continuous two-shift system during the daytime.

As part of cost-cutting and self-help efforts last year, Ssangyong Motor converted the production line at the Pyeongtaek plant, which was operating under a continuous two-shift daytime system, to a single-shift system. The entire technical staff was divided into two teams of 50% each, and the office staff into three teams of 30% each, with one team rotating into unpaid leave every month.

With the expansion of production capacity through the resumption of the continuous two-shift daytime system, Ssangyong Motor has been able to establish a stable mass production system for the new car Torres, which has received great acclaim in the market with over 30,000 pre-orders.

The negotiations related to the resumption of the continuous two-shift daytime system began with a labor-management meeting on the 8th of last month and went through a total of 10 rounds of discussions, ultimately reaching a final labor-management agreement.

In particular, according to the self-help plan agreed upon in 2021, no replacements will be made for natural reductions such as retirements, and this issue was resolved through reassignment, resulting not only in effective restructuring but also increased productivity.

With the shift to two shifts, Assembly Line 1, which produces Torres, Tivoli, and Korando, will see an increase of 28 units per hour (JPH) compared to the single-shift system, and Line 3, which produces The New Rexton Sports & Khan, will increase by 14 JPH, totaling an increase of 42 JPH.

Through this change in work system, production capacity (CAPA) will increase from the existing 90,000 units (single shift) to 170,000 units (two shifts) annually, an increase of about 80,000 units per year. Assembly Line 1, which produces Torres, will increase its supply capacity by more than 50,000 units annually.

Ssangyong Motor plans to accelerate electrification starting with the launch of Torres. First, a mid-size SUV electric vehicle will be released in the second half of next year, followed by the KR10 project, a modern reinterpretation of Korando, and an electric pickup model planned for release in 2024.

Meanwhile, Ssangyong Motor selected the KG Consortium as the final preferred bidder on the 28th of last month. Based on the already signed conditional investment contract, the rehabilitation plan will be prepared and submitted to the court before the end of July, with a creditors' and shareholders' meeting expected to be held in late August or early September to obtain their consent.

Ssangyong Motor stated, “With Torres receiving great acclaim in the market, the increase in production volume and the change to a two-shift production line have created a virtuous cycle. We will repay the support shown by customers through pre-orders with the launch of Torres of perfect quality.”

This content was produced with the assistance of AI translation services.