SsangYong workers start violent clashes (SK)

More than 900 armed workers have stormed SsangYong's plant in Pyongtaek, South Korea.

This isn't the first time the Korean firm has had problems. In December 2008, SsangYong was unable to pay it's workers.

The strikers were armed with pipes and firebombs, and are reported to have attacked some of the 4,000 people who had re-entered the plant in a bid to get the assembly line back into operation following a shutdown while the company was in receivership.

More than 80 people are injured in the clashes and the plant is now reported to be under the control of the rioting workers. Reports suggest that support for the rioters is growing, as local people join their demonstrations against job cuts.

“We came to the conclusion that our efforts alone can no longer protect our plant so we decided to leave, even though it breaks our hearts,” said a statement released by SsangYong's administrators. “Our employees entered the plant to protect our work place with only their bare hands against armed strikers.”

The violence was sparked after a court appointed administrator said SsangYong had to axe 976 of its workforce at the plant, from a total of around 5,000. Of those facing the axe, around half were offered an improved redundancy package for early retirement and half were offered jobs with affiliated companies or in the SsangYong sales operations. Any remaining workers were told they would be rehired in 2012 if they hadn't found alternative work.

However, the union representing the workers rejected the offer, and workers have been occupying the plant since May.

Following the violent clashes as non-unionised workers tried to restart the plant, Ssangyong's administrators have said they will not try to restart the plant again, adding that the company would almost certainly go into administration as a result of the union workers' actions if they did not leave.

Ssangyong's management has until Wednesday 15th July to submit a viable restructuring plan to shareholders and the administration court. The court will make a ruling by 15th September whether to permit SsangYong to keep operating or liquidate its assets.

It is not yet clear how the strikes will affect production of SsangYong's vehicles, including the forthcoming C200 SUV.

Lancia launch very "unlikely" (UK)

Fiat has stalled plans to relaunch Lancia in the UK again and may cancel them altogether.

Right hand drive Lancias were scheduled to be sold in the UK in early 2010, with the all-new Delta leading sales but officially imports have been postponed now until at least 2011. However, Fiat UK marketing director Elena Bernadelli has revealed the relaunch of Lancia in the UK “is now very unlikely”. She added that right hand drive Lancias may now not be made.

In a separate interview, a Fiat spokesman conceded that the company’s alliance with Chrysler had diverted resources, and added that launching an expensive, niche premium-brand product-line in Europe is not currently a priority. The spokesman suggested that it is not financially viable to re-engineer cars including the Delta and forthcoming Ypsilon supermini for a right hand drive layout.

Ford transfers C-Max production to Spain

Ford will transfer production of its C-Max MPV to Spain from Germany. The new C-Max, which launches next year, will be built in Valencia. Ford says the new C-Max will be built exclusively at the plant "for all European markets and potentially for markets outside Europe". The current C-Max is built in Saarlouis, Germany.

However, Valencia will lose production of the Focus when the new generation car launches next year, as it will be built solely in Saarlouis. Ford Focus production was previously split between Saarlouis and Valencia. Both the Ford C-Max and Focus have been previewed by the Ford Iosis Max concept car.

John Fleming, Ford of Europe CEO, said the production changes would maximise manufacturing capacity.

"Our objective is to return to sustainable profitability as soon as we can," said Fleming. "We've already shown that we will make the necessary decisions and do whatever is required to ensure that Ford of Europe emerges from the downturn as a leaner and stronger company, ready to take on the opportunities presented once the economic situation finally improves."

Last month, the European Commission approved €51.9m (£44.5 million) of Spanish state aid for Ford to restructure the Valencia plant, which also builds the Fiesta.

Ford told the Commission it plans to invest €490m (£420 million) at the plant.