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

Steven White (First Author), Leiping Xu (Participant Author)

Research output: Other contributionCase Studies


This final case of the three-case series describes the grim situation facing SAIC in late 2008, as it is pummeled by the financial crisis after having seemed to overcome 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 now had to decide whether to push through the necessary changes in spite of union resistance, give up control to a court receiver, or divest its share of Ssangyong. The case serves as a basis for discussing 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.
Original languageEnglish
Number of pages19
Publication statusPublished - 1 Jan 2009

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Published by

China Europe International Business School


  • Automobile Industry
  • Integration
  • Merger and Acquisition (M&A)
  • SAIC Motor
  • Ssangyong
  • Strategy

Case studies discipline

  • General Management
  • Strategy

Case studies industry

  • Manufacturing


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