Search CarGuide.PH

Tuesday, April 14, 2020

SsangYong Agrees to Use "Final Lifeline" to Help Stay Alive

Korean SUV specialist SsangYong will use parent company Mahindra’s one-time cash infusion to help ease its liquidity concerns due to softening global demand brought about by the COVID-19 pandemic.

The SsangYong board says it has agreed to use the one-time cash infusion of 40 billion won (USD 32.86 million) offered by India’s Mahindra & Mahindra last week. However, after this SsangYong will have to seek funding elsewhere.

Last week, Mahindra, which owns 74.65 percent of SsangYong pulled the plug on a USD 423 million investment plan on the struggling Korean automaker.

In February, SsangYong’s global sales fell 27.4 percent year-on-year.

Last year, they posted an operating loss of 281.9 billion won (USD 231 million) and a 5.6 percent drop in sales.

No comments:

Post a Comment

Feel free to comment or share your views. Comments that are derogatory and/or spam will not be tolerated. We reserve the right to moderate and/or remove comments.