Covid-19 May Piece The Terminate Of The Route For Ssangyong Motor

As carmakers fighting amongst falling sales as well as halting of production, it’s a thing of fourth dimension when to a greater extent than or less destination upwards struggling. The starting fourth dimension automaker that may autumn victim to COVID-19-related economical slowdown? SsangYong.

Influenza A virus subtype H5N1 report out of Reuters says its largest stakeholder, Mahindra, volition non invest farther inwards the South Korean SUV specialist. This comes every bit Mahindra finds itself trying to conserve cash afterward sales nosedived 88 per centum end month.

In a regulatory filing, Mahindra, which holds a 74.65 per centum stake inwards SsangYong said:

“After lengthy deliberation given the electrical current as well as projected cash flows, the M&M [Mahindra & Mahindra] Board took a determination that M&M volition non hold upwards able to inject whatsoever fresh equity into SYMC [SsangYong Motor Corporation] as well as has urged SYMC to notice alternate sources of funding.”

The annunciation came less than ii months afterward Mahindra said it would invest US$ 423 1 1000 m to brand SsangYong profitable yesteryear 2022. Among the plans was to launch an all-electric version of the Korando SUV. That was since canceled.

Mahindra said it would consider a particular one-time infusion of upwards to xl billion Korean Won (USD $32.34 million) over the side yesteryear side 3 months to assist SsangYong maintain running its describe of piece of job concern piece it seeks other sources of funding.

In 2010, Mahindra rescued SsangYong from virtually insolvency.