SsangYong is in Receivership
Riddled with $ 122 million in debt, SsangYong has been placed in receivership and hopes to find a new investor.
2020 will have been a very difficult year, and no one will have been spared. Blame it on a large-scale health crisis linked to the Coronavirus epidemic, which had a colossal impact on the automotive industry. Interruption of production, closure of concessions, fall in sales due to successive confinements, in short, manufacturers have been hit hard in recent months. However, not all were housed in the same boat, some even managing to do quite well despite everything, like Kia, whose sales fell by only 12.4% or even Toyota and Porsche. For others, on the other hand, the latter will have been much more complicated, sometimes leading to bankruptcy for some. Besides MPM Motors, which we told you about a few weeks ago, today it is SsangYong’s turn to be placed in receivership, the Korean brand being riddled with debts that it is no longer able to refund.
It was the automaker itself that called for this procedure to be put in place, as the last few months have seen almost standstill sales, with just 8,000 vehicles sold worldwide in August. In total, the firm owned by Mahindra would accumulate more than 122 million dollars in debts to its creditors, although it had yet started to take its head out of the water, after great difficulties in 2008. Anyway , this procedure just initiated with the Seoul court should allow the brand to rebound, while it is now exempt from repaying its debts for a period of three months. A reprieve which should then help the manufacturer to find a new investor, while Mahindra does not seem decided to help him, ten years after his takeover, aiming to put SsangYong back on the right track. All that remains is to hope that another company decides to save the manufacturer, which could eventually go bankrupt.
In a statement, the brand said that “all members of the executive committee have tendered their resignations. The company will do its utmost to emerge stronger and more competitive ”, suggesting that it is trying by all means to start moving forward, when it was precisely in a fairly satisfactory dynamic, after great difficulties. . Under the presidency of Mahindra, the South Korean firm had indeed recovered from the hair of the beast, by presenting cheap SUVs and rather successful on the aesthetic level, with its Tivoli and Korando. However, these will not have managed to relieve the manufacturer in a lasting way, which therefore finds itself in a very bad position. However, it had great projects for the years to come, including the launch of electric versions of its existing models, in order to get up to date and thus hope to compete with more solid manufacturers. It could nevertheless be that this objective is achieved, if a new buyer appears quickly …
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