It is not easy with SsangYong. The South Korean brand applies for receivership after it turned out to be unable to repay a million-dollar loan.
It would be an amount of 60 billion won, or about € 44.5 million, Reuters reports. Although not being able to repay that loan is an important reason, it is certainly not the only cause of the problems at SsangYong. They have been around for some time, partly because parent company Mahindra does not seem to know what to do with the South Korean car manufacturer.
Earlier this year, Mahindra, the 75 percent owner of SsangYong, seemed to no longer feel like investing in the brand. Later a small capital injection followed, but at the same time the Indians prefer to see this brand disappear from their portfolio.
Although the media site of SsangYong proudly reports ‘record high’ sales figures until the middle of this year, the result for the entire year is disappointing. Up to and including November, 96,825 SsangYongs were registered in this disaster year, 20 percent less than in 2019.
SsangYong now sees herself forced to apply for receivership, but at the same time proposes a plan to get out of the misery independently. If that plan is approved, SsangYong will have three more months to reach agreement with its stakeholders. According to Mahindra, attempts to sell SsangYong will continue regardless of the outcome of the current troubles.