SsangYong bankrupt? Mahindra has refused to allocate money

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SsangYong bankrupt? Mahindra has refused to allocate money

On the background of the pandemic coronavirus infection COVID-19 Indian Corporation Mahindra & Mahindra has decided not to invest in the development of Korean SsangYong Motor, owned since 2011, and asked her to look for investments on the side.

From left, there came: ten years ago, Mahindra & Mahindra acquired in bankruptcy of SsangYong Motor, but success under the Indian wing of the Korean company has not achieved and continues to remain at the rearguard of the global automotive industry. Last year, global sales of the brand SsangYong was 143 685 SUVs and crossovers, which is 8% less than in 2018.

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In March of this year because of the pandemic coronavirus infection COVID-19 the global economic crisis and implemented in many countries (including in India) quarantine SsangYong sales decreased by 31% compared to March 2019 and built 9345 car. But Mahindra & Mahindra which now owns 74,65% stake in SsangYong Motor, the case is even worse: in March, sales fell by 88% to 7401 PCs and finances there is a deplorable.

In connection with this manual, Mahindra & Mahindra decided to reject the negotiated early in the year the withdrawal plan of SsangYong Motor is in profit in the next three years. The implementation of this plan involved the infusion from Mahindra & Mahindra in SsangYong Motor 500 billion South Korean won (407 million U.S. dollars translated at the current exchange rate), but now this money will go to the salvation itself Mahindra. Indian Corporation all-taki will allocate SsangYong Motor 40 billion won (32 million dollars) to maintain current activities in the next three months, but the Korean company punished to urgently seek alternative sources of funding. In terms of paralysis of the world economy in General and the financial services sector in particular strategy, quite frankly, murderous, that is to hope SsangYong Motor, in fact, no matter what.

Accordingly, it is unclear what will happen now even with the closest novelties SsangYong, not to mention long-term plans. This year the Korean company, we will remind, planned to upgrade the flagship Rexton SUV and present in Europe, the electric version of the Korando crossover. Premiere electric was to be held in early March at the Geneva motor show, but it was canceled due to the threat of proliferation COVID-19. Last year, SsangYong sales in Europe fell 10% to 14 627 units, and with the advent of the electric SUV in the line Korean brand associated the hope for growth. Now the European market froze, and catch here, of course, is nothing.

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Apart from the SsangYong Motor Corporation of India Mahindra & Mahindra 2015 owned by the Italian company Pininfarina, which is now positioned as the manufacturer of luxury electric vehicles, and last year, the motorcycle division of Peugeot Motocycles, which was purchased from Groupe PSA. What will be the fate of these assets in connection with some trials and crisis, it is unclear — perhaps Pininfarina and Peugeot Motocycles will be asked to take care of ourselves and look for the money collapsible on the market.

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