Indian Mahindra is urgently looking for an investor for its subsidiary SsangYongJune 15, 2020
The management of the Indian automobile company Mahindra is actively seeking investors in order to save its subsidiary SsangYong from ruin.
The decision of the management of the Indian industrial conglomerate is part of a wider restructuring effort to reduce costs and redefine capital spending priorities in the context of the coronavirus pandemic. Earlier, the Indian company Mahindra reported a consolidated net loss of $ 258 million compared with a net profit a year ago, as it registered a write-off of funds for its investments in South Korean SsangYong and its other foreign divisions.
“SsangYong needs a new investor. We are working with a South Korean automaker to find out if we can find the necessary investment flow, ”said Pavan Goenka, according to boss Mahindra.
In addition, Mahindra recently lost a case with the Italian-American concern FCA and was banned from importing components for its small Roxor SUV in the United States (pictured above).
Mahindra owns a 75 percent stake in SsangYong, which she saved from insolvency in 2010. The Indian company struggled to revive the South Korean manufacturer of SUVs. Back in April, the parent company announced that it would no longer invest in SsangYong.
“If a new investor joins us, it automatically reduces our share, or these investors can even buy our share in a South Korean company,” said Anish Shah, Mahindra Deputy Managing Director. The manager added that Mahindra will check all of its loss-making enterprises over the next 12 months.
According to Mr. Shah, Mahindra will continue to invest in companies that can generate income of 18 percent or are of strategic importance.
Not so long ago, our publication wrote that the FCA group won the case against Mahindra for copying the Jeep design. The Italian-American concern Fiat Chrysler Automobiles was able to win a trial against the Indian company Mahindra – the latter copied the design of the Jeep Wrangler SUV when creating its model.
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