Mahindra refused to invest in SsangYong

Mahindra refused to invest in SsangYong

April 7, 2020 0 By autotimesnews

The Indian company decided in difficult times to abandon investment in SsangYong. This is due to the need to reduce costs.

SsangYong’s sales are not going well. However, last year about 70% of the shares of the South Korean brand were acquired by the Indian Mahindra & Mahindra. The company immediately had a hope for the resurrection of the brand and expansion into many world markets.

In the next 3 years, the new owners of SsangYong planned to invest about 375 million euros in the company, however, due to the economic crisis and the outbreak of the coronavirus pandemic, which had an impact on the global auto industry, plans to finance a loss-making brand were postponed. However, the Korean brand will still receive some cash injections – in a few months, Mahindra & Mahindra will invest about 30 million euros.

“After a long assessment of current and future cash flows, the M & M Board of Directors decided that it was impossible to make a new capital injection at SYMC. SYMC is invited to independently seek alternative sources of income “