SsangYong seeks investors to save it

The South Korean carmaker wants to get out of the bankruptcy it has been in since the start of this year as soon as possible, and to do so it needs a saviour. The administrator appointed by the South Korean Courts currently overseeing SsangYong, Park Young-tae, has stated that investors are being sought to help it out of the dire situation the brand finds itself in.

Park has also explained that the possible ways out for SsangYong involve a sale or a merger with another company, which may be domestic or foreign. Although no offer has yet been received, according to the South Korean agency Yonhap, investors from India, South Korea and China are said to have shown interest in acquiring it.

Since it passed into the hands of the South Korean Courts, SsangYong has faced numerous problems related to debts, a significant drop in sales and likewise in production, as there was a strike by workers at the South Korean factory, with violent protests, which lasted more than two months and ended with the intervention of the local police. This was triggered by the plans to eliminate jobs that SsangYong had intended to carry out to alleviate its crisis.

Specifically, the brand has lost 182 million euros from this production stoppage. Likewise, it has also been seriously affected by a 74% drop in sales during the first half of this year, falling to 13,020 vehicles.

Source | IbercajaMotor