Intensive Reform Underway to Normalize Business
SsangYong Motor Co., a subsidiary of India's Mahindra Group, announced on Oct. 18 that the company sold 31,126 units, posted revenue of 836.4 billion won, an operating loss of 105.2 billion won, and a net loss of 107.9 billion won in the third quarter of this year.
The company’s third-quarter sales and revenue declined 11.4 percent and 7.2 percent on quarter, respectively, due to a slowdown in the global auto market and domestic market.
Year-to-date revenue rose 2 percent from the same period last year based on a market share increase, while year-to-date sales were down 0.8 percent due to weak exports.
SsangYong’s third-quarter losses have expanded due to a sales decrease, an operating costs increase amid intensified market competition, and a depreciation costs increase by expanding investments.
SsangYong launched three new models in the first half of this year and introduced gasoline version of the Korando in the third quarter, pursuing a recovery in sales by releasing new facelifted models.
The company is striving to expand global sales though visits to its dealers in Europe in line with the global shipments of the Korando M/T model starting in September. In addition, SsangYong has signed a product license agreement with Saudi National Automobiles Manufacturing (SNAM) to export the Rexton Sports.
In September, the company’s labor and management agreed to make preemptive self-efforts to normalize management, including suspension and reduction of employee welfare benefits. Moreover, the company plans to conduct intensified reform to fundamentally improve its business structure and to secure future growth engines.
Yea Byung-tae, CEO of the automaker, commented, “Despite the launch of new products, the losses have increased due to contracting industrial demand and heated competition,” adding, “We are committed to normalizing management through aggressive efforts to expand global sales, and profitability improvement based on high-level of reform.”