Planning to Roll out Mid-sized SUV and EV in 2021
SsangYong Motor is planning to launch a mid-sized sport utility vehicle (project name J100) and an electric vehicle (EV) in the first half of 2021.
The ailing automaker is seeking another leap forward by completing its SUV lineup with the launch of the J100 and expanding into eco-friendly cars with a mid-sized EV. Currently, SsangYong's SUV lineup consists of the compact Tivoli, the mid-sized Korando, and the large G4 Rexton.
If SsangYong launches a mid-sized SUV next year, it will be its first SUV in about 11 years since discontinuing the Kyron in 2011. SsangYong plans to make the new model a competitor of the Santa Fe of Hyundai Motor, the Sorento of Kia Motors and the QM6 of Renault Samsung. It plans to apply a completely new platform to the J100, rather than modifying the Mahindra medium-sized SUV or Korando platform.
The automaker is also racing to roll out Korea's first mid-sized SUV electric vehicle. “We plan to launch a mid-size SUV electric vehicle in the first half of next year,” a company official said. “We are closely cooperating with battery makers to enable the electric vehicle to run over 400 km on a single charge.”
However, nothing is more important than staying afloat for SsangYong. The company’s short-term borrowings due to mature in 2020 are estimated at 254 billion won, much more than the emergency operating funds of 40 billion won that will be injected by Mahindra, SsangYong’s parent company in India.
In 2019, SsangYong Motor's financial conditions deteriorated to the level of 2008 just before it was put on a workout program. SsangYong's debt ratio reached 400 percent in 2019, lower than the 574 percent in 2008, but twice as high as the adequate debt ratio of 200 percent.
Its liquidity ratio stood at 50 percent in 2019, worse than the 71 percent in 2008. On the other hand, sales in the first quarter of 2020 also decreased 30.7 percent from a year ago. But its immediate concern is to repay 90 billion won to Korea Development Bank in July. The company’s labor and management are asking for a help from the government and KDB but have not received a straight answer yet.