Desperate to Stay Afloat
SsangYong Motor said on June 1 that it has sold a service center in Seoul to weather a liquidity crunch worsened by the COVID-19 outbreak.
SsangYong Motor sold an after-sales service center in Guro, Seoul, for 180 billion won (US$147 million) to PIA, an asset management firm in Korea.
"The sale of the non-core asset is part of the company's efforts to improve its financial conditions and secure funds for investments," it said in a statement.
The company said it signed a sale and lease-back agreement with PIA to use the Guro service center for the next three years.
SsangYong Motor, which is a subsidiary of Indian carmaker Mahindra, has been suffering a severe liquidity crisis as its sales plummeted due to a lack of new models and the COVID-19 outbreak. Its parent firm has recently decided not to inject fresh capital into the ailing Korean unit.