Ssangyong declares bankruptcy
- Korean SUV manufacturer Ssangyong has failed to grow under Indian Mahindra rule despite skyrocketing sales of SUVs around the world.
- Ssangyong has failed to adapt its supply to global demand, possibly due to lack of funds. Ssangyong’s funds have shrunk considerably in recent years, since the Korean has suffered significant losses since 2017. its loans from foreign banks will not be reimbursed (we are talking about 122 million euros in debt). Suddenly, its owner Mahindra announced that he could not help Ssangyong under the current circumstances and accepted the Korean's request to go into receivership for lack of being able to repay his debts.
- The manufacturer's product offering has always seemed out of step with the other carmakers, especially in terms of design, which is rather controversial. Boldness didn’t pay off. Ssangyong's production has sailed between 100,000 and 150,000 vehicles per year since 2011.
- This is the third time that the manufacturer has found itself in great difficulty, the first being when GM had bought Daewoo in 2001 (owner of Ssangyong since 1998) and had left the manufacturer to its doom, the second being when SAIC which had bought Ssangyong in 2004 separated from it in 2009 due to the Korean's first bankruptcy. In 2011, Ssangyong was taken over by the Indian Mahindra who is now separating due to the Korean’s second bankruptcy. It is unfortunate that no component sharing or real rationalization has been decided at Mahindra to sustain the Ssangyong business.
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