Korean SUV specialist SsangYong will use parent company Mahindra’s one-time cash infusion to help ease its liquidity concerns due to softening global demand brought about by the COVID-19 pandemic.
The SsangYong board says it has agreed to use the one-time cash infusion of 40 billion won (USD 32.86 million) offered by India’s Mahindra & Mahindra last week. However, after this SsangYong will have to seek funding elsewhere.
Last week, Mahindra, which owns 74.65 percent of SsangYong pulled the plug on a USD 423 million investment plan on the struggling Korean automaker.
In February, SsangYong’s global sales fell 27.4 percent year-on-year.
Last year, they posted an operating loss of 281.9 billion won (USD 231 million) and a 5.6 percent drop in sales.
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