SsangYong Motor Blames Production, Sales Woes for Record Q1 Loss

SsangYong Motor Co. suffered a net loss of 193.54 billion won in the first quarter, posting a drastic disparity from its 26.12 billion won net loss a year ago.

The company attributed the poor performance, which represents the 13th consecutive quarter with a net loss, to disrupted production and weaker sales due to the coronavirus outbreak.

The company's first-quarter operating losses also worsened to 98.63 billion won from 27.80 billion won the previous year, while sales plummeted 30 percent to 649.19 billion won from 933.21 billion a year ago.

From January to April, the number of units sold was 30,952, plunging by 33 percent from 45,908 in the previous year.

SsangYong has not only the coronavirus pandemic to blame, as declining sales were also traced to a lack of new models and its parent firm Mahindra & Mahindra's refusal to infuse fresh capital into its Korean unit.

Early this year, Mahindra had announced 230 billion won investment into SsangYong for the next three years, but the plan was refused by Mahindra's board this month to the pandemic's effect on vehicle sales.

Instead, Mahindra, which owns a 74.65 percent stake in Ssangyong, proposed an infusion of 40 billion won over the next three months.

Analysts see SsangYong's fate depending on a rebound in sales of its flagship G4 Rexton, and of its Korando, Rexton, and Tivoli Sports.