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SsangYong filed for bankruptcy. The financial troubles of a well-known South Korean automaker began four years ago, but the COVID-19 pandemic finally “wiped out” the company.
According to the Financial Times, Ssang Yong was unable to pay a $ 54.4 million debt with creditors. The automaker has already filed a declaration of financial insolvency in the Seoul court.
For the past 15 quarters, the company has consistently shown a loss in sales, and amid the coronavirus, Sang Yong’s business has completely collapsed. The plight of Koreans should have been saved with a $ 423 million investment from parent automaker Mahindra (which owns 75 percent of Ssang Yong), but the Indian company embraced austerity and refused to help.
At the same time, not only its owners, but also the South Korean government do not want to save SsangYong. Previously, the country’s authorities invested heavily in the local factories of General Motors and Renault, but they were not justified: instead of expanding production in Korea, the American company and the French group began to gradually reduce staff. But local suppliers of spare parts for Ssang Yong will receive financial support, the South Korean Ministry of Commerce said.
Ssang Yong’s final fate will be decided within the next three months; During this time, the company must either find a new investor-owner or agree with the creditors to restructure the debt.
Please note that Ssang Yong brand is known as off-road model manufacturer such as Rexton, Korando, Action and Kyron. Several years ago, the cars of this manufacturer were officially sold in Ukraine, but then they left the market.
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