Ssangyong is facing Another Bankruptcy

[Amarapala]

South Korean SUV and ute manufacturer SsangYong has been dealt a blow as its parent company, Mahindra and Mahindra, decides it will “not invest further” in the brand.

According to industry source Automotive News, Mahindra has made the decision to cut costs after experiencing an 88 per cent drop in its own sales in March due to COVID-19 related market decline.

Mahindra had plans to invest a further US$423 million into SsangYong in a bid to make the Korean brand profitable by 2022, but has now told SsangYong to seek “alternate sources of funding”.

This move could prove disastrous for SsangYong which was only recently starting to feel the effects of Mahindra’s once-solid financial backing with the launch of its new-generation  Rexton large SUV.

There Biggest Service centers and Spare part manufacture factories sold to settle their loan in partial.

There will be a significant deficiency  ☹️ of spare parts for REXTON II (Y250), REXTON W (Y290), REXTON G4 (Y400) since the spare parts manufacturing has completely stopped due to the declaration of ssangyong  Bankruptcy ☹️ 

Further the demand on used Spare parts prices in Korea has gone extremely high and Aftermarket Value of SsangYong SUVs (REXTON series)  has shown drastical decline. 

In addition, Ssangyong Scored extremely poor rating for all REXTONs in EuroNCAP Safty ratings as a remarkable faliure, exept Korando 2019.

Edited September 15, 2020 by Amarapala

[fiat fan]

Does that mean it’s Time to sell our W and tivoli? Sad though. I liked them both!