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Mahindra looking to offload SsangYong

SsangYong needs to look for a saviour again after Mahindra, its current owner, confirmed the Korean automaker needs a "new investor".

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Derek Fung
Derek Fung

SsangYong needs to find a new family to join, after being abandoned by its owners for the third time in two decades.

SsangYong needs a new investor. We are working with the company to see if we can secure investment,” Pawan Goenka, Mahindra’s managing director, told news outlets including Reuters.

Anish Shah, Mahindra’s deputy managing director said, “If a new investor comes on board, that automatically takes our stake down, or they may even buy our stake”.

The Indian automaker has not indicated if there are any interested suitors.

Mahindra entered the red last year, recoding a loss of ₹19.55 billion ($370 million). The company is currently reviewing all of its loss-making businesses.

Due to the lockdowns brought about by the COVID-19 pandemic, Ford and Mahindra have delayed the start of their joint venture company focussed on the Indian market.

Mahindra looking to offload SsangYong
Above: SsangYong Korando

The writing has been on the wall since April when Mahindra confirmed it was going to stop on-going funding for SsangYong.

Mahindra blamed the coronavirus pandemic and said it “will not be able to inject any fresh equity” into Ssangyong, urging it to “find alternate sources of funding”.

It did, however, give the Korean automaker ₩40 billion ($47 million) to help it through the next few months.

Mahindra currently has a 75 per cent stake in SsangYong, which it acquired in 2010, a year after Chinese automaker SAIC put the Korean marque into receivership during the height of the sub-prime mortgage crisis.

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Derek Fung
Derek Fung

Derek Fung would love to tell you about his multiple degrees, but he's too busy writing up some news right now. In his spare time Derek loves chasing automotive rabbits down the hole. Based in New York, New York, Derek loves to travel and is very much a window not an aisle person.

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