SsangYong Motor Mulls Belt-tightening Measures amid Slump | Be Korea-savvy

SsangYong Motor Mulls Belt-tightening Measures amid Slump

SsangYong Motor's Rexton Sports SUV. (image: SsangYong Motor)

SsangYong Motor’s Rexton Sports SUV. (image: SsangYong Motor)

SEOUL, Aug. 6 (Korea Bizwire)SsangYong Motor Co., the South Korean unit of Indian carmaker Mahindra & Mahindra Ltd., said Tuesday it is considering some belt-tightening measures due to increased losses.

In a letter sent to employees last week, SsangYong Motor President and CEO Yea Byung-tae said the company will begin discussing a set of cost-cutting measures, including reducing the number of executives by up to 20 percent, according to a company spokesman.

The measures under review are aimed at “preemptively” responding to rising costs and worsening profitability, the CEO said in the message.

In the January-June period, SsangYong Motor’s net losses almost doubled to 77.6 billion won (US$64 million) from 39.6 billion won a year earlier.

Lower demand for its models and higher marketing costs in a tougher competition with rivals ate into the first-half bottom line.

The company sells SUVs only, and its lineup is composed of the flagship G4 Rexton, Tivoli, Korando C and Korando Turismo.

Last week, SsangYong Motor and its union agreed on a wage deal for a 10th consecutive year without staging a strike.

Mahindra & Mahindra owns a 72.9 percent stake in the SUV-focused carmaker.


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>