SEOUL, Sept. 20 (Korea Bizwire) — SsangYong Motor Co., the South Korean unit of Indian carmaker Mahindra & Mahindra Ltd., said Friday it will enact a set of cost-cutting measures to cope with mounting losses.
In the “preemptive self-help” measures, the company will reduce benefits, such as education expenses for children and medical coverage for its employees, according to SsangYong Motor.
“The union has accepted the company’s proposals to jointly respond to declining sales in worsening business environments,” a company spokesman said.
But the company does not have a plan to reduce its workforce for now, he said.
In the April-June quarter, SsangYong Motor’s operating losses deepened to 49 billion won from 7.5 billion won in the year-ago period, suffering a loss for the 10th consecutive quarter.
From January to August, its sales fell 2.4 percent to 88,702 vehicles from 90,925 units a year earlier.
The SUV-focused carmaker’s lineup includes the flagship G4 Rexton, Tivoli, Korando C and Korando Turismo.
Mahindra & Mahindra owns a 72.85-percent stake in SsangYong Motor.