Home Car News Mahindra to halt Ssangyong investment

Mahindra to halt Ssangyong investment

- Advertisement -

Mahindra board cites crises triggered by the coronavirus pandemic as a justification for discarding its subsidiary investment plan. So, it will continue to support all other SsangYong Motors’ non-funding initiatives.

The board of directors of Mahindra & Mahindra (M&M) held a special meeting. So, to review investment in SsangYong Motor Company (SYMC). While reviewing the approach to capital management in light of the effects of COVID-19. Perhaps it recalled that Mahindra was considering spending 2.800 Rs of crore. As in the Korean carmaker in February. And expected profitability by 2022.

Mahindra’s board considered a plea from SsangYong’s management. And trade union for a fresh infusion of equity to help. And the business fund achieves the requirements of 500 billion Korean (Rs 3,004 crore) over the next three years. The board acknowledged that major parts of the global economy are under a shutdown. And India, in particular. So, it is under a full 21-day lockout that has never been seen before.

The board has introduced several steps to improve capital management discipline. To ensure that M&M stays solid through. And through the ongoing crisis. Given the existing and expected cash flows. After extensive deliberation, Mahindra’s board decided that the firm would not be able to inject any fresh equity into SsangYong. And so advised it to consider alternate financing sources.

Nonetheless, the board has allowed the M&M management to accept a special one-time injection of up to 40 billion Korean won (Rs 236 crore). So, over the next three months to allow the Korean carmaker to have continuity of business activities. While seeking alternative sources of financing.

Additionally, Mahindra says it will make every attempt to continue. And to support all other non-fund programs currently in progress to help the Korean carmaker cut CAPEX, save costs and raise funds.

  • Capex-free entry to the new platforms including the W601 from Mahindra.
  • Fund projects in the technologies that will help to raise the CAPEX of SsangYong.
  • Help the already underway plan of content cost control.
  • Help management to locate new investors in SsangYong.

Mahindra’s Board says it hopes that SsangYong’s workers. And management can realize the severity of the tragic and unexpected situation generated by the COVID-19 virus. This has prompted it to take the hard call.

- Advertisement -


Sign up for latest news, important updates and special tutorials.


Must Read

Ford Endeavor Sport Edition Launch Date, Specs, Mileage, Price, And Latest Update Here !!!

The Ford Endeavor Sport has been launched in India, priced at Rs 35.10 lakh. The Ford Endeavor Sport is a special edition that is...

Tata Nexon EV Car 3D Platform Launched: Know Here All the Features of Tata Nexon Electric Car in 3D View !!!

On the occasion of World Electric Vehicle Day, Tata Motors showcased all the variants from Nexon Electric with a 3D view. The company has...

Volkswagen Tiguan X Coupe Car: Know About Launch Date, Specs, Mileage, Price, And All Information !!!

Volkswagen has revealed the Tiguan X, its coupe SUV. Photos of the Tiguan X Coupe have been shared on social media. It is a...

Know Everything About Tata HBX Micro SUV Car Launch Date, Specs, Price, And All Information !!!

Domestic carmaker Tata Motors is currently working on its micro SUV Tata HBX. The company showcased this SUV at the Auto Expo 2020 held...

Know About Mercedes-Benz EQC 400 Launch Date, Specs, Review, Mileage, Price, And Everything Latest Update Here !!!

Mercedes-Benz has updated its electric SUV EQC 400 on the Indian website. Last week this car was seen in a showroom in Delhi. Mercedes...

Know Everything About BS6 Honda Jazz Variant Wise Features, Specs, Mileage, Price, And More Information !!!

Car manufacturer Honda Cars India recently launched the new-generation Honda Jazz, and it's premium hatchback car. The company has launched the Car at an...

Citroen C3 Sporty: Know About Expected Launch Date, Specs, Features, Price, And More Information !!!

Car manufacturer Citroen is preparing to launch its first car in the Indian market. According to the information, Citron may present its C5 Aircross...

Car Company Honda Announced its First Electric Car Will be Named “Honda E” !!!

While most carmakers are focusing on making electric sedans and electric SUVs, Japanese carmaker Honda Cars are preparing to make a small car as...

New Hyundai i20 Elite Car: Know About Specs, Mileage, Review, Launched Date, And Every Latest Update Here !!!

The new Hyundai i20 is scheduled to be launched in October, due to which the company has been doing road testing of this car...

New Honda Jazz TVC Launched In Indian Market Recently, Know Car Features, Specs, Mileage, And All Information !!!

Japanese carmaker Honda Cars has launched its premium hatchback Honda Jazz in the Indian market. The company has launched this car for Rs 7.49...