ACCORDING to a report in Automotive News Europe yesterday (21 December 2020), Korean car maker SsangYong has filed for receivership.
The decision was made after SsangYong was unable to meet a repayment of 60 billion won (about £45.5m) due to worsening trading conditions. An official communique said the business was undergoing an Autonomous Restructuring Programme.
SsangYong is 75% owned by Indian OEM Mahindra & Mahindra, which said it was cooperating fully with the board to ensure liquidity and a business restructuring.
However, SsangYong Motors UK said it would continue to operate as normal. Kevin Griffin, managing director for the brand in the UK, said:
Whilst this situation is not ideal, I strongly believe that the Autonomous Restructuring Programme will result in the birth of a stronger company. I want to reiterate that our UK operations are totally unaffected, and we are very much open for business.
SsangYong currently has 65 dealers covering England, Northern Ireland, Scotland and Wales.
Talks about possible Mitsubishi takeover fail
SsangYong in the UK is owned by Bassadone Automotive Group. The holding company has been in discussions with Mitsubishi about acquiring areas of The Colt Car Company following Mitsubishi’s decision to end European sales.
However, on 15 December Mitsubishi Corporation confirmed that it had withdrawn from negotiations.
Nick Laird, CEO of Bassadone Automotive Group, commented: “The news is clearly disappointing; however, we wish Mitsubishi Corporation and the team at Colt Car Company all the best for the future.”
Jim Tyrrell, chairman at SsangYong Motors UK, added that recently SsangYong had welcomed 10 Mitsubishi dealers to its family and was in discussion with more. He commented:
There is a clear overlap in product ranges, so Mitsubishi dealers would find the SsangYong range easy to sell. We will be holding an open day at head offices in Swindon on 19 January and would like to encourage all Mitsubishi dealers to contact us to arrange to come. We will be showing the full range of product and all of our management team will be in place to answer questions.
Automotive and fleet writer for Broker News
