Facing losses due to falling sales in its home market, as well as impairment writedowns, India’s Mahindra and Mahindra is now seeking a buyer for its struggling South Korean subsidiary SsangYong.
The information was revealed by Pawan Goenka, managing director of Mahindra, during a financial results presentation in New Delhi last week, Reuters reported on Friday.
“SsangYong needs a new investor,” he said. “We are working with the company to see if we can secure investment.”
Mahindra acquired a 75% stake in SsangYong in 2010 after the SUV and light-duty truck brand ran into financial troubles at the hands of previous owners Daewoo and SAIC. Mahindra managed to briefly make SsangYong profitable six years later, and as recently as early 2020 planned to invest $406 million into the brand over a three-year period.
However, Mahindra, parent company to Pininfarina, in April canceled the investment after its own sales fell sharply due to the Covid-19 coronavirus pandemic.
Mahindra is also in the process of reviewing its other loss-making businesses, Anish Shah, deputy managing director of Mahindra, told Reuters.
Here in the United States, Mahindra continues to produce its Roxor off-roader at a plant in Detroit. It updated the design for the 2020 model year to avoid a trade dispute with Fiat Chrysler Automobiles over the similarities between the Roxor and the original Jeep.
The automaker is also working with Ford to co-develop an an electric car and a pair of SUVs for emerging markets. While those plans are still in place, they have been delayed by the coronavirus pandemic.