Ssangyong Motor Reports Operating Loss of 98.6 Billion KRW in Q1, 13 Consecutive Quarters of Deficit
[Asia Economy Reporter Suyeon Woo] Ssangyong Motor recorded an operating loss of 98.6 billion KRW in the first quarter of this year, continuing its deficit streak for 13 consecutive quarters.
On the 15th, Ssangyong Motor announced its first-quarter results for this year, reporting sales of 649.2 billion KRW, an operating loss of 98.6 billion KRW, and a net loss of 193.5 billion KRW. First-quarter sales were 24,139 units, down 20.7% compared to the same period last year, and sales revenue also plunged 30.4%. The operating loss widened compared to 27.8 billion KRW in the same period last year.
This was due to production disruptions such as line-by-line temporary shutdowns caused by global supply chain issues for overseas parts following the worldwide spread of the novel coronavirus infection (COVID-19) since February. Ssangyong Motor explained, "We have been making every effort to resolve parts supply disruptions and minimize operational disruptions, but sales disruptions inevitably occurred due to worsening domestic and international market conditions."
Accordingly, the first-quarter earnings recorded a net loss of 193.5 billion KRW, including an operating loss of 98.6 billion KRW due to production disruptions and an impairment loss on tangible assets of 76.8 billion KRW.
Ssangyong Motor explained that as uncertainties deepen across the global automotive industry's demand and supply chains due to the spread of COVID-19, the company is dedicating company-wide capabilities to parts supply and supply chain management to prevent production disruptions. In addition, labor and management are working together to prepare various self-help plans to overcome the current management crisis.
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This year, Ssangyong Motor plans to increase sales by re-launching the G4 Rexton facelift model in the second half of the year along with the Tivoli Air, a long-body version of the Tivoli, and is conducting final quality inspections to launch the country’s first compact mid-size electric sports utility vehicle (SUV) early next year.
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