Ssangyong Motor Reports Operating Loss of 423.5 Billion KRW Last Year... Deficit Widens by 50%

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] SsangYong Motor announced on the 29th that it recorded an operating loss of 423.5 billion KRW last year. This represents a 50.2% increase in the deficit compared to the operating loss of 281.9 billion KRW recorded in 2019.

Although SsangYong Motor made efforts to reduce welfare and labor costs last year, the company explained that the deficit widened due to production disruptions caused by a decline in exports and parts supply issues resulting from COVID-19.

Last year, total sales volume was 107,416 units, down 20.6% compared to 2019, and sales revenue was 2.9502 trillion KRW, a decrease of 18.6% over the same period. Net loss for the period also increased by 40.2% to 478.5 billion KRW. It is analyzed that the global demand decline caused by the spread of COVID-19 has prolonged, with export decreases being more significant than domestic sales declines.

However, despite the contraction of the global automobile market, SsangYong showed a sales increase for four consecutive quarters through continuous product improvement models, new product launches, global network restructuring, and product mix diversification. In the fourth quarter, new models such as the Tivoli Air and All New Rexton were launched, and through various non-face-to-face strategies in response to the COVID-19 situation, sales exceeded 10,000 units for three consecutive months.

SsangYong plans to improve both sales volume and profitability this year through new product launches, including the E100, SsangYong’s first and Korea’s first compact SUV electric vehicle model, and aggressive marketing strategies.

SsangYong Motor stated, "Although overall sales decreased compared to the previous year, we showed a recovery trend for four consecutive quarters through continuous new product launches and strengthening of non-face-to-face sales channels," adding, "We will do our best to expedite overcoming the COVID-19 situation and normalizing management by securing new investors, launching various new cars, and exploring overseas markets."

This content was produced with the assistance of AI translation services.