Ssangyong Motor Reports Q1 Operating Loss of 84.7 Billion KRW, 14% Decrease Year-on-Year

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] Ssangyong Motor, which is undergoing corporate rehabilitation procedures, announced on the 17th that it recorded an operating loss of 84.7 billion KRW in the first quarter. This represents a reduction of about 14% in the loss compared to the same period last year.

Sales amounted to 535.8 billion KRW, a 17.5% decrease compared to the first quarter of last year, and sales volume also dropped by 22.9% year-on-year to 18,619 units.

Ssangyong Motor explained that although sales declined due to production disruptions caused by the suspension of deliveries from parts suppliers, the loss scale improved thanks to changes in the product mix such as the effect of the newly launched The New Rexton at the end of last year and cost-cutting efforts. Following last month's pickup trucks, The New Rexton Sports and Khan, the company has continuously introduced new models, including the Tivoli Special model earlier this month.

Exports have shown a clear recovery this year, but due to production disruptions such as temporary shutdowns, the company was unable to fully absorb the secured export volume, resulting in a 9.5% decrease compared to the same period last year. The net loss for the period was significantly reduced to 86.3 billion KRW compared to 193.5 billion KRW in the same period last year.

Ssangyong Motor stated that it is dedicating company-wide capabilities to cooperation with partner companies as well as parts procurement and supply chain management to prevent production disruptions.

A Ssangyong Motor official said, "The New Rexton Sports and Khan have received greater-than-expected positive responses in the market, and exports are also showing a recovery trend," adding, "We will do our best to resolve the backlog by closely cooperating with partner companies to operate the production lines normally."

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