|Title||SsangYong Motor 2020 Q1 Business Results|
▪ SsangYong’s Q1 2020 Sales and revenue down by 30 percent due to COVID-19 pandemic which caused a disruption in auto-parts supply chain and manufacturing
▪ Aside from operating loss, 76.8 billion won of tangible asset impairment loss also reflected in accordance with the business accounting standards
▪ SsangYong to reshuffle product lineup through new product development and upgraded model launch this year to stay ready for recovering market
SsangYong Motor Company (CEO Byung-Tae Yea; www.smotor.com/en) sold 24,139 units, posted revenue of 649.2 billion won, an operating loss of 98.6 billion won, and a net loss of 193.5 billion won in Q1 2020.
SsangYong’s assembly-lines had to be halted in rotation amid the Coronavirus pandemic since February which caused a disruption in oversea parts supply chain, leading to loss of sales volume and revenue by 30.7 percent and 30.4 percent YoY.
SsangYong explained that it has been working tirelessly to solve the auto-part supply issue and minimize the impact on manufacturing, but the market conditions are aggravated, making the damage on sales unavoidable.
As a result, the company recorded 98.6 billion won of operating loss in Q1 2020 due to the manufacturing crisis. On top of that, 76.8 billion won of loss from tangible asset impairment was also reflected, leading to 193.5 billion won in PAT loss.
Now, SsangYong Motor is focusing all its resources on managing parts supply chain to prevent any disruption in manufacturing as uncertainty is mounting over the Coronavirus-impacted global auto industry.
In the meantime, SsangYong will expand sales by introducing the G4 Rexton (export: Rexton) face-lifted model and re-launching the Tivoli Air (export: XLV), long-bodied Tivoli, in the second half of this year. Also, the company is going through the final quality checks for the first electric sub-mid-sized SUV in Korea to be launched in early 2021.
SsangYong’s labor and management are working closely together to overcome the current crisis, and reshuffling the product portfolio through product development and refresh models in preparation for recovering market in the post-corona era.