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SsangYong Motor to suspend production due to chip shortage

All News 14:09 December 06, 2022

SEOUL, Nov. 6 (Yonhap) -- SsangYong Motor Co., a South Korean SUV-focused carmaker, said Tuesday it will suspend production at its domestic plant for several days this month due mainly to a chip shortage.

SsangYong Motor will suspend its sole car-manufacturing plant in Pyeongtaek, 70 kilometers south of Seoul, from Dec. 8-13, with a plan to resume production on Dec. 14, the company said in a regulatory filing.

Last month, the company graduated from the court-led debt rescheduling program 1 1/2 years after it was placed under court receivership amid the COVID-19 pandemic.

SsangYong applied for court receivership on April 15, 2021, after its Indian parent Mahindra & Mahindra Ltd. failed to attract an investor due to its worsening financial status amid the pandemic.

The Seoul Bankruptcy Court approved SsangYong's debt payment plans in August after the court picked a local consortium led by chemical-to-steel firm KG Group as the final bidder to acquire the debt-laden company in June.

As of Sept. 28, KG Group owns a 61.88 percent stake in SsangYong, with Mahindra holding a 10.15 percent stake and the remainder by others.

From January to November, SsangYong's vehicle sales jumped 39 percent to 104,566 units from 75,351 during the same period of last year.

Its lineup consists of the Tivoli, Korando, Rexton and Rexton Sports SUVs. It launched the all-new Torres SUV in the domestic market in September and began to ship the model to Latin American countries, such as Chile.

Separately from the 250,000-unit-a-year Pyeongtaek plant, SsangYong operates an engine plant in Changwon, 400 kilometers south of Seoul.

This file photo provided by SsangYong Motor shows its plant in Pyeongtaek, Gyeonggi Province. (PHOTO NOT FOR SALE) (Yonhap)

This file photo provided by SsangYong Motor shows its plant in Pyeongtaek, Gyeonggi Province. (PHOTO NOT FOR SALE) (Yonhap)

kyongae.choi@yna.co.kr
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