Ssangyong Motor workers this week accepted a proposal by the company's management for a cut in their annual bonuses and other benefits as the South Korean automaker continued to struggle with declining sales.
Ssangyong global sales declined by over 6% to 119,876 units in the first 11 months of the year from 127,818 units a year earlier, reflecting particularly weak export sales.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The company has also been held back by stronger competition in its home market this year from Hyundai-Kia which has strengthened its SUV ranges over the last year.
In the first nine months of 2019, Ssangyong reported a net loss of KRW185bn (US$159m), more than triple the loss made in the same period of last year.
According to local reports, workers agreed to return part of their annual bonuses and performance related pay to the company and forego other benefits, including medical cover and family support, as part of a self help plan which the company hopes will allow it to continue operating through the current downturn.
Ssangyong is also in talks with its Indian parent Mahindra & Mahindra, which owns 80% of its equity, and other shareholders to find a solution to the current market weakness.
