SsangYong Motor Company reported a deepening net loss of KRW193.54bn (US$157m) for the first quarter of 2020, as concern rises about the viability of the South Korean SUV manufacturer.
The company, which is owned 80% by Indian automaker Mahindra & Mahindra, posted its 13th consecutive quarterly loss in January-March 2020, with global production and sales disrupted by the COVID19 coronavirus outbreak.
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In the same quarter of last year, Ssangyong posted a net loss of KRW26.12bn.
The company also reported a deepening operating loss of KRW98.63bn, from KRW27.80bn a year earlier, while revenue fell 30% to KRW649.19bn from KRW933.21bn.
According to local reports, Ssangyong said its main auditor KPMG Samjong Accounting Corporation refused to give an opinion on its ability to run normally as a going concern follow the release of its latest results, triggering concerns about the future of the company.
Ssangyong reportedly suggested the process of delisting a company normally begins when an accounting firm delivers “no opinion” on the company’s annual earnings.
Last month Mahindra & Mahindra agreed to inject KRW40bn (US$33m) into Ssangyong to help it stay afloat through the global COVID19 coronavirus pandemic.
But this was far short of the KRW230bn (US$187m) in fresh capital Mahindra said earlier this year was needed to return Ssangyong to profitability over three years.
Last week, Ssangyong launched a new entry level version of its Tivoli SUV in Europe to help revive sales.
The new model is fitted with a 1.2-litre engine and will be sold alongside the existing 1.5-litre turbocharged petrol and 1.6-litre diesel versions.
