SsangYong’s New Zealand distributor believes a solution to keeping the SUV marque alive might rest with South Korea’s government.

QUIET confidence SsangYong can weather a financial storm and keep presence in New Zealand has been expressed by the maker’s local distributor.

Andrew Bayliss, general manager of SsangYong NZ, says information from the South Korean SUV and ute manufacturer in respect to an apparent funding crisis triggered by the coronavirus outbreak is continuing to roll out.

He and Rick and Deon Cooper, the father and son whose Great Lake Motors has held SsangYong distribution rights since 2010, are largely reliant on international media reports of an unfolding story.

The genesis is a decision, made public several days ago by marque owner, India-based Mahindra and Mahindra, to u-turn on plan to supply SsangYong with investment funding thought crucial to its ongoing survival. 

The good health SsangYong has been experiencing in New Zealand has not replicated for the brand’s overall standing – it has been hit by 12 consecutive quarters of losses.

The $NZ710 million Mahindra had promised in February was intended make SsangYong profitable by 2022.

It has been wholly withheld to prop up Mahindra, which made the decision to cut costs after experiencing an 88 percent drop in its own sales in March due to Covid-19 related market decline.

The Koreans have now been advised to seek “alternate sources of funding”.

Bayliss said he needs more clarity from SsangYong’s head office, but he has heard suggestion from there to date that Mahindra is working to force the Korean government to release some of its $NZ134 billion Covid-19 war chest set up to protect Korean businesses.

“The Korean Government basically has the cheque book open around businesses that are in trouble regarding the Covid-19 situation.

“Mahindra is unwilling to put any more funding in and they (the South Korean Government) have $US80 billion available.”

SsangYong NZ had begun the year strongly, launching a new Korando medium sports utility which has been well-received. 

“We came into 2020 very optimistic. We have new product just landed and, all things being equal and assuming there are still customers out there, we will come back after the market in a fairly strong position.”

Mahindra’s financial backing to date has brought the Korando into market and paid for new versions of its Rhino ute and Rexton large SUV.

The tap has not been completely turned off. Mahindra says it will consider an almost $NZ84 million lifeline to help SsangYong survive the next three months, with Mahindra’s board authorising the potential move. 

And it will also provide its own platforms for use in future SsangYong product without any capital expenditure, including the latest Mahindra W601 platform. 

Yet it is conjected the lack of funding will put the brand’s electrification plans on hold. SsangYong had planned to unveil a fully electric Korando variant with a 450km range at the Geneva motor show, which was ultimately cancelled over COVID-19 fears. 

Mahindra owns a 74.65 percent stake in SsangYong,