Stronger Korean won puts SsangYong Motor in the red

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Stronger Korean won puts SsangYong Motor in the red

SsangYong Motor, the Korean unit of Indian carmaker Mahindra and Mahindra, shifted to a net loss in the first quarter this year from a year earlier due to hefty currency losses, the company said Friday.

SsangYong Motor swung to a net loss of 13.9 billion won ($12.22 million) for the first three months of the year, from a net profit of 2.3 billion won a year earlier, SsangYong said in a statement.

“The won’s strength against the dollar and increased costs cut into the quarterly bottom line,” the statement said.

The maker of the Tivoli and Rexton sport utility vehicles also posted an operating loss of 15.5 billion won in the first quarter from an operating profit of 8.1 billion won a year ago, it said.

Sales fell 3 percent to 788.7 billion won from 813.2 billion won over the cited period. Vehicle exports fell 11 percent year on year to 9,878 units in the first three months from 11,044 cars, while domestic sales rose 7.6 percent to 24,350 from 22,622, the company said.

SsangYong said the SUV-focused lineup recently joined by the flagship G4 Rexton SUV will help it achieve improved sales this year. Mahindra and Mahindra owns a 72.85 percent stake in SsangYong Motor.

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