Korea’s SsangYong Motor Company has recorded a record profit in the first quarter of the year, is expanding its South African model range.
SsangYong Motor Company has recorded a record profit in the first quarter of the year, after breaking away from troubled Daewoo two years ago.
The Korean manufacturer earned R318 million in the January to March period, a quarterly record compared with a loss shown last year. Sales also rose 48 per cent.
SsangYong, Korea’s third largest automaker, sold 38 263 of its sport-utility vehicles (Musso, Korando and the newly launched Rexton) in the first quarter of this year, amounting to 21 per cent more than in the same period last year. Unit sales are expected to rise 18 per cent over last year to 148 000 vehicles this year.
"The company was able to reduce financial costs after the creditors swapped debt for SsangYong Motor’s equity and agreed to lower interest on existing loans," said S J Bang, director, international business, for SsangYong in Korea.
Other good news from SsangYong is that the company is currently developing a new crossover recreational vehicle and a common-rail diesel engine as part of its growth programme.
In South Africa, Ssangyong says it intends to expand the local model range, with possible newcomers including a double cab version of the Musso and the Rexton, designed as a competitor to the Mercedes-Benz M-Class and BMW X5.
SsangYong is continuing its growth in the local market, says Terry Gregory, managing director of SsangYong Motor Distributors, South Africa.
"We are happy with the way the brand is making headway in South Africa. Resale values are of the best in this segment, and we have a committed dealer network out there supporting the current SsangYong owners,” adds Gregory.
"With strong financial backing from Imperial Holdings providing a level of comfort for SsangYong owners, a strong dealer network and positive growth and profits in Korea, the future of the brand in South Africa is secure," said Gregory.