October 30, 2024

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SsangYong Motor said on Aug. 6 it is considering some belt-tightening measures due to increased losses.

In a letter sent to employees last week, SsangYong Motor President and CEO Yea Byung-tae said the company will begin discussing a set of cost-cutting measures, including reducing the number of executives by up to 20 percent, according to a company spokesman. 

The measures under review are aimed at “preemptively” responding to rising costs and worsening profitability, the CEO said in the message.

In the January-June period, SsangYong Motor’s net losses almost doubled to 77.6 billion won ($64 million) from 39.6 billion won a year earlier.

Lower demand for its models and higher marketing costs in a tougher competition with rivals ate into the first-half bottom line. The company sells SUVs only, and its lineup is composed of the flagship G4 Rexton, Tivoli, Korando C and Korando Turismo. 

Last week, SsangYong Motor and its union agreed on a wage deal for a 10th consecutive year without staging a strike.  

By Ram Garikipati and newswires (ram@heraldcorp.com)