SEOUL — SsangYong Motor said it has approved the use of a 40 billion won ($32.86 million) special fund raised by its biggest shareholder to help ease liquidity concern amid cooling demand due to the coronavirus.
SsangYong said its board approved the use of the fund at a meeting on Friday, and that it will use it to resolve imminent liquidity issues and to relieve market concern.
Last week, Mahindra and Mahindra scrapped a $423 million investment plan in its struggling South Korean unit as automakers save cash to ride out the coronavirus crisis.
Mahindra said it would consider a special one-time infusion over the next three months to help SsangYong continue operating while it finds other sources of funding.