M&M’s South Korean Subsidiary SsangYong’s Resolution In Sight: Motilal Oswal
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Motilal Oswal Report
Mahindra and Mahindra Ltd.’s management hosted a concall to update on Ssangyong Motor Co., its decision to not pursue the Ford joint venture further, and supply-side issues impacting the auto business.
The Ssangyong resolution seems near as there is a court deadline (of February 2021) to get a buyer or proceed with bankruptcy.
The decision to not go ahead with the Ford JV has been a surprise as there were credible synergies that were visible.
However, the management indicated that the increased investment requirement made this JV a less attractive proposition.
Both these decisions signal seriousness of its intent to correct capital allocation even within the auto business.
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