A top executive of Mahindra & Mahindra, the Indian auto giant that acquired SsangYong Motor in 2010, is in town to seek support for its ailing South Korean subsidiary, according to industry sources Thursday.
Mahindra & Mahindra’s Managing Director Pawan Goenka (M&M)
M&M’s Managing Director Pawan Goenka’s visit to Seoul comes ahead of Ssangyong Motor’s board meeting slated for Jan. 30. He currently serves as chairman of SsangYong Motor’s board.
A SsangYong Motor official told The Korea Herald that the company is not aware of his specific schedule here, but part of his schedule includes meeting with SsangYong Motor officials to discuss issues prior to the board meeting.
It is also highly likely that he will meet with officials of Korea Development Bank, the main creditor bank of SsangYong Motor, to seek financial help for the cash-strapped unit.
Industry sources said that Goenka will also meet with some high-ranked Korean government officials including Lee Mok-hee, who is in charge of the presidential job committee, and Moon Sung-hyun, head of the Economic, Social & Labor Council at Cheong Wa Dae, during his two-day visit.
Market insiders are closely watching whether M&M – which acquired SsangYang Motor for 522.5 billion won ($450.7 million) -- will commit additional investments.
Since the acquisition, M&M injected 80 billion won in 2013 and 50 billion won earlier this year, raising the Indian company’s stake in the Korean automaker to 74.65 percent.
By Kim Da-sol (email@example.com