Reprofiled Rhino ute revealed

An image of the model’s update has surfaced as a major South Korean news agency reports on the latest about the brand’s fight for survival.

LEAKED images of an update for the Ssangyong ute we know as the Rhino have surfaced on the internet.

The beavily facelifted one-tonne ute – which most of the world knows as the Musso (a name it once had here, before it then rebadged as the Actyon Sport, before becoming Rhino on local release in 2019) - has been spotted and reported on by Mocar, a YouTube commentator popular in South Korea.

It’s badged as the Khan ute in its home country – yes, if only these people could decide on one name and stick to it, right?

The new look is bolder and brings a strong, blunt nose with larger headlights flanking a tall grille.

The model’s unexpected unveiling sends a strong signal to though wondering about what SsangYong has been up to while weathering troubles in its home market in the face of bankruptcy. An issue that has not affected operations in New Zealand; it’s business as usual for the independent distributor.

Today a major South Korean news agency, Seoul-based Yonhap News Agency, reported that the make’s main creditor as saying it has yet to decide on the cash-strapped automaker's push for a speedier bankruptcy procedure.

This comment comes in the wake of SsangYong having failed to receive approval from its potential buyer, according to the agency.

SsangYong, the smallest of South Korea’s five car makers, has been under court receivership there since December, as it defaulted on loan payment of about $NZ199 million.

the Rhino ute in current form.

India’s Mahindra and Mahindra, which holds a 74.5 percent stake in SsangYong, has been in talks with HAAH Automotive Holdings, a United States vehicle distributor, to sell its majority stake, but they have not yet reached an agreement. 

HAAH is a California-based business that also acts for a newcomer brand, Vantas, which has developed a medium sports utility similar in size and look to a Toyota Highlander. Described on the HAAH website as being a ‘near-premium’ product, the vehicle is produced in North America and set to go on sale in the US later this year, as 2022 model.

 Choi Dae-hyun, vice president of the state-run Korea Development Bank (KDB), said the potential buyer did not make a final decision on the pre-packaged plan due to SsangYong's delayed document submission.

The pre-packaged plan is a combination of workout and court protection under which a restructuring plan is agreed upon prior to the filing of the bankruptcy case to streamline the bankruptcy process. It starts with the approval of creditors who hold more than half of a company's debts.

If SsangYong fails to draw fresh investment or submits an unfeasible plan, its liquidation may be unavoidable, Yonhap quotes Choi as saying.

The agency says industry sources have related that HAAH Automotive proposed acquiring a 51 percent stake in SsangYong, but wanted the bank to partner.

The KDB has been under pressure to inject additional funds into SsangYong to avoid job losses and bankruptcy of its contractors.

SsangYong has faced difficulty at production lines in Pyeongtaek, about 70 kilometres south of Seoul, as some of its contractors refused to supply parts on delayed payments for their goods, Yonhap says

SsangYong files for bankruptcy, continues trading

National distributor Great Lake Motors assures Kiwis it’s ‘business as usual.’

SOUTH KOREAN recreational vehicle specialist SsangYong Motor has secured protection under South Korea’s bankruptcy administration process after it failed to repay creditors a loan worth roughly $NZ76,000,000.

The company has been given three months to work through its affairs, in hope that it will be bought during that time, and will continue to operate normally during that period, says Andrew Bayliss, general manager for the New Zealand distributor, Great Lake Motor Distributors.

Insofar as the brand’s affairs in NZ are concerned, it is business as usual, he says.

He is also confident the situation will end well, asserting “there is a buyer in the wings” for the make.

“We expect that deal to go ahead.

“For New Zealand it is business as usual. As it is in other markets. We are still getting product, we are still getting cars produced. We have got cars being despatched today, in fact.

“For New Zealand, we do not anticipate any interruption.”

Mr Bayliss disputes the brand has filed for bankruptcy, though this has been reported globally. The Korean administration process is, however, similar to the American Chapter 11 administration processes which is used to assist a business restructure often prior to a sale.

Entering into receivership in South Korea means SsangYong has volunteered to be dramatically restructured, according to a report on the website of Forbes magazine. 

It said all of SsangYong Motor’s assets have been frozen under the receivership programme, which protect it from action over its outstanding debts and receivables.

A report on the website of British weekly motoring publication Autoexpress cites SsangYong as claiming it has delayed the repayment due to worsening business conditions globally, and having failed to come to an agreement to extend repayment deadlines with foreign lenders has applied for receivership. 

“The company plans to resolve the current liquidity issue early before the rehabilitation procedures are commenced by applying for Autonomous Restructuring Support,” read a statement.

Autonomous Restructuring Support gives the brand a further three months to agree resolutions with creditors before court action. 

Indian automotive giant Mahindra and Mahindra has owned a 70 percent stake in SsangYong since 2011, and currently owns 75 percent of the business. It has been looking to sell on the brand.

The make, South Korea’s fourth largest car maker, has sustained 15 straight losing quarters. Its main creditor is the Korea Development Bank (KDB), though foreign financial institutions are also owed money. 

SsangYong sales globally for 2020 are around20 percent down on 2019. 

A SsangYong spokesperson in South Korea said: “We very much regret this situation which is the result of the difficulties being experienced from the worldwide COVID-19 situation, and the concern caused to our partners and stakeholders, especially our employees, sales networks and financial institutions.  

“We are making every effort to transform the situation, and to build a more robust and competitive company for the future.”

Great Lake Motors has held SsangYong distribution rights in NZ since 2010. GWM is run by Taupo father and son Rick and Deon Cooper. Models represented in this market include the Rexton, Tivoli and Korando SUVs and the Rhino utility.