+ Click to Enlarge KOREAN LOOK: Bold, chromed treatment for the grille, snake's eyes for the headlights.

May 31, 2002

The SsangYong Motor Company showed a record profit in the first quarter of this year as a restructuring programme, instituted after the company broke away from the ailing Daewoo Motor Company two years ago, began to bear fruit.

The company earned the equivalent of $32.5-million in the period, thanks mainly to brisk domestic sales. Operating profit doubled to $42-million and sales rose by 48% to $619-million.

SsangYong, Korea's third-largest automaker, sold 38 263 SUVs (Musso, Korando and the new Rexton) in the first quarter, 21% more than in the same period last year. Unit sales are expected to rise 18 % for the year to 148 000.

Director of international business, S J Bang, said: "Costs fell when creditors swopped debt for equity and agreed to lower interests on existing loans. The financial planners are confident that the company will be able to earn $117-million this year."

Operating profit is expected to rise 65% to $196-million for the full year while pretax profit, excluding one-time gains or losses, will probably surge to $105-million in 2002 - a huge increase from the $14-million shown last year.

The company is now developing a new crossover recreational vehicle and a common-rail diesel engine as part of its growth programme.

Terry Gregory, MD of SsangYong Motor Distributors SA, said sales were continuing to grow in this country: "We are happy with the way the brand is making headway in SA. Resale values are the best in the segment and we have a committed dealer network.

"The future of the brand is secure in SA with strong financial backing from Imperial Holdings, a strong dealer network and positive growth and profits in Korea."

SsangYong's Musso and Korando vehicles have Mercedes engines and, the importer says, "offer quality engineering, great comfort, refined performance and excellent value for money".

"The vehicle is a perfect balance between on-road performance and off-road ability. The company intends to expand the model range in South Africa perhaps a double-cab version of the Musso and the new Rexton, designed as a competitor to the Mercedes-Benz M-Class and BMW X5," the company said.