Japan events to hit Ssangyong auto parts supplies: M&M
18 Mar 2011
Auto major Mahindra & Mahindra Ltd expects its majority-owned South Korean unit, Ssangyong Motor Co to face auto components supply problems over the short term due to the events in Japan.
However, the auto major's own domestic operations would not be affected as it does not source parts from Japan, Pawan Goenka, president of automotive and farm equipment business at Mahindra, told Dow Jones Newswires on Thursday.
Goenka said Ssangyong, which sources a chunk of components from Japan would face an impact in March. Goenka has been appointed the new chairman of the South Korean automaker. (See:M&M's Pawan Goenka to head SsangYong Motor Co board)
Mahindra, India's biggest sport-utility vehicle maker by sales, holds a 70.03-per cent stake in Ssangyong.
Japan is reeling under a series of disasters after a 9.0-magnitude earthquake followed by a tsunami hit the country on 11 March. The earthquake was the strongest in recorded histrory. The battered country is now fighting to control radiation leaks from damaged nuclear power plants.
The cataclysmic events have not only claimed thousands of lives, many companies in several sectors have been forced to suspend manufacturing activity to cope with damaged facilities and planned power outages. Auto makers including Toyota Motor Corp, Honda Motor Co, Nissan Motor Co and Suzuki Motor Corp have stopped production at their factories since Monday.
According to Goenka, Mahindra and Ssangyong have set up a joint panel to work out operational synergy.