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Saturday, October 23, 2021

South Korean-Led Consortium To Buy SsangYong


SsangYong Motor named a group led by South Korean electric bus and truck maker Edison Motors as its preferred new owner.

SsangYong was put under court receivership in April after it filed for court receivership in December. The company this week filed an application with the Seoul Bankruptcy Court indicating that it hopes to be purchased by a consortium led by Edison Motors.

Edison Motors itself is quite young—established only in 2015. However, they have ambitions to turn SsangYong in just three to five years. The plan is focused on transforming the South Korean SUV specialist into an EV-focused carmaker. This was revealed by Edison Motors’ Chairman Kang Young-kwon.

SsangYong will be able to produce up to 300,000 vehicles a year on the three assembly lines at its plant in Pyeongtaek.

SsangYong has been majority-owned by India’s Mahindra & Mahindra since 2011. Mahindra has been looking for a buyer for all or most of its 75 percent stake, which it bought when SsangYong was near-bankruptcy in 2010. Mahindra has struggled to turn around SsangYong.

SsangYong now intends to sign a letter of intent with Edison to finalize details, including the purchase price. SsangYong could cost the consortium, which includes a South Korean investment fund, as much as one trillion won (USD 849 million).

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