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Monday, November 14, 2022

SsangYong Exits Corporate Rehab With New Owner


SsangYong Motor has announced that it had completed its court-led corporate rehabilitation. Thanks to its acquisition by the KG Group, the automaker had managed to pay off its rehabilitation debts some 18 months after the start of its rehabilitation last April 2021.

KG Group, a Korean steel and chemicals firm, got the go-signal to acquire SsangYong just last August after South Korea’s Fair Trade Commission gave the greenlight that the acquisition would not hurt market competition. The KG Group now has a 61 percent stake in the automaker.

The revitalized SsangYong now plans to accelerate its early management normalization by increasing sales and quickly making a profit. SsangYong Motor has already laid the foundations for its business stabilization and future growth development following its successful M&A and the completion of the corporate rehabilitation procedure.

SsangYong appointed Kwak Jea-sun as its new chairman and Jeong Yong-won as CEO September, and steps were taken in October to stabilize management with further executive appointments and organizational reforms to actively respond to changes in the new business.

The KG Group also completed a second round of capital investment in October to repay priority claims and as part of its operational financing plan.

The future growth of SsangYong will be based on the company’s move towards electrification, again supported through additional capital funding from the KG Group. The brand is also focusing on achieving growth through the successful international launch of its new Torres SUV model (see lead photo). The unveiling of Torres in the domestic market was extremely well received, and is already leading the increase in sales while strengthening the brand’s position in the global market. Continuous investment and technology development for electric vehicles (EVs) is progressing, with the U100, the first of these scheduled for release next year.

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