Mahindra Puts Up SsangYong for Sale
Troubled South Korean automaker SsangYong is finally about to witness a new beginning after it filed for bankruptcy in December last year and is currently under court receivership.
According to Nikkei Asia, the parent Mahindra group has decided to sell SsangYong, which is supposed to be the 4th largest South Korean automaker, to a 6-year old electric vehicle startup named Edison Motors. The deal is said to be worth around $260 million, whereas both automaker and the bidder are expected to finalize and ink a corporate agreement towards the end of November. Since SsangYong is under court receivership, it will need court approval for the sale.
Edison was founded in 2015 and its focus is on producing electric buses and commercial trucks. By taking over SsangYong, it wants to set a potential foothold in passenger car market and aims to mass-produce passenger EVs at the automaker’s only automobile factory in Pyeongtaek.
Mahindra had rescued SsangYong in 2010 from bankruptcy but it had no success in turning things around for Ssangyong. The troubles automaker recorded operating losses for 15 consecutive quarters, with sales in decline due to a lack of new models since 2015. In 2020, Ssangyong sold 20% less vehicles than it did in 2019, further worsening its financial woes and eventually declared bankruptcy in December 2020.
SsangYong Tivoli in Pakistan
In Pakistan, Dewan having acquired Brownfield investment status was in process of introducing a range of vehicles including the Ssangyong Tivoli. In March 2018, Ssangong management visited Pakistan to finalize plans with Dewan and they also visited their assembly plant in Sujawal, Sindh. However Dewan reportedly stopped working on the Ssangyong project citing volatile economic situation of the country. But considering the circumstances, both Dewan and SsangYong were never really in position to materialize this project.