SsangYong to be sold to South Korean EV start-up for pennies on the dollar – report
Indebted Korean manufacturer SsangYong is poised to sell to a Korean electric vehicle start-up before year’s end.
South Korean carmaker SsangYong looks set to be sold off to a local electric vehicle (EV) outfit named Edison Motors. It seems the beleaguered manufacturer has finally found a way out of bankruptcy, after almost a year in search of a fresh start.
According to Nikkei Asia the buyout is led by six-year-old EV start-up Edison Motors, but also includes a South Korean investment fund. SsangYong reportedly chose the consortium based on offer price, members’ fundraising potential and future plans. The deal is estimated to be worth $260 million ($AU347.8 million), according to insiders close to the negotiations.
Before a takeover is actioned, approval is needed from the government, as SsangYong is under court receivership – but a final corporate agreement is expected to be completed late in November 2021.
SsangYong’s new owner was founded in 2015 and manufactures electric commercial vehicles including buses and trucks. Reasons behind Edison Motors’ interest in the SUV and ute manufacturer include an intention to enter the passenger car market, while also being able to mass-produce EVs at SsangYong’s factory in Pyeongtaek, South Korea.
SsangYong (as an automobile manufacturer) was formed as part of the SsangYong Group in the late 1980s, where it benefitted from a partnership with Daimler, which allowed it to develop the Musso SUV with Mercedes-Benz technology.
SsangYong Motor (as the car making arm was known) was sold off in 1997 as the conglomerate navigated through the Asian financial crisis. It has since passed through the hands of Chinese group SAIC (owners of today’s MG and LDV brands) and then India’s Mahindra & Mahindra before entering its current financial woes.
The brand is currently the fourth-largest South Korean car manufacturer.
SsangYong has been in and out of the Australian market for more than 20 years, the most recent relaunch occurring in 2018. Throughout SsangYong’s bankruptcy period the Australian arm has remained fully operational and “business as usual”.
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