South Korean Edison Motors agrees to buy SsangYong from Mahindra

    Edison Motors makes a range of electric buses and trucks, and this acquisition will help add to its portfolio.

    Published On Jan 11, 2022 05:16:00 PM

    18,639 Views

    SsangYong J100

    Edison Motors to acquire SsangYong for 305 billion won(Rs 1,887 crore).

    Mahindra and Mahindra may look to start the new year with some positive news for the debt-ridden South Korean SsangYong Motor Company. 

    • SsangYong sales declined 21 percent last year over 2020
    • SsangYong reported an operating loss of Rs 1,473 crore
    • Mahindra has previously sold rebadged SsangYong cars in India

    According to reports, a consortium led by South Korean electric carmaker Edison Motors has agreed to acquire debt-ridden SsangYong Motor for 305 billion won (Rs 1,887 crore).

    The Korean carmaker has been burdened with debt and its vehicle sales fell to 84,496 units last year, down 21 percent from a year earlier, a regulatory filing from the automaker showed.

    The automaker reported a January-September 2021 operating loss of 238 billion won (Rs 1,473 crore) from revenue of 1.8 trillion won (Rs 11,140 crore).

    SsangYong has been under court receivership since April in an attempt to rehabilitate the carmaker after majority owner Mahindra and Mahindra failed to secure a buyer. Mahindra owns about 75 percent stake in SsangYong as of the end of September, and had been looking for a buyer for all or most of its stake, which it bought when the South Korean automaker was near-bankrupt in 2010.

    Mahindra sold SsangYong products in India like the previous-gen SsangYong Rexton and the rebadged Mahindra Alturas G4 (current-gen Rexton), but the sales were not much to write about.

    SsangYong’s new owners make a range of electric buses and trucks, and this acquisition will add to its portfolio.

    Let us know in the comments if you think Edison Motors has given SsangYong motor company a new lease of life.

    Source

    Copyright (c) Autocar Professional. All rights reserved.

    Comments

    ×
    img

    No comments yet. Be the first to comment.

    Ask Autocar Anything about Car and Bike Buying and Maintenance Advices
    Need an expert opinion on your car and bike related queries?
    Ask Now

    Search By Car Price

    Poll of the month

    The Creta will be the third Hyundai N-Line model in India. Should more mass-market brands have sporty sub-brands?

    Yes, it's something special for enthusiasts

     

    18.34%

    Yes, but only if there is increased performance

     

    44.46%

    No, it's just a gimmick to increase the price

     

    29.36%

    It doesn't always work; just look at Tata JTP

     

    7.83%

    Total Votes : 1570
    Sign up for our newsletter

    Get all the latest updates from the automobile universe