It now plans to launch the first of a raft of EVs, starting in 2023 with the U100. SsangYong has also reported strong sales in its domestic South Korean market for the Torres SUV which now forms the platform for export sales and is expected in Australia next year.
SsangYong’s owner, South Korean chemical and steel conglomerate KG Group, offered $907.7 million for the car-maker in June.
It was accepted and started the process of completing the repayment of the rehabilitation debt of $340 million this week and now plans to increase sales and become profitable. The debt payment went to creditors, subcontractors and former owner Mahindra & Mahindra.
SsangYong said it will accelerate an “early management normalisation” and has already laid the foundations for its business stabilisation and future growth development following the acquisition by KG Group and the completion of the corporate rehabilitation procedure.
SsangYong in September appointed Kwak Jea-sun as its new chairman and Jeong Yong-won as CEO. Further executive appointments are expected.
The rebirth of SsangYong started in July when KG Group and SsangYong’s labour and management signed a three-party special agreement focusing on job security and long-term investment.
In a statement, the company said labour-management cooperation was strengthened to further solidify labour relations and “to avoid a repeat of previous failures in this area.”
The KG Group funded the debt repayment through a second round of capital investment in October.
It said that after repaying its rehabilitation debts “it is accelerating the improvement to the company’s financial structure leading to the swift normalisation of business.”
“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,” its statement said.
“The brand is also focusing on achieving growth through the successful international launch of the new Torres SUV (which sits in size between the Korando and Rexton SUVs) model.
“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.”
SsangYong’s woes started in late 2020 when owner Mahindra & Mahindra tired of the South Korean company’s debt position and put it on the market. Without funds from Mahindra, SsangYong filed for bankruptcy.
South Korean bus and truck maker Edison Motors led a group of investors with a bid of $348 million for the company in late 2021 but couldn’t complete the payments. KG Group then stepped up with its bid.
SsangYong Motor officials said on behalf of the company it “would like to express our sincere gratitude to all stakeholders, including the Seoul Rehabilitation Court, creditors and partners for their understanding and support in successfully completing the corporate rehabilitation procedure, and laying the foundation for the company’s business normalisation.”
“We particularly reach out to our customers to thank them for their loyalty, and as a completely new and transformed business, aim to reward them by providing the best possible customer service, and thank them for their patience.”
By Neil Dowling
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