Following a year-long search, struggling Korean automaker SsangYong has discovered a purchaser.
SsangYong on Monday named the customer as a consortium led by fellow Korean automaker Edison Motors. The consortium has agreed to pay 305 billion gained (roughly $255 million) for Ssangyong, whose majority shareholder is India’s Mahindra with a 75% stake.
Edison Motors was solely established in 2015. The corporate builds electrical buses and is growing electrical industrial vans, and if all goes to plan will begin promoting electrical crossovers and SUVs underneath the SsangYong model.
SsangYong final July confirmed off the design for an electrical crossover dubbed the J100, along with the design for a Jeep Wrangler-esque SUV dubbed the X200. The corporate additionally mentioned it deliberate to launch an electrical model of its current Korando crossover.
Mahindra bought SsangYong in 2011 however struggled to show it right into a viable enterprise. Mahindra ultimately held again on additional funding in SsangYong because it regarded to protect money in view of its personal declining gross sales, together with canceling a deliberate $406 million funding again in 2019. After canceling that funding, Mahindra began its seek for a purchaser.
With out the brand new funds, SsangYong quickly bumped into insolvency and was ordered by a chapter court docket in 2020 to restructure. SsangYong like most automakers has been damage by the slowdown attributable to Covid-19, although its gross sales had been already slowing previous to the pandemic. It bought 132,799 automobiles in 2019, which was down from 141,995 the yr prior. Its 2020 gross sales tally dropped to about 107,000 automobiles, and 2021’s tally got here in at simply 84,000 automobiles.