Cash-strapped SsangYong Motor may have finally found its way out and safeguarded its future. The company has selected homegrown electric bus maker Edison Motors as its preferred bidder. According to a post on Autospy, analysts estimate the acquisition’s value at KRW 1 trillion (EUR 730 million).
Established in 2015, Edison Motors is a very small company, but it has formed a consortium with Korea Corporate Governance Improvement, Keystone Private Equity, and Semisysco to acquire SsangYong Motor. Along with its sale lead manager EY Hanyoung Korea, SsangYong Motor selected this consortium as its preferred bidder, not just Edison Motors. The South Korean automaker will apply for permission from the court for further proceedings.
SsangYong Motor and EY Hanyoung will sign an MoU with Edison Motors before the end of this month after court approval, as per a report from BusinessKorea. Due diligence, scheduled for two weeks from early November 2021, and negotiations regarding the acquisition price and main contract terms, will decide the final fate of the proposed acquisition.
If Edison Motors does end up buying SsangYong, it would speed up the company’s electrification. Citing Dang Young-kwon, the company’s founder and CEO, a report from The Korea Herald says that the company aims to increase SsangYong Motor’s production volume three times to 300,000 vehicles and make it a profitable company within three to five years. It wants xEVs to account for two-thirds of the production volume: 150,000 pure EVs and 50,000 hybrid EVs.
SsangYong Motor introduced its first EV, called SsangYong Korando e-Motion, in July 2021. The company is late in electrification compared to its rivals, and its first model is not a strong contender either. The Korando e-Motion is a conversion of the ICE Korando, while Hyundai, Kia, Volkswagen, and other competitors have normalised conversion EVs and began launching bespoke EVs now. With this in mind, the company has also planned to develop 5 electric vehicles within four years.
SsangYong plans 5 new electric vehicles
According to an ETnews report on 30 August 2021, Yong-won, legal manager of SsangYong Motor, had discussions with representatives of major parts suppliers detailing the mid-to-long-term plans of EV development. This discussion took place on 24 August 2021.
SsangYong is currently in the process of launching the Korando e-Motion in Europe this month. According to the report, the Pyeongtaek plant is outdated, and the company has made a deal with the city to sell the site and purchase a new site dedicated to eco-friendly cars production.
Featured Image: SsangYong Korando eMotion/Ssangyong
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