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SsangYong rebuilding begins in earnest, as Australian sales pick up

A steady new SsangYong said it plans to accelerate the rollout of more SUVs and electric vehicles to bolster profitability and planned viability.

The Korean minnow brand said on November 11 that it had written off its recovery debts using funds from its acquisition of KG Group, and thus completed the company’s recovery procedure after approximately 18 years. month.

SsangYong Motor has been taken over by the court since April 2021 as former parent company Mahindra & Mahindra failed to find new investors amid the pandemic and financial problems.

The company plans to “accelerate the normalization of initial management by increasing sales and rapidly generating profits,” the company said, claiming it had laid the groundwork for business stability and future growth development.

SsangYong’s future growth plan will be based on the company’s move towards electrification, supported through additional funding from the KG Group, with a model called the U100 (understood as EV Torres). advertised as the first scheduled release for next year.

In the near term, there are also plans to make an international launch for the petrol-powered Torres which has proven to be a success at home, with the SsangYong bank tens of thousands of pre-orders.

SsangYong appointed Kwak Jae-sun as new president and Jeong Yong-won as CEO in September, aiming to improve relations with its workforce.

KG Group also completed second round of capital investment in October to repay priority claims and as part of the operational funding plan.

“On behalf of everyone at SsangYong Motor, we would like to express our sincere gratitude to all stakeholders, including the Seoul Rehabilitation Court, creditors and partners for their understanding and support. their assistance in successfully completing the company recovery procedure and laying the foundation for the company’s growth. business normalization, the company said.

“We specifically reach out to our customers to thank them for their loyalty, and as a completely new and transformed business, we aim to reward them by providing excellent customer service. provide the best customer service possible and thank them for their patience.”

SsangYong story background

Seoul Bankruptcy Court approved the latest SsangYong rescue plan in August – paving the way for some overdue financial stability.

The Yonhap The news agency reported that SsangYong’s debt settlement plan – submitted to the Court at the end of July – has received “overwhelming” support from creditors and other stakeholders.

One The consortium is led by chemical and steel corporation KG Group was given the green light to buy a majority stake (supposedly 61%) in the perennially indebted automaker. KG Steel, part of the KG Group, previously supplied components to SsangYong.

Its purchase price is said to be more than three times the price South Korean electric bus maker Edison Motors previously agreed to pay SsangYong, before their deal fell through.

SsangYong’s family life has been difficult for many years and it never seems to have long-term stable parents.

Daewoo bought a controlling stake in the company in 1997, only to sell it in 2000 when it was experiencing dangerous financial difficulties of its own.

It went through a tumultuous couple of years under Chinese ownership, with SAIC Motor acquiring 51% in 2004 but walking away in 2009 and leaving it in the take-up position.

Mahindra & Mahindra was the next parent company to adopt SsangYong, acquiring a 70% controlling stake for 523 billion won in 2011.

SsangYong currently operates the entire operation of a subsidiary in Australia and sells Musso and Rexton and Korando SUVs. It is also working to launch Sharp Torres SUVs in 2023.

The company just posted record monthly sales results in a row in Australia and year-to-date sales of 2967, up 17.9% year-on-year. This means it will break annual records in 2022, having sold 2978 vehicles in 2021 and 2,645 vehicles back in 2005.

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THAN: SsangYong Torres SUV successful at home, Aussie pushed back
THAN: SsangYong may be acquired by Korean steel company – report
THAN: SsangYong attracts four bidders after acquisition deal collapses – report
THAN: SsangYong, the history of a brand with an uncertain future
THAN: Edison Motors asks the court to save the acquisition of SsangYong – report
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