The SsangYong saga is evolving! Surprise buyers line up to save Korea's number three brand, whose future will be known by November
The future of SsangYong suddenly looks rosy, and a surprising number of cashed-in investors are lining up to buy it.
This is far from the end for SsangYong, as two more large local Korean conglomerates have joined the bidding for the struggling automaker.
Two large groups, SM Group and a consortium led by Edison Motors, join a total of nine potential new owners, many of whom also see US-based Cardinal One Motors as a leading player.
SM Group is Korea's 38th largest corporation with assets in the chemical, construction, shipping and broadcasting industries.
It has been called a leading bidder as it already manufactures automotive parts through its subsidiary Namsun Aluminum. According to Korea Times, SM Group has been looking to grow by investing in the electric vehicle market, for which SsangYong says it is well positioned.
A spokesman for SM Group told Korean media that, unlike some competitors, the company has cash reserves to finance the acquisition and does not need outside financial support. SM Group had previously bet on SsangYong when it was sold to China's SAIC Motor during the GFC. He lost out to Indian corporate giant Mahindra and Mahindra but continues to see the brand as a way to diversify.
Meanwhile, Edison Motors is a commercial vehicle manufacturer specialized in the bus industry. The company has been producing compressed natural gas (CNG) and conventional combustion engine buses since 1998, and currently operates its own battery-electric buses throughout Korea with a range of 378 km.
Problems aside, SsangYong is full steam ahead teasing what it has in store for the future.
Edison Motor is eyeing entry into the passenger electric vehicle market and is looking at an EV-ready SsangYong as a way to accelerate its entry into the market. He formed a consortium with a private equity fund and others to help finance the acquisition.
As announced two weeks ago, one of the first and leading contenders for the purchase of SsangYong is the American company Capital One Motors. Raising funding from dealer groups across the US, Capital One rose from the ashes of HAAH Automotive Holdings, which recently filed for bankruptcy following a failed attempt to import Chery car kits into the US. Previously, he also planned to bet on SsangYong.
Its directors said HAAH failed because of the tough tariffs on Chinese imports imposed by the Trump administration. He hopes to offer SsangYong access to the lucrative US market as he has a free trade agreement with South Korea. It is unlikely that Capital One will raise financing for the acquisition of SsangYong without the help of the Korea Development Bank.
The sheer number of bidders for SsangYong came as a surprise, according to Korean media reports, as the brand's decision to sell its 42-year-old ancestral Pyeongtaek plant appeared to be popular with potential investors. The brand claims the move from the old facility will help fund the construction of a new facility on the outskirts of the same city, allowing it to retain its workforce while modernizing its facilities for its future electric lineup.
The mid-size electric vehicle Korando e-Motion is slated to launch before the end of the year.
SsangYong is due to launch its first electric car, the Korando e-Motion, before the end of the year in Europe, and has announced that its future direction is retro-styled hard electrified models, as shown in the recent J100 and KR10 concepts.
SsangYong's lead investors will file bids for the brand in September, and a court-appointed brand advisor will aim to confirm the sale (and SsangYong's future) by November.
