SsangYong Motor Company will be taken over by a local consortium led by Edison Motors after Mahindra & Mahindra is forced to let go of the debt-ridden South Korean carmaker. SsangYong will be acquired by the electric car company Edison Motors for 305 billion won (about $254.65 million). As compensation for their investment, the consortium is seeking a 95 percent stake in SsangYong, the automaker said in a regulatory filing. Mahindra held the majority stake at 75 percent.
The announcement comes as the company is struggling to find a buyer with a negative balance sheet. In 2021, SsangYong’s sales decreased by 21 percent, resulting in an operating loss of $199.3 million on revenue of $1500 million. The manufacturer’s sales were 84,496 units.
SsangYong was acquired by Mahindra in 2010 after it was close to bankruptcy. A number of turnaround strategies for the brand were implemented, including introducing new products and retailing SsangYong models in India. Unfortunately, the automaker’s financial health has deteriorated in recent years, which led Mahindra & Mahindra to let go of the business.
In its statement, Mahindra & Mahindra said, “It is encouraging to hear that Edison Motors consortium has formally agreed to buy SYMC. The acquisition will progress to the next phase in a defined time frame. We will work with the new investor to facilitate the transition.”
As a result of several failed attempts by Mahindra to find a buyer, SsangYong has been in court receivership since April of last year. In India, Mahindra sells the rebadged SsangYong Rexton SUV as the Alturas G4. In addition, Mahindra and SsangYong co-developed the X100 platform, a foundation for products such as the Tivoli and XUV300.
At present, Edison Motors focuses on electric buses and commercial trucks, but it intends to expand its passenger car offerings with Ssangyong.
