SsangYong eyes electric future under new owners – UPDATE

UPDATE, January 12, 2022: The sale of SsangYong to a consortium led by electric truck and bus manufacturer Edison Motors has been finalised, but for the lower price of US$255 million (AU$354 million).

The new investors had originally submitted an offer of US$260 million (AU$360M), but adjusted the bid to the lower amount following a more comprehensive review of SsangYong’s troubled financials.

The sale was expected to go through before 2021 came to a close – a year after the Korean carmaker first filed documents to the Seoul Bankruptcy Court.

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October 27, 2021: SsangYong may have found a new owner, with a consortium made up of an electric vehicle manufacturer set to lead the company into a new era.

Edison Motors, a maker of electric trucks and buses, heads a group of investors comprised mainly of private equity companies – which put forward a successful offer of approximately US$260 million (AU$350m) according to Nikkei Asia.

SsangYong named the Edison Motors consortium as the preferred bidder in the Seoul Bankruptcy Court earlier this week. The carmaker has been under receivership since April, as authorities sought to help the debt-ridden company find a new owner following Mahindra & Mahindra’s decision to sell its 75 per cent stake.

Despite the turbulent times, SsangYong has been pushing ahead with the development of its future electric cars, with a prototype of its battery-powered J100 four-wheel-drive caught testing on South Korean roads back in July.

“We are going to be a company beyond Tesla Motors in 10 years,” Chairman of Edison Motors Youngkwon Kang told The Korea Post in 2020.

“One of our strategies is focusing on the performance and design of the car that the consumers want.”

It’s understood Edison Motors and SsangYong will sign a memorandum of understanding this month, with the aim to settle the acquisition before the end of 2021 – a year after the Korean carmaker first filed documents to the Seoul Bankruptcy Court.