Currently reading: Report: struggling Ssangyong to be taken over for £170m
Korean manufacturer set to be acquired by a commercial EV start-up
2 mins read
21 October 2021

Troubled Korean SUV manufacturer Ssangyong is set to be acquired by Edison Motors, a relatively young commercial vehicle firm, for the equivalent of just £170 million. 

The widely reported acquisition comes after a long period of financial trouble for Ssangyong. Majority shareholder Mahindra & Mahindra has been seeking to sell its 75% stake since June 2020, having cancelled all further investment in April.

The Indian manufacturing giant saved Ssangyong from bankruptcy in 2011, but slow global sales have limited the return on its investment. In December 2020, Ssangyong filed for bankruptcy, reportedly owing some 315 billion won (£194m) to its creditor, and was ordered to restructure itself by a bankruptcy court.

Now, six-year-old EV start-up Edison Motors is primed to take control of Ssangyong for 280bn won (£170m), according to reports from Asia. The move would provide Edison with a passenger car portfolio in addition to its current range of electric buses and trucks.

Edison was initially one of a number of interested parties and substantially outbid by an offer of 500bn won (£307m) from rival firm EL B&T. But with all other bidders now out of the race, Edison has become the preferred buyer.

Despite its financial troubles and declining sales in recent years, Ssangyong has been clear about its future product strategy. An electric version of the Korando crossover is due to arrive imminently, followed by a larger and more ruggedly styled SUV called the J100, which will serve as a rival to the Dacia Bigster.

Ssangyong is the fourth largest manufacturer in Korea, after Kia, Hyundai and GM Korea. Edison CEO Kang Young-kwon told The Korea Herald that, if successful, his company will invest between 800bn and one trillion won in Ssangyong's revival, with a view to turning it into a viable rival to Tesla, Volkswagen and GM.

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FastRenaultFan 22 October 2021
I wish Edison Motors and Ssangyong all the best in the future. I think Ssangyong have a great range if cars now it's a pity they are not more popular. If people can like the current Hyundais and Kias then why not Ssangyong. Ssangyong are around as long if not longer than the other two makes. They deserve todo well.
ianp55 22 October 2021

Pleased to hear that Ssongyong has survived as it moves with it's fourth owner in 25 years,I thought that Mahindra did a good job in their 12 years of ownership of the company,improving the range of vehicles  that are keenly priced and of excellent quality. I hope that the new owner Edison Motors continues to support and nurture Ssangyong and the company enjoys the success that it deserves