SsangYong’s economic situation was unsustainable. The South Korean manufacturer had been dragging a whole series of problems that could only end in one point. The sale of the company to avoid disappearance. New information from far away Asia indicates that SsangYong will be sold to Edison Motors, a South Korean company specializing in electric mobility.
It’s been a long time since Ssangyong it is in a difficult situation and, practically, in a cul-de-sac. From the moment that Mahindra, current owner of the South Korean brand, decided to stop injecting capital so that SsangYong could continue operating, it was clear what the most immediate future of the well-known car brand would be. Be sold to avoid disappearance.
Mahindra has chosen to drop ballast and focus on consolidating its position in its local market (India) as a step prior to starting a new global expansion process. SsangYong is not part of this roadmap and has therefore been set aside. Initially, it was decided to find new forms of financing to avoid the sale of the firm. However, it did not come to fruition and potential buyers burst onto the scene.
Edison Motors will acquire the SsangYong brand
From distant and exotic Asia, new and very important information has emerged that allows us to clarify the keys about the future that the company faces. The middle Nikkei ensures that SsangYong to be sold to Edison Motors. The South Korean automaker is hemmed in by debt and there is no other possible solution.
Of all those interested in becoming SsangYong the consortium led by Edison Motors has been chosen as the preferred option. According to sources consulted by the media that has made this information public, it is estimated that the agreement has a value of approximately 260 million dollars. In addition, it should be noted that there is a South Korean investment fund in this consortium.
It is also important to remember that SsangYong is under receivership and therefore requires proper approval for the sale to occur. If all goes according to plan, the final agreement will be initialed and announced at the end of next November.
Edison Motors, a manufacturer of 100% electric vehicles
Founded in 2015, the company Edison Motors is specialized in the manufacture of electric buses and is developing new commercial vehicles. With the acquisition of the SsangYong brand, you will be able to enter the passenger car market. In addition, it aims to manufacture electric passenger cars in a production center located in Pyeongtaek, a city in the north of South Korea.
At this point we must also underline that SsangYong has started its transition process towards electric mobility. The new SsangYong Korando e-Motion, its first 100% electric SUV, will begin its assault on dealerships very soon. It is the first of a long list of electrified vehicles that will see the light in the short term with the insignia of the South Korean firm.