Edison Motors makes offer to buy SsangYong

Edison Motors makes offer to buy SsangYong-motors

A consortium led by the South Korean electric truck manufacturer Edison Motors is apparently preparing to take over the badly hit off-road vehicle specialist SsangYong Motor. This is reported by “automobilwoche.de” citing various sources. As a purchase price, the equivalent of around 224 million euros is being discussed. Both sides have now officially signed a corresponding takeover agreement, according to a stock exchange release from SsangYong. According to the report, the responsible bankruptcy court has already approved the agreement.

According to the information, the contract will only take effect if the court also approves Edison Motors‘ restructuring plans. According to reports from various South Korean media, the statements must be made by April 1st. to be presented in March. The majority of SsangYong’s creditors have yet to approve the company’s 1954-founded debt-handling plans. Until then, SsangYong will remain under receivership. On March 21, the automaker announced. Filed for bankruptcy December 2020. According to the company, sales fell by 21 percent year-on-year to just under 84 in 2021.500 cars.

Seoul-based SsangYong Motor is the fourth largest automobile manufacturer in South Korea. In the 1990s, a technology partnership was agreed with Daimler-Benz, which in January 1993 led to a five percent stake in the Swabian carmaker. There were agreements on the development of vans, passenger cars and engines. Since 2011, SSangYong has been majority owned by the Indian commercial vehicle manufacturer Mahindra & Mahindra. According to “Automobilwoche.de”, the shareholders had tried in vain to sell their majority shares since 2020. Under the direction of Edison, in whose divisions electric buses and trucks are built, SsangYong wants to convert to an electric car manufacturer.

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