A consortium around Edison Motors is expected to take over the car manufacturer SsangYong, which is under receivership. The Seoul bankruptcy court is expected to decide on the acquisition shortly. However, approval is very likely. According to the partners, the deal should be completed by the end of November.
SsangYong has been under receivership since December 2020, a final step by the South Korean legal system before bankruptcy. As early as 2009, the fourth largest South Korean car manufacturer had to apply for bankruptcy protection. A takeover of the Indian Mahindra & Mahindra Limited was able to avert the end at the time. The current agreement with Edison Motors could mean renewed salvation.
Ssangyong has so far focused on the production of combustion SUVs and sells its products from Cologne in Germany. In recent years, the company has announced several electric vehicles. An electric version of the Korando is expected to be launched in 2021.
For Edison Motors, the acquisition could open the door to the passenger car segment. So far, the company has only produced electric trucks and buses. At a press conference, CEO Kang Young-Kwon reiterated plans to transform SsangYong into an electric car maker in three to five years. To this end, Edison Motors plans to sell its current plant in Pyeongtaek and build a new EV-focused plant in the same city. In the future, the automobile manufacturer would like to produce up to half a million vehicles here every year. These production targets would not allow Edison Motors to lay off employees. For the acquisition and reorganization of the company, Edison Motors wants a total of 1.5 trillion WON (CA. 1.1 billion euros) Applied by investors.
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