Struggling Korean automaker Ssangyong has returned to sales in January after a sale deal with a consortium led by fellow Korean automaker Edison Motors broke.
The consortium agreed to pay s 255 million for SsangYong, which has been under bankruptcy protection since 2020, but failed to meet a March 25 payment deadline.
In a statement issued earlier this month, Ssangyong said it was looking for a new buyer and would prepare a new conversion plan for court approval. Potential buyers will be able to bid on SsangYong later this month, and SsangYong has already nominated Korean chemical giant KG Consortium as its preferred buyer.
Teaser for Ssangyong Terrace in June 2022
According to SsangYong, its financial position has improved since entering bankruptcy protection for the first time, due to an increase in orders from the export market as well as an agreement with the Saudi National Automotive Manufacturing Company to build a plant for complete knock-down production in Saudi Arabia. The plant, which will be Saudi Arabia’s first automotive plant, is expected to be operational by 2023. It will primarily combine SsangYong’s Musso pickup trucks and Rexton SUVs for both local sales and exports.
SsangYong also has one month left to launch the Torres, a rough, electric SUV formerly known by its code name J100. Torres, whose name comes from Torres del Paine National Park in Patagonia, will be sold worldwide but not in the United States because SsangYong does not operate here.
SsangYong is currently owned by Mahindra of India which has a 75% stake. Mahindra bought Ssangyong in 2011 but struggled to make it a viable business. Mahindra eventually refrained from further investing in SsangYong as it sought to save cash in the face of its own declining sales, including canceling a planned $ 406 million investment in 2019. After canceling that investment, Mahindra started looking for a buyer.