Ssangyong
BREAKING – Mahindra to purchase 70% of Ssangyong for US$378 million
A report by Autonews has indicated that Mahindra & Mahindra Ltd. is set to purchase a 70% stake in the troubled Ssangyong Motor Co., which would give the Indian giant a controlling stake. The report stated that the 70% stake is valued at US$378 million which is about 427.1 billion won. Ssangyong which went into court receivership early last year was formerly owned by China’s SAIC.
The stake purchase would need approval from Ssangyong’s creditors and Mahindra also revealed its intention of purchasing US$84 million (95.4 billion won ) worth of new bonds from Ssangyong. This news comes after Mahindra was named preferred bidder of the Korean auto company in August. The report also stated that Mahindra aims to complete the acquisition by March 2011.
A report by The Hindustan Times stated that both companies have officially signed a deal on the acquisition. Pictured above is the Italdesign Giugiaro-designed Ssangyong Korando which has been approved for production.
Ssangyong’s potential buyers down to six
It was previously reported that struggling auto maker Ssangyong is looking for a new owner and the company has already shortlisted six bidders although the it did not reveal who these six are and who have been disqualified.
We do know that companies like Renault-Nissan and Mahindra have expressed interest in the company. Other companies that have been linked with the purchase of Ssangyong include India’s Ruia Group as well as Korean’s SM Group, Seoul Invest and YoungAn Hat.
Renault-Nissan is expected to be a front runner in the bid especially since it has an established Korean entity, Renault-Samsung. This Korean unit will also heavily benefit from the potential takeover. The six companies are expected to submit binding bids by July 20th.
Ssangyong was previously owned by China’s SAIC when it bought a controlling stake worth US$500 million in 2004. However SAIC reduced its stake to only 6.2% as Ssangyong recorded losses and the company has been under court protection since early 2009. Analysts expect Ssangyong to fetch about US$50 million.
Nissan places bid to acquire Ssangyong
It was revealed recently that Nissan has placed a bid to acquire Korean auto maker Ssangyong which entered bankruptcy protection in February 2009. Nissan is leading Renault, the company that holds the biggest share in the Japanase brand into the potential acquisition. Apparently up to seven parties have expressed interest in Ssangyong and one would need to fork out 700 billion won or US$572 million to purchase a controlling stake in the company.
Companies that are part of the seven include India’s Mahindra & Mahindra Ltd, Ruia Group who are owners of Dunlop India and Korean aluminium manufacturer SM Group. Having Ssangyong in Renault-Nissan’s umbrella would help Renault’s Korean unit Renault Samsung Motors achieve more capacity in the country while Nissan can begin manufacturing its cars there.
Ssangyong will short list the bidders for an auction by June 4th and the candidates are expected to submit binding bids by July 20th. More will be revealed soon, stay tuned!
Is this Ssangyong’s latest production vehicle – the Korando C?
Remember Ssangyong? The Korean auto maker that went into serious financial turmoil? Well looks like it has just unveiled a new production vehicle at the 2010 Busan Motor Show called the Korando C. This compact SUV which is based on the C200 Concept sits on a brand new platform with a wheelbase of 2.65 meters. This is slightly smaller than the BMW X1.
Under the hood lies a 2.0 liter force-inducted diesel engine that is paired with a 6-speed automatic transmission. The engine cranks out 181hp and 360Nm of torque and apparently meets Euro 5 emission standards.
This all wheel drive Ssangyong features things like smart entry and a foldable second row along with safety features such as active headrests, curtain airbags and ESP. Unfortunately we have yet to receive an official press release from Ssangyong and this report is purely based on articles published by various Korean and Dutch publications. We will try to get an official word soon!
Meanwhile continue reading to view two more images of the Korando C.
Source. Read the rest of this entry.
Two versions of Ssang Yong C200 displayed at Seoul
The Ssang Yong C200 has been displayed in two options as seen in pictures below. As mentioned in our previous article the Aero is lighter and comes with an option of 2.0 diesel engine or a turbocharged 1.8-litre engine.
The C200 Eco version features a diesel hybrid power and promises better fuel economy with CO2 emissions down by 50%.
Enjoy the pictures below. Read the rest of this entry.
Ssangyong wants a slice of the market
Ssangyong will be unveiling C200 cross utility vehicle at the Seoul Motor Show. Ssangyong say that the close-to production ready C200 will be similar to the Toyota Rav 4, Nissan Qashqai, and Honda CRV in concept, but only difference is that stylings from Giugiaro’s ItalDesign will be featured on the Crossover, whose other works include the Frazer-Nash and the Maserati Quattroporte.
Apart from that it will have a platform that is adaptable to be used as a front or four wheel drive vehicle which will be powered by an all new 2.0-litre 175bhp engine, which SsangYong say has increased fuel and emissions efficiency.
Along with that, ride quality has been greatly increased by reduced noise and vibrations, while weight saving aluminium suspension and a lower centre of gravity provides handling that will please the European market.
Ssangyong has also been very busy with its Kyron Diesel-Hybrid which will be one of the first few engines, (let alone vehicles) in its class. As you would expect, a diesel engine already produces less CO2 and provides better fuel efficiency than a petrol engine but add an electric engine to the mix and you get reduced exhaust emissions by 50% and fuel efficiency of 25 %.
An electric motor with a high voltage battery is used with a direct injection diesel engine that is funneled through a Torque Split Device which controls the use of the electric motor and achieves hybrid functionality. Expect start-stop technology and regenerative braking to be used on the Kyron.
The Seoul Central District Court reprieves Ssangyong!
As mentioned earlier, that the Seoul Central District Court will make an announcement some time this month regarding the future of Ssangyong ever since the Korean auto maker filled for a court receivership; reports have surfaced now that a decision has been made by the court, in favor of the struggling auto maker.
The Seoul Central District Court has effectively reprieved Ssangyong by appointing the company’s Executive Director Park Young-tae and former Hyundai Motor President Lee Yoo-il as court-appointed managers to come up with a plan which will help revive the auto maker and submit it to the court for approval. Both top executives may take as long as 6 months to come up with such a plan. The court has also temporarily suspended external financial aid to the company until the plan is approved.
This is good news for the auto maker since the court has ruled out liquidating the company, however industry experts have revealed that revival is not guaranteed for the company, since the plan which is expected to be submitted has to be a solid one. So for now, Ssangyong lives on!
