A consortium led by South Korean electric carmaker Edison Motors Co has agreed to acquire debt-ridden SsangYong Motor Co Ltd for 305 billion won ($254.65 million), SsangYong Motor said on Monday.
SsangYong has been under court receivership since April in an attempt to rehabilitate the carmaker after majority owner Mahindra and Mahindra failed to secure a buyer.
All about Performance
SsangYong is burdened with high debt and its vehicle sales last year fell to 84,496, down about 21% from a year earlier, a regulatory filing from the automaker showed.
The automaker reported a January-September 2021 operating loss of 238 billion won from revenue of 1.8 trillion won.
Between January and September of 2021, the auto company had an operating loss of 238 billion Won from revenue of 1.8 trillion Won.
Indian automaker Mahindra, which owned about 75% of SsangYong as at the end of September, has been looking for a buyer for all or most of its stake, which it bought when the South Korean automaker was near-bankruptcy in 2010.
About SsangYong Motor
SsangYong Motor traces its roots to Dong-A Motor in the 1950s before it was taken over by SsangYong Business Group in 1988.
It would then be taken over by Daewoo Motors and SAIC, before eventually finding Mahindra and Mahindra with the controlling stake.
SsangYong Tivoli was the first car off the blocks once the Indian company took control but while there were plans to go big on SUVs and even consider a deep dive into electric vehicles, not much confidence was evoked due to plunging sales numbers.
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