Ssangyong to reportedly be sold to EV startup Edison Motors
Ssangyong has been struggling these past few years. Its parent company Mahindra has tried to turn the Korean marque around following its acquisition in 2011, but it seems that hasn't gone to plan. In December 2020, the automaker filed for bankruptcy and is currently under court receivership. But it seems all hope is not lost for Ssangyong.
According to a report by Nikkei Asia, Ssangyong named fellow Korean automaker Edison Motors as its preferred bidder. The deal will supposedly be worth USD 260 million, according to the publication's sources. Ssangyong and Edison Motors are expected to finalize and ink a corporate agreement later this year.
Edison Motors is a relatively new company founded only in 2015. They specialize in building electric buses and are currently developing electric commercial trucks. Its interest in acquiring Ssangyong can be attributed to the company's plans to enter the passenger vehicle market and produce electric vehicles at Ssangyong's factory in Pyeongtaek.
Aside from entering the passenger car market, Edison Motors has plans to turn Ssangyong around in 3 to 5 years. To do so, Ssangyong will be transformed into an EV-focused automaker. They will also utilize its Pyeongtake factory to produce around 300,000 vehicles annually. At least that's what Edison Motors Chairman Kang Young-kwon said in an online press conference, according to the Korea Bizwire.
Assuming the acquisition pushes through, will Edison Motors be able to turn Ssangyong around? Whatever the case, Ssangyong isn't about to give up easily. The automaker recently revealed a design concept called the X200, which is said to preview the brand's next-generation SUVs. At the same time, the automaker announced plans to launch three new EVs to help save the company. Should everything go well, Ssangyong could be on the road to recovery in a few years.