Edison Motors fails to come up with funds before ownership deadline
The two parties have already signed a KRW 304.8 billion (PHP 13.1 billion) deal back in January, and Edison Motors already gave 10% of the acquisition money as an upfront payment. However, the EV startup company was unable to come up with the remaining 90% of the deal worth KRW 274.3 billion (PHP 11.75 billion) before the March 25 deadline.
As a result, the terms of the contract have been breached, and Ssangyong remains in court receivership after their majority stakeholder, Mahindra & Mahindra, failed to secure a buyer.
According to Automotive News Europe, the company sold 84,496 vehicles last year, which is 21% lower than in 2020.
Despite trying times for Ssangyong, the company is still looking to turn things around with their new EV concepts. They recently introduced the new Korando SUV, the facelifted Tivoli, and the Korando e-Motion EV. Furthermore, Ssangyong was also set to launch the J100 and X200 SUVs this year.
This shows the company could have been on the road to recovery after the Edison Motors takeover. But with that deal failing to materialize, Ssangyong will have to find a new buyer at the soonest possible time if they were to have any chance of survival.