KG Group has become the saviors of SsangYong as the company looks to close a dark chapter in its history.
SsangYong hard times may be behind us, with a court in South Korea approving the sale of the automaker to South Korean steel and chemical company KG Group late last week.
According to the Korean media Daumthe manufacturer will change its name to KG SsangYong Mobility as of September 1, 2022 to mark the new ownership agreement.
KG Group chairman Kwak Jae-sun will also take over as chairman of SsangYong at the same time, when the company begins its rehabilitation period, with a plan approved by the courts and supported by more than 95 percent of its creditors. . .
Indian automaker Mahindra came to SsangYong’s rescue in 2010 but struggled to fix the brand’s problems, with SsangYong eventually filing for bankruptcy in December 2020 after reporting 315.3 billion won ($386 million). Australians at the time) in overdue debt.
After a year of confusion, Edison Motors, a South Korean electric truck and bus maker, emerged as Mahindra’s proposed new owners in early 2022, but the deal ultimately fell through in March. Not before SsangYong walked away with the $25 million ($33.2 million Australian) deposit.
By June 2022, SsangYong’s UK division had announced that it had returned to profitability for the first time in seven years; less than two weeks later, SsangYong UK chief executive Jim Tyrrell passed away suddenly of a suspected heart attack.
At the same time, clothing maker Ssangbangwool was understood to have made a bid for SsangYong, before KG Group ultimately emerged victorious.
While the exact figures are not known at this stage, local media have reported that KG’s offer is three times higher than the offer originally made by Edison Motors at the end of 2021.
Meanwhile, SsangYong has been busy developing its new Torres and KR10, and it is understood that the company’s transition to a range of electric models is a big part of its rehabilitation plan.