A consortium around the South Korean electric truck manufacturer Edison Motors wants the ailing off-road vehicle specialist SsangYong Motor for 304.86 billion won (about 224 million euros). Both sides signed a corresponding takeover agreement, said SsanYong in a stock exchange release. An insolvency court approved the takeover.
According to the information, the contract will only take effect if the court also approves Edison’s restructuring plans. According to reports from the South Korean media, the plans must be in place by March 1. The majority of SsangYong’s creditors also have yet to approve the company’s debt settlement plans.
Until then, SsangYong will remain under receivership. Insolvency proceedings were initiated for the automaker last April.
Conversion to electric car manufacturer
SsangYong Motor is the fourth largest South Korean automobile manufacturer. Since 2011 it has been majority owned by the Indian commercial vehicle manufacturer Mahindra & Mahindra. The Indians had tried in vain to sell their majority since 2020. Edison, which manufactures e-trucks and e-buses, wants to convert SsangYong into an e-car manufacturer.
SsangYong’s sales fell by 21 percent year-on-year to just under 84,500 cars in 2021. (dpa / gem)
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