Mahindra completes Ssangyong deal as scheduled

Posted in Cars, India, International News, Mahindra, SsangYong / By /

Mahindra completes Ssangyong deal as scheduled

As scheduled, Mahindra & Mahindra has completed its acquisition of a majority stake in SsangYong Motor Company, and now owns a 70% share in the Korean automaker.

The deal, which has seen Mahindra forking out US$463 million for the purchase, will see Ssangyong investing heavily this coming year on product development and brand building, now that cash is flowing in. Around 240 billion (US$211.8 million) Korean Won has been projected for expenditure, with 200 billion set for product development and 40 billion for brand builidng.

Mahindra says that no decision has been taken yet on whether there would be any changes involving renaming Ssangyong or with the branding of its products. Plans to launch the Rexton and Korando-C in India have already begun – the two vehicles are expected be introduced there by the end of this year.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • alldisc on Mar 16, 2011 at 1:07 pm

    indian conglomerate owns korean auto make? what next??

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  • nabill on Mar 16, 2011 at 1:29 pm

    more like nobody buy nobody !

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  • jjg on Mar 16, 2011 at 2:46 pm

    I wonder if Mahindra’s purchase of SSangyong will boost Mahindra’s sales in Malaysia, e.g. the Mighty Scorpio. (So far only manage to see one latest Scorpio on the road at Jln Ipoh yesterday around 4:15pm, with a Thule box on top and with T plate (Terengganu)).

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  • TuLan Nissan on Mar 16, 2011 at 3:07 pm

    Now, everyone is eyeing China. But how can we ignore India? 20 years later, the 2 biggest economy in the world would be China and India.

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  • SoMeOnE on Mar 16, 2011 at 11:02 pm

    hmm this is a risky buy….the chinese ran out of ideas on which direction the brand should go…and they failed really badly….lets see what the indians can do….but it is very very risky….

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    • Mohan Nair on Mar 17, 2011 at 1:39 am

      No pun intended but it was just the Chinese could not do integrate the company. Also Chinese companies from mainland China have little or no management skills with the scale and kind of acquisition.

      Mahindra’s like many Indian conglomerate run many overseas subsidiaries sucessfully.

      Tata took over Daewoo trucks and have sucessfully integrated into the Tata group, which has provided lots of input into the new Prima range of world trucks from Tata.

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  • Daniel on Jun 21, 2012 at 4:52 pm

    I’m not worried if Indian company bought the Ssangyong…Indian companies have many skill full engineers…Indians even build their own Fighter Jets…our Modenas still do re-badging after so many years. Wth?

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