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Mahindra Owned SsangYong Motor Sold

SsangYong Motor To Be Led By Edison Motors

For Mahindra & Mahindra and SsangYong Motor, the battle is finally done. With the acquisition of the Korean SUV producer by a consortium led by Edison Motors, the company’s 10-year relationship with its Indian owner has come to an end. M&M had previously stated a number of years ago that it would limit its investments in SsangYong since the returns were so low. While the losses continued to mount, sales were mediocre at best. The only way out was to find a suitor and depart, which is exactly what Edison Motors has done now.

Mahindra’s Future Plans

Edison Motors To Buy Mahindra Owned SsangYong

M&M sees the future as focusing on its core capabilities of SUVs, which was, unfortunately, the reason it opted to end its relationship with Ford over two decades ago. It was at this point that it made the critical choice to focus on Project Scorpio rather than investing in a joint venture where it had little to offer in the automotive market. Scorpio, of course, was a tremendous success storey, and in the process, a more daring M&M developed, eager to expand its wings into the mobility area.

It entered a slew of new markets, including two-wheelers (by purchasing Kinetic’s company), trucks (through an association with Navistar of the United States), and a comeback in automobiles (by a joint venture with Renault to produce the Logan). SsangYong, on the other hand, was unique in that it represented an expansion of the company’s main business of SUVs, and the fact that it came after a worldwide purchase made it much more appealing. Tata Motors had done it before, with Daewoo Commercial Vehicles and a more opulent takeover of Jaguar Land Rover from Ford.

Strategy For SsangYong Motors

SsangYong gave a wonderful potential for the Indian firm to go worldwide, according to the leadership team, while there was still a lot of work to be done. A significant emphasis would be placed on topics such as strategy, long-term financial stability, and big HR efforts. Following the takeover, Mahindra set a goal of attracting more talent to SsangYong and “creating a lot of enthusiasm.” Prior to the acquisition, some important executives had left the Korean firm when it was going through a hard spell. M&M was sure, however, that future talents would not be in short supply in the market, and that attracting individuals back to SsangYong could be accomplished with the correct emphasis and direction. This self-assurance stemmed from the fact that there was “no basic damage” to the brand, or that it had become weak due to a host of factors.

More crucially, this was a two-way learning process in which the partners’ talents were complementary. Even while the script was going awry and losses were piling up with no remedy in sight, M&M and SsangYong were nevertheless directly involved in a slew of new ventures. The Covid-19 outbreak did little to help matters, and M&M announced in early 2020 that it would no longer be feasible to keep SsangYong. With the Ford divorce looming, the corporation had made it plain that it would now be concentrating on building a solid financial sheet, and that commercial developments might be postponed for the time being. South Korea’s SsangYong is finally sold for $255m to the a consortium led by South Korean electric carmaker Edison Motors Co.

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