Home Electric Cars Edison Motors could save SsangYong Motor from bankruptcy

Edison Motors could save SsangYong Motor from bankruptcy

Cash-strapped SsangYong Motor might have lastly discovered its escape and secured its future. The business has actually chosen homegrown electrical bus maker Edison Motors as its favored bidder. According to a post on Autospy, experts approximate the acquisition’s worth at KRW 1 trillion (EUR 730 million).

Established in 2015, Edison Motors is a really little business, however it has actually formed a consortium with Korea Corporate Governance Improvement, Keystone Private Equity, and Semisysco to get SsangYong Motor. Together with its sale lead supervisor EY Hanyoung Korea, SsangYong Motor chose this consortium as its favored bidder, not simply Edison Motors. The South Korean car manufacturer will make an application for consent from the court for more procedures.

SsangYong Motor and EY Hanyoung will sign an MoU with Edison Motors prior to completion of this month after court approval, according to a report from BusinessKorea Due diligence, arranged for 2 weeks from early November 2021, and settlements concerning the acquisition cost and primary agreement terms, will choose the last fate of the proposed acquisition.

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If Edison Motors does wind up purchasing SsangYong, it would accelerate the business’s electrification. Mentioning Dang Young-kwon, the business’s creator and CEO, a report from The Korea Herald states that the business intends to increase SsangYong Motor’s production volume 3 times to 300,000 automobiles and make it a successful business within 3 to 5 years. It desires xEVs to represent two-thirds of the production volume: 150,000 pure EVs and 50,000 hybrid EVs.

SsangYong Motor presented its very first EV, called SsangYong Korando e-Motion, in July2021 The business is late in electrification compared to its competitors, and its very first design is not a strong competitor either. The Korando e-Motion is a conversion of the ICE Korando, while Hyundai, Kia, Volkswagen, and other rivals have actually normalised conversion EVs and started releasing bespoke EVs now. With this in mind, the business has actually likewise prepared to establish 5 electrical automobiles within 4 years.

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SsangYong strategies 5 brand-new electrical lorries

According to an ETnews report on 30 August 2021, Yong-won, legal supervisor of SsangYong Motor, had conversations with agents of huge parts providers detailing the mid-to-long-term strategies of EV advancement. This conversation occurred on 24 August 2021.

SsangYong is presently in the procedure of introducing the Korando e-Motion in Europe this month. According to the report, the Pyeongtaek plant is obsoleted, and the business has actually negotiated with the city to offer the website and buy a brand-new website committed to environment-friendly cars production.

Featured Image: SsangYong Korando eMotion/Ssangyong