Edison Motors takes over Ssangyong

The "automobilwoche.de" reports, citing various sources, that Ssangyong is to go to Edison Motors. A purchase price of approximately 214 million euros was mentioned. In a stock exchange announcement from SsangYong, it was stated that both sides have now officially signed the corresponding takeover agreement. The responsible insolvency court is also said to have approved the agreement. However, the contract is only to become effective when the court also approves Edison Motors' restructuring plans. According to reports from various South Korean media, the declarations regarding this must be submitted by March 1.

Additionally, by then a majority of SsangYong's creditors must approve the debt settlement plans of the company, which was founded in 1954. Until then, SsangYong is to remain under receivership. The Korean SUV and off-road specialist filed for bankruptcy on December 21, 2020. According to SsangYong, sales in 2021 fell by 21 percent year-on-year to just under 84,500 cars. The company, founded in 1954, was majority acquired by Indian vehicle manufacturer Mahindra & Mahindra in 2011. However, in the following years there were only tentative collaborations between the Indians and the South Koreans, partly because the two markets differ greatly. According to "automobilwoche.de", the Indians had been unsuccessfully trying to sell their majority shares since 2020. Edison reportedly plans to transform SsangYong into an electric vehicle manufacturer.

Independently of this, Ssangyong also presented the all-electric Korando e-Motion in Germany. It is expected to enter the German market in the coming months starting at 38,990 euros (just under 32,770 euros net). Propulsion is provided by a 140 kW/190 hp electric motor that delivers a maximum torque of 360 Nm to the front wheels. According to the manufacturer, the 61.5 kWh battery of the Korando e-Motion allows for a range of up to 339 kilometers (WLTP). At CCS fast-charging stations, the high-voltage battery can reportedly be charged from 20 to 80 percent in 33 minutes.

What does this mean?

Apparently unfazed by the turbulence in India and South Korea, Ssangyong is simply moving forward in Germany—and that's a good thing. Although the news has cost the company customers in this country as well, they remain optimistic and are starting 2022 with their first electric vehicle at affordable prices with decent specifications. It will be interesting to see if the Edison deal goes through.