SsangYong Ownership

Ownership history of SsangYong, who now owns SsangYong? And how did they acquire the struggling South Korean car maker?

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Image taken from, (Mahindra to launch SsangYong Rexton in seven more cities on November 20http://www.motoroids.com/news/mahindra-to-launch-ssangyong-rexton-in-seven-more-cities-on-november-20/, illus)

Ever since its establishment in 1954, SsangYong has been a company with a vast history of Partnerships and ownerships with companies resulting in numerous name changes like no other automotive brand!

Firstly, just to set the tone, SsangYong began life as the single company, Ha Dong – Hwan Motor Workshop. This company then merged with the Dongbang Motor Co. 9 years later to be known as, Ha Dong – Hwan Motor Co. Over the years later and many name changes later it wasn’t until 1988 that the company that globally recognised became, SsangYong.

It wasn’t until 1998 did the brand become majority owned by a major global company. This company was known as, The Daewoo Group, the major South Korean conglomerate. Ownership didn’t last long and in 2000 the company disbanded from SsangYong.

2004 saw yet another huge ownership deal take place as the rising Chinese Shanghai Automotive Industry Corporation (SAIC) bought out the controlling stakes of the company.

However, after an unsuccessful relationship with the SAIC, the company was put into receivership due to the Global Economic Crisis in 2009.

Finally, it wasn’t until February 2011 was the company’s 70% controlling stake bought outright by the major Indian conglomerate, Mahindra & Mahindra Limited for the low, low sum of $463.6 million. [1]

Mahindra & Mahindra Limited acquired the controlling stake of SsangYong after it was chosen as the ‘preferred bidder’ by Korean courts against other major companies who were also in the running for acquisition such as, Kolkata based PK Ruia Group and local Korean entities. [2]

It is believed that the major reason that Mahindra & Mahindra Limited acquired the company was itself being a major company within the SUV market in India wanted to use the established technology and global networking of the SsangYong brand to ‘expand sales outside its home market.’ [3]

Mahindra & Mahindra Limited have turned the fortunes of the struggling brand around and developed it into a worldwide SUV competitor with amazing looking concepts ready to be released in the near future.

 

By Parvinder Perry Singh

 

References

[1]: The Wall Street Journal, Mahindra reportedly inks deal to buy SsangYong for $463Mhttp://www.autoblog.com/2010/11/23/mahindra-reportedly-inks-deal-to-buy-ssangyong-for-463m/, Nov 2010

[2]: Nandini Sen GuptaM&M seals $470m SsangYong dealhttp://timesofindia.indiatimes.com/business/india-business/MM-seals-470m-Ssangyong-deal/articleshow/7505113.cms, Feb 2011

[3]: Sookyung Seo, Mahindra May Complete Acquiring SsangYong Controlling Stake in Early 2011http://www.bloomberg.com/news/2010-10-13/mahindra-may-complete-acquiring-ssangyong-controlling-stake-in-early-2011.html, OCT 2010

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