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Mahindra-owned SsangYong Motor sold for $255 million

South Korea’s SsangYong Motor could have new house owners as soon as once more after the company confirmed on Monday that it had been acquired by a neighborhood consortium for 305 billion Won or roughly $254.56 million. SsangYong Motor had been below court docket receivership for a number of months after majority proprietor Mahindra had did not discover a new purchaser.

SsangYong Motor has had a moderately torrid previous with quite a few cases of discovering itself in losses. Mahindra and Mahindra had acquired a controlling stake within the South Korean company again in 2010 and there have been hopes that constructing on the SUV physique kind would assist it revive its fortunes. It wasn’t meant to be because the company turned extra of a legal responsibility than a chance for the Indian auto main.

In April of 2020, Mahindra opted to cease pumping in additional money and started wanting for a purchaser, with out success. By the top of 2020, SsangYong Motor filed for chapter with an impressive mortgage of 100 billion Won.

Recent year have been robust going for SsangYong Motor and the Covid-19 pandemic has dealt a crippling blow. Reuters cited a regulatory submitting from the automaker to report that car gross sales had crashed to just a bit over 84,000 in 2021, a drop of 21% from the earlier year. Between January and September of 2021, the auto company had an working lack of 238 billion Won from income of 1.8 trillion Won.

SsangYong Motor traces its roots to Dong-A Motor within the Fifties earlier than it was taken over by SsangYong Business Group in 1988. It would then be taken over by Daewoo Motors and SAIC, earlier than ultimately discovering Mahindra and Mahindra with the controlling stake. SsangYong Tivoli was the primary automobile off the blocks as soon as the Indian company took management however whereas there have been plans to go huge on SUVs and even contemplate a deep dive into electrical autos, not a lot confidence was evoked resulting from plunging gross sales numbers.

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