Loss-making SsangYong brand found a new owner

Loss-making SsangYong brand found a new owner

April 13, 2021 0 By autotimesnews

Last year, South Korean SsangYong filed a lawsuit after failing to pay 60 billion won, or 44.7 million euros. This was the last setback for the concern. To remedy the situation, the auto giant Mahindra began looking for an investor who would buy part of its stake.

SsangYong has quite a few problems, but this does not interfere with the interest of larger players in the car market. That being said, the unlikely candidate appears to be interned by acquiring a bankrupt manufacturer.

According to Automotive News, HAAH Automotive Holdings planned to acquire a stake in SsangYong. The process froze after the firm did not write a letter of intent. Details are unclear, but reports indicate that HAAH is going to invest $ 250 million.

The investor’s office told reporters that the parties continue to discuss a couple of business opportunities in the Asian car market. It is still too early to give more precise comments, since all discussions are strictly confidential. there is any text

HAAH’s interest in the bankrupt brand remains unclear. At the same time, the concern from Korea has been selling cars from the PRC in American car dealerships for many years. Three years ago, they announced their intention to sell Zoty in the United States. But this did not happen, since the parties did not agree on the benefits. Then HAAH that year announced its decision to sell a homologated Chery Exeed TXL under the Vantas name. A few months later, they announced the new T-GO brand. It may appear in the US at the end of next year and produce cars based on the Chery T1X architecture.

The investor did not say where these foreign cars will be produced, so Automotive News suggests that HAAH may be interested in buying SsangYong for this very purpose. There is another advantage, as the US and South Korea have a free trade agreement. This will allow HAAH to avoid high tariffs on cars imported from China. The company is reportedly considering the latter option for its “first batch” of vehicles.