Joined at the hip to General Motors, the South Koreans at Daewoo purchased the company in 1997 only to run into serious financial woes. SAIC entered the scene in 2004 with a 51-percent stake, and two years later, a massive strike cost SsangYong a simply ludicrous amount of money.
The company entered receivership in January 2009, which is why Mahinda & Mahindra swooped in with a takeover in February 2021. The Indian automaker paid $463.6 million for SsangYong, which is approximately $572.8 million after we adjust for inflation. Despite some well-needed cash that went into brand-new products, the South Koreans just could make things work. Because Mahindra had had enough, SsangYong was ultimately forced to file for receivership and bankruptcy back in December 2020.
Fast forward to October 2021, and that’s when South Korean business and automotive media reported that an electric bus and truck maker by the name of Edison Motors would purchase the debt-ridden SsangYong. Wholly unsurprising, the rumors turned out to be true. A consortium of investors led by Edison Motors has finally announced a $255 million takeover, which is a small price to pay for such a formidable back catalog and IP repository.
“SsangYong plans to do its best to achieve business normalization as soon as possible by submitting a rehabilitation plan, consenting to the assembly of stakeholders, and obtaining approval from the court as this contract has been concluded through a difficult process,” reads a statement from the Pyeongtaek-based automaker. As to what the future actually holds for SsangYong, here’s hope Edison will succeed in turning this ship around.