F&I Management & Training

Mahindra & Mahindra, the Indian carmaker, has acquired a 70 per cent stake in SsangYong for and has announced plans to build a global SUV company.

The deal, valued at $463m, is expected to bring to an end a period of uncertainty for the Korean 4X4 manufacturer, which had been placed into administration by a Korea court earlier this year. The purchase is expected to be completed in March 2011.

“This is great news for our customers, dealers and staff here in the UK. It secures a firm footing from which to move forwards,” said Paul Williams (pictured), UK managing director of importer Koelliker.

“We can look forward to a successful new era for the SsangYong brand.”

UK sales for the brand have slumped by 68 per cent to just 230 units, although it has high hopes for its forthcoming all-new Korrando C sector crossover.

“The Korando was extremely well received when presented to international motoring journalists in September. The first shipment is due here in the New Year, and will be competitively priced to compete against cars such as the Hyundai ix35, Kia Sportage and Nissan Qashqai.

“The new car is also attracting much interest in the motor trade. We are on the point of appointing five new dealers, and interest in the franchise has never been stronger.”

“The coming together of Mahindra and SsangYong will result in a competitive global SUV player. Together with its financial capability, Mahindra offers competence in sourcing and marketing strategy while SsangYong has strong capabilities in technology. We are committed to leverage the combined synergies by investing in a new SsangYong product portfolio to gain momentum in global markets,” said Dr Pawan Goenka, president, automotive & farm equipment sectors, M&M.

DATED: 25.11.10

FEED: MT