KG Group takes over SsangYong, will focus on EVs to return to profit

It’s been a rough ride for SsangYong over the last couple of years. The company ran out of funds all the way back in 2020 when its then-backer Mahindra & Mahindra stopped investing money into the company and focused on searching for a buyer.

On December 22, 2020, the company was granted insolvency protection over unpaid loans of $54 million. The company was given 3 months to restructure and reach an agreement with its investors, the Indian automotive giant Mahindra & Mahindra. M&M owned 75% of SsangYong and in April 2020 canceled the promised $406 million investment into the company and started looking for a buyer instead and as a result forced SsangYong into insolvency.

The company managed to secure a bridging loan to buy enough time to find a buyer and began negotiations with Edison Motors. The deal never came to pass, but thankfully KG Group stepped in and the deal to purchase 58.85% of the company was closed at $253 million.

With new management in place, all loans repaid and insolvency protection lifted, the company announced it is going to focus now on transition to an all-electric vehicle portfolio. The newly launched Torres SUV is at the moment available with a gas-powered engine in Korea, but in Europe it was launched as an electric-only option.

The lights are back on at SsangYong and it will be full steam ahead - Torres will become available in more markets with electric drivetrain and the company announced it is planning to open the new factory in Saudi Arabia.

The new owner, KG Group, is a Korean conglomerate specializing in steel production and chemicals. Let's hope a local company does a better job at managing SsangYong - Torres looks like a capable 4x4 and it would be a shame if it never made it to customers.

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