√SsangYong rescued: Corporate name to change as new owners take the helm

KG Group has emerged as SsangYong’s saviours, as the company looks to close a dark chapter in its history.

SsangYong’s troubled times could be behind it, with a court in South Korea approving the sale of the carmaker to South Korean chemical and steel company KG Group late last week.

According to Korean news outlet Daum, the manufacturer will change its name to KG SsangYong Mobility from 1 September 2022 to mark the new ownership arrangement.

KG Group Chairman Kwak Jae-sun will also take over as chairman of SsangYong at the same time, as the company begins its period of rehabilitation – with a plan approved by the courts, and with the support of more than 95 per cent of its creditors.

Indian carmaker Mahindra came to the rescue of SsangYong in 2010, but struggled to turn the brand’s troubles around, with SsangYong eventually declaring bankruptcy in December 2020 after reporting 315.3 billion won ($AU386 million at the time) in overdue debt.

After a year of turmoil, Edison Motors – an electric bus and truck manufacturer from South Korea – emerged as Mahindra’s proposed new owners at the start of 2022, but the deal ultimately fell through by March. Not before SsangYong had walked away with the $US25 million ($AU33.2 million) deposit.

By June 2022, SsangYong’s UK arm had announced it had returned to profitability for the first time in seven years – less than two weeks later, SsangYong UK Executive Chairman Jim Tyrrell passed away suddenly from a suspected heart attack.

At the same time, clothing manufacturer Ssangbangwool was understood to have placed a bid for SsangYong, before KG Group was ultimately victorious.

While exact figures aren’t known at this stage, local media reported KG’s bid being three times the offer originally made by Edison Motors in late 2021.

Meanwhile, SsangYong has been busy developing its new Torres and KR10, with the company’s transition to a range of electric models understood to be a large part of its rehabilitation plan.

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