[shobhit.shri]

Originally Posted by GTO

100% with you there. Mahindra wants to do "everything", but ends up doing "nothing" well.

What Mahindra really needs is razor-sharp focus!

In contrast, Bajaj seems to have mastered this art thoroughly. Rarely gets into short term partnerships and distracting business lines. The difference shows in the stock returns.

[1.2TSI7DSG]

I was working with them when they were shopping around. The inside view, 10 years ago, was that there was nothing apart from UVs. Except for Scorpio & Bolero, there was absolutely nothing. Then came XUV and its success actually propelled it to think bigger. Ssangyong was supposed to put them in the US market after the failed W408 project. With a lot of risk on UVs with respect to long term viability, the diversification in their segments was necessary for their survival.

What went wrong (IMHO) is that their picks in each segment. Kinetic assets were horrible. Ssangyong did have a good run for a short period but then no changes in ride and handling and other stuff was a letdown. Reva was way ahead of time and should start pivoting in the Electric economy. PF & Jawa look to be the best partnerships so far. With their MNATC functional, I believe we should see a much-focussed approach to using the synergies of each individual assets.

The key which we always felt missing was the "giving everything you have" approach. Kinetic came in, we kept on selling rebranded products. It wasn't up till the MOJO that got peoples attention that M&M can make bikes (oddball or not). Sedans were a still an issue and continuing with the 2 decades old Logan couldn't find takers apart from Taxi guys. They had everything, except the will to do it. After the success of XUV300 (based on the Tivoli), I would still like them to give the partnership one last push for the revival. If not, with PF & Jawa (their latest acquisition/mergers/partnerships) I really hope they give everything they have.

[sunnsood]

Originally Posted by shobhit.shri

In contrast, Bajaj seems to have mastered this art thoroughly. Rarely gets into short term partnerships and distracting business lines. The difference shows in the stock returns.

In a recent interview Rahul Bajaj said this:

"Just to illustrate; let me give you these examples; how absurd does a Volvo salt sound to you? Quite absurd but Tata Salt sounds fine. How absurd does Jeep Holiday resort sound to you? But Mahindra Holiday Resort sounds fine. How absurd is BMW Juicer, mixer, grinder sound to you? Pretty absurd but a Bajaj Juicer, mixer, grinder sounds fine."

That's the same issue with Mahindra. Jack of all trades master of none.

[shreevishnu]

Legacy Mahindra products are based on the old Jeep platforms, with significant changes to meet updated market needs. (Current Thar, Bolero, Bolero-Pikup)

True blue indigenous Mahindra product design efforts have been abominations in the minimum, e.g., Xylo, Quanto, Genio, Nuvosport, KUV 100, TUV 300 & XL, etc. The XUV 500 is the only "good" product made in-house, after the Scorpio (& its pick-up avatar).
Given this history of success in-house, partnering with Ssangyong seemed obvious at that time. (No matter the costs, Mahindra's in-house efforts were of limited market acceptance)

Todays' Mahindra - Research Valley, North American Centre - is a far cry from 10 years ago, Marazzo is proof. Ssyangyong equity investment is a superb stop gap solution to product pipeline, along with time to develop/mature a competent PD organisation.
Hell, Ford wanting to base new products on Mahindra platforms & co-develop is a seal of approval. Tech from Ford is "free" - need only to localize, compared to the need to actually develop solutions for Ssangyong & then spread the costs on entire range (Mahindra & Ssangyong).

The go-global line was more for the markets than anything else.
Going global with the Mahindra brand would've been easier that with Ssangyong. Ssangyong has a history of labour unrest domestically in Korea, & legacy of bad products elsewhere (Rodius anyone?)

The pandemic is a good way to stop putting more good money after the use is done.

[Reinhard]

Sad turn of events - especially from the point of view of Ssangyong and its employees. The statement by Mr. Goenka pretty much puts the brand on the block & tone is as if M&M is happy to just let it sink in case there is no partner found in their stipulated time window.

The problem with Ssangyong as a brand is - hardly anybody knows it. In the current disastrous slowdown for the auto industry, who'd want to bet on buying a brand that needs a lot of money to stay afloat & guarantees literally nothing in return even in medium term considering the amount of ground already lost. Tata might find a buyer easier for JLR but selling Ssangyong will be a challenge. I won't be surprised if M&M & other owners end up selling the brand's real estate & assets in the end. There couldn't be a worse time for brands like this one. Biggies like Renault group are staring down the barrels for finances right now.

Whats ironic is - M&M's XUV300 - the chopped Tivoli - is literally ruling the sales charts in the sub4m segment, when this news breaks.

[for_cars1]

Originally Posted by The Rationalist

Was the investment worth the technology transfer, that too from Ssangyong? I don’t know what kind of technology would be such an investment!

Originally Posted by padmrajravi

.. When you already know how to make a capable car like XUV and make it a big success, why do you need technology transfer

Just look at the drastic transformation in the way XUV300 and Marazzo have been put together. These are far better built than their competitors in their respective categories in India (irrespective of the sales numbers).

The XUV500 although modern by Mahindra standards is nowhere close in comparison to these Ssangyoung technology derived XUV300 and Marazzo. The very build of these vehicles are a giant leap in technology for Mahindra and catapults them to International levels and is very much worth the investment.

Its similar to how Tata's vehicle build standards have seen a quantum change after learning the technology know-how from Jaguar-Land Rover.

Both these Indian manufacturers are now hitting the 4 and 5 star safety levels quite comfortably in all their new offerings. No points for guessing where the technology came from on an easy platter (ofcourse they invested heavily and did not come free)

[akash_v12]

What may be about to happen was bound to happen as soon as SsangYong step foot into Mahindra and the Indian Market. When Mahindra invested in SsangYong, they took it up in belief that they will profit with launching more SsangYong products into the Indian market, which at the end they did not.

Here is a sales comparison of All the 3 Major SUV Segments in the Country between June 2019 & December 2019 - MahindraCamparo.xlsx

From what I see here, Mahindra's fault lies at the fact that it has 2 or more offerings in every segment which is leading to one product eating into the sales of the other. (Eg - TUV3OO into XUV3OO & Scorpio into XUV5OO). The segment where Mahindra has introduced a single product from SsangYong is the Full-Size SUV Segment. Herein lies the other problem. Mahindra, even though having come a long way from the days of yore still has the reputation of being a commercial vehicle maker due to the Bolero & to a certain extent, the Maxximo. People still do not picture Mahindra as the first brand when they think about a premium SUV and that is exactly the reason why the Alturas & Rexton failed. The XUV3OO, in contrast, is a much easier-to-accept product due to the lower sales tag and the segment in which it is placed which leads to more sales and better profitability to Mahindra.

Mahindra has also focused on multiple different ventures all at once - Commercial, SsangYong, Pininfarina etc thereby leading to reduction in concentration on all subjects.

As GTO mentioned, Mahindra has to set one target - Razor Sharp Focus.

[TorqueyTechie]

SsangYong Motor has picked up a manager, Samsung Securities to sell the stake held my Mahindra and to look for new investor. Total worth of the stake help is around $275 million.

More details in the article here from TOI.

[volkman10]

SsangYong partners with China firm for exports.

It has signed an initial agreement with Chinese carmaker Songuo Motors Co. to export its Tivoli sport utility vehicle.

Under the basic agreement, SsangYong Motor will deliver the Tivoli SUV in the form of knockdown units to Songuo Motors' plants in China to be assembled into complete vehicles for exports to the Middle East and Africa from late this year, the company said in a statement.

Songuo Motors plans to develop its own vehicle based on the Tivoli platform through technological partnership with SsangYong Motor and produce 60,000 units of the model a year at its plant in the Shandong Province

Link

[Venkatesh]

Ford Could Join Fray along with Volvo-owner Geeley, BYD and Vinfast to buy SsangYong Stakes from Mahindra.

https://gaadiwaadi.com/ford-could-jo...hindra-report/

[Vijin]

Chery to takeover or be a partner? Link

Just wondering what happens to xuv300 and Alturas in India if M&M decides to exit completely. Also, now that Chery's JV attempt with Tatas looks dead, not sure where they are with the independent foray into India, given the prevailing geopolitical situation.

[AZT]

HAAH Automotive Holdings, a California-based auto retail start-up company, has offered KRW 300bn (USD 258m) to acquire a controlling stake in South Korean SsangYong Motor Company.

The Korean-language report cited investment bank sources as saying that HAAH Automotive Holdings has sent a proposal for the South Korean auto maker on 17 September. Details of the proposal were not disclosed but it intented to invest KRW 300bn to acquire a controlling stake as enough to hold a management right. Mahindra & Mahindra (M&M), the largest shareholder of Ssangyong, is currently reviewing the proposal, it said.

[avishar]

Originally Posted by AZT

HAAH Automotive Holdings, a California-based auto retail start-up company, has offered KRW 300bn (USD 258m) to acquire a controlling stake in South Korean SsangYong Motor Company.

The Korean-language report cited investment bank sources as saying that HAAH Automotive Holdings has sent a proposal for the South Korean auto maker on 17 September. Details of the proposal were not disclosed but it intented to invest KRW 300bn to acquire a controlling stake as enough to hold a management right. Mahindra & Mahindra (M&M), the largest shareholder of Ssangyong, is currently reviewing the proposal, it said.

https://economictimes.indiatimes.com...%20UV%20player.

Reminder that Mahindra had spent Rs 2105 core or USD 463 million (back then) to acquire a 70% stake. The current valuation of a controlling stake looks like almost the same, but I wonder what did Mahindra do with the company for the last 9 years.

Two generations of the Rexton (2nd gen as Altura) and a Tivoli/XUV300. All flops.

Should have spent Rs 2000 crores back then into its product development, would have been a better use of their capital.

[ruzbehxyz]

SsangYong Motor misses Rs 408 crore loan repayment.

The M&M announcement details that SsangYong Motor Company has loans aggregating to 100 billion Korean Won (approximately Rs 680 crores). The filing stated that there are outstanding loans of 60 billion KRW (around Rs 408 crore) from JP Morgan Chase Bank, 10 billion KRW (around Rs 68 crore) from BNP Paribas and 30 billion KRW (around Rs 204 crore) from Bank of America.

SsangYong Motor Company is already in distress as a result of the global economic slowdown and decline in sales. Though earlier it was expected that the company will breakeven last year, it now seems to take even longer.

Mahindra has stated that, "while the company (M&M) has made a commitment to cover the above-mentioned loans to the banks, its final liability will be limited to the extent of amount not recovered from SsangYong Motor. On payment of the dues by the company to the banks, the company will be subrogated to all the rights of the banks against SYMC and the company will step into the shoes of the banks as creditor, and will be entitled to all rights which the banks had against SYMC, with respect to these loans."

It maybe recollected that till early February, Mahindra was looking to infuse funds in the Korean company, and had earmarked around Rs 2,800 crore to turnaround the company by 2022. But with the Covid-19 pandemic disrupting plans, and with mounting losses from its international businesses Mahindra in June announced that it will not make any further investment in SsangYong and Genze brand. Interestingly, Mahindra has been open that it would be willing to sell its nearly 75 percent stake in SsangYong.

Source: https://www.autocarpro.in/news-inter...epayment-77960

[avishar]

This headline caught my eye today, but unfortunately I don't have a subscription to read the rest of it.

South Korean Xenophobia As Much To Blame As M&M’s Strategic Mistakes With SsangYong

After struggling with it for more than a decade and losing millions of dollars in the process, the Mahindra & Mahindra Group (M&M) finally gave up on SsangYong Motor of South Korea by filing for bankruptcy at a Seoul court. This is the second time the company is filing for bankruptcy, its first being in 2009 when M&M bought it for $463 million from a scrapheap.

Many reasons are being adduced for M&M’s failure to turn around this South Korean maker of higher-end sports utility vehicles (SUVs), which should have strengthened it in its core business, which include the successful Bolero and Scorpio brands. These reasons include the current Covid disruption which has impacted all auto companies, a financially over-extended M&M group that diversified into two- and three-wheelers where it had no particular brand salience, and stronger competition in the Indian SUV market, but none of these mention the elephant in the room: Korean xenophobia.