[condor]

Originally Posted by avishar

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

https://swarajyamag.com/world/south-...with-ssangyong

Swarjyamag allows 3 free articles per month without subscription. I did check the link, but the article does not go deep. Just says South Koreans want investment, but are not open to foreign involvement.

[TusharK]

Mahindra to sell a majority stake in SsangYong

Mahindra is looking to sell a majority stake of around 70% in the Korea-based SsangYong Motor Company (SMC).



Pawan Goenka, the Managing Director of Mahindra, has stated that the company is in serious discussion with an investor to invest in SMC for a majority stake. The term sheet is expected to be ready by next week.

If the deal goes through, Mahindra's stake in the company will be reduced to 30% or less. The company will also do a 25% capital reduction.

Mahindra had acquired SsangYong in 2010. It controls a 75% stake in the company. On December 21, 2020, SsangYong filed for bankruptcy after it failed to pay back its debts on time.

Source: Economic Times

[Venkatesh]

SsangYong Motor has been put under court receivership, the Seoul Bankruptcy Court said on Thursday, in an attempt to rehabilitate the car maker after majority owner Mahindra and Mahindra failed to secure a buyer.

Source

[anjan_c2007]

Ssangyong is now like an "albatross around the neck" of Mahindra and Mahindra. The phrase is dedicated to Samuel Taylor Coleridge's poem (1797-1798) entitled “The Rime of the Ancient Mariner.”

Albatross is an oceanic bird and viewed as one that is supposed to be a good omen for sailors (like Ssangyong once was for M&M).

In Samuel Coleridge's poem an albatross appears and leads the ship out of the ice jam where it is stuck, but even as the albatross is fed and praised by the ship's crew, a mariner shoots the bird. The crew is angry with the mariner, believing the albatross brought the south wind that led them out of the Antarctic, but soon change their minds to acquit the mariner. The sailors again change their minds now and blame the mariner for the torment of their thirst. In anger, the crew forces the mariner to wear the dead albatross around his neck, perhaps to illustrate the burden he must suffer from killing it, or perhaps as a sign of regret.

Ssangyong, once a performer during its earlier years, and now under the M&M banner a non-performer, faces a near similar fate as the mariner.

[CARDEEP]

Kudos @anjan_c2007, you have explained the situation beautifully. Even I was trying to recall this poem in this situation Mahindra & Mahindra is. Still, honestly, could not have worded as brilliantly like you... Hats off.

Coming to Mahindra & Mahindra, I feel pity of them, not many things have gone the way they had planned. It rather appears that their plans have been way off the mark. In dynamic modern automotive world, they should have let go Ssangyoung much earlier than trying to wriggle/ negotiate any way out. In fact, last time when they managed to negotiate extension for making payments was an incorrect & confusing decision, as they put up a plea that a buyer will be found for the Korean. But, it's reputation was in dumps & finances precarious, no eligible groom would like to marry Rodius' Mother for sure. The Roxor Saga & now this has given lot of bad name in International circles & the Pininfarina & FormulaE may not be enough to ward off the bad press in short term.

I'm sure the upcoming XUV*oo & Scorpio (/n) will bring in good numbers, but somehow don't feel those will be sufficient to go halfway as planned. They need something really special, no short cuts, no chop jobs (XUV300~Tivoli)... Just give their heart & sweat to Indian & other markets they are.

Additionally, they should try to improve the looks of vehicles - Bolero & KUV100, bigger boot - Marazzo & XUV300 & make buyers/ owners feel special at Service Centres. I know their cash cow Bolero has front axle problem - one of my acquaintances bought one & later replaced it with a Scorpio, paying premium for latter, only to be disappointed with harsh ride & poor dynamics.

With recent change nik guard, I fear they will take sweet time to energe out, but, I'm sure they will.

[volkman10]

Mahindra & Mahindra Ltd. finds no buyer for SsangYong.

The South Korean manufacturer has taken legal protection as the last step before it files for bankruptcy.


Link

[padmrajravi]

I hope they don't find a buyer for it and commits deeply to reviving Ssangyong. I think all Ssangyong needs is a restructuring. Mahindra has access to one of the world's cheapest manufacturing bases and brand identities as an SUV maker in the third and seventh largest automotive markets in the world. I think the fail-fast strategy is one of the biggest reasons why Mahindra is not able to benefit from any of their acquisition.

If they are that strapped in cash, they can just halt all of Ssangyong's korea manaufacturing operations for a while and sell Mahindra vehicles as Sssangyong and try to get revenues. New generation Thar and Scorpio will be a hit in any country that fancy proper SUVs. They already have manufacturing capaility in India for Tivoli and Rexton.

The biggest manufacturer of South Korea is the biggest exporter of cars from India. Mahindra has access to the same manufacturing skillset at an even cheaper rate because of their desi roots. All future manufacturing of Ssangyong and Mahindra could only be in India and Mahindra can tap only the product development skills of Ssangyong. Looking at Tivoli and Rexton, they are not bad at product development.

[TusharK]

US-based HAAH Automotive Holdings to acquire Ssangyong

According to a media report, US-based HAAH Automotive Holding is set to acquire Ssangyong Motor Co.



The report states that Mahindra had been in talks with HAAH since last year. The latter plans to acquire a majority stake in Ssangyong and will submit a Letter of Intent (LoI) by July 30, 2021.

At present, Mahindra holds a 74.65% stake in Ssangyong. The company has been going through financial turmoil and was even placed under court receivership for the second time in April this year.

If HAAH succeeds in acquiring Ssangyong, the company plans to introduce the brand in the USA and Canadian markets.

Source: ET Auto

Link to Team-BHP News

[volkman10]

Troubled SsangYong Motor poised to sell itself to South Korean EV startup.

Debt-laden automaker seeks to escape slump under Edison Motors.

SsangYong said it chose the Edison Motors-led consortium, which includes a South Korean investment fund, based on such factors as the offer price, its members' fundraising strength and future plans. The deal is estimated to be worth about $260 million.

Link

[abhishek46]

Mahindra acquired an already ill-fated Ssanyong for about Rs2200crores in 2012.
Later they pumped in another 700Crores, Ssanyong was on ventilator by then.

As everyone else expected, disaster stuck soon after.
The inevitable happened & the patient went dead.

Luckily though, By god's grace, the genius guys at Mahindra still found someone, who would buy the dead guy's bones & skeletons for a princely 2000Crore.

So, Net-net, a loss of around 9 years of effort, & 900Crores in Cash.

In the end, What did they gain?
- The Tivoli Chassis (surgical butt removal was performed though)
- Some Switches & Electrical Items.
- The G4 Alturas royalty etc. which no one bought or remembered.

[ashis89]

Originally Posted by abhishek46

Luckily though, By god's grace, the genius guys at Mahindra still found someone, who would buy the dead guy's bones & skeletons for a princely 2000Crore.

So, Net-net, a loss of around 9 years of effort, & 900Crores in Cash.

I believe Mahindra didn't sell its stake but relinquished it, thereby losing the whole 2900 crore.

PS: Tata had lost a similar amount when they had to relocate the Nano factory from Singur.

Ssangyong has found itself a new investor who will invest another 2000 cr into their firm.

In the end, What did they gain?
- The Tivoli Chassis (surgical butt removal was performed though)
- Some Switches & Electrical Items.
- The G4 Alturas royalty etc. which no one bought or remembered.

Mahindra learnt how to design good quality interiors which reflected in the new launches such as Marazzo. They might have gained some engineering prowess and engine designs too.

[v1p3r]

Originally Posted by abhishek46

Luckily though, By god's grace, the genius guys at Mahindra still found someone, who would buy the dead guy's bones & skeletons for a princely 2000Crore.

Well, you can be sure their genius guys will be active with some homilies on Twitter.

Originally Posted by ashis89

Mahindra learnt how to design good quality interiors which reflected in the new launches such as Marazzo. They might have gained some engineering prowess and engine designs too.

The cost of this 'learning' is approximately a billion dollars, given the ROI they could have got on their money with even a conservative fund manager.

[condor]

Originally Posted by abhishek46

So, Net-net, a loss of around 9 years of effort, & 900Crores in Cash..

To nit-pick a bit, 2200 Cr in 2012 isnt the same as 2200 cr today. So their loss is much more.

But the deal, or deed is now done. Hopefully SsangYong will be able to revive itself, and Mahindra moves on with what it has learnt from SsangYong - technically and business wise.

[shashi792]

On a lighter note: Another company spoiled by Mahindra. I think companies should distance themselves from Mahindra acquiring them or even collaborating with them. Initially, it might look like a ventilator, but it's death for sure.

Few examples:
1) Reva.
2) Freedom bikes.
3) Mahindra-Renault (Mahindra- Renault Logan). Renault saw a bit of success only after Duster under Renault-Nissan.
4) SsangYong Motor Company.

[landcruiser123]

https://auto.hindustantimes.com/auto...803670815.html

South Korea's SsangYong Motor will have new owners once again after the company confirmed on Monday that it had been acquired by a local consortium for 305 billion Won or approximately $254.56 million. SsangYong Motor had been under court receivership for several months after majority owner Mahindra had failed to find a new buyer.

...

SsangYong Tivoli was the first car off the blocks once the Indian company took control but while there were plans to go big on SUVs and even consider a deep dive into electric vehicles, not much confidence was evoked due to plunging sales numbers.

Looks like the deal is done. I'll not be surprised if that local consortium is related to Hyundai-Kia in some capacity.

Would be interesting to see the fate of Daewoo if the owners (GM) go on truck-selling spree.