"With Secured Investment Funds and Electric Vehicle Technology, We Will Definitely Save Ssangyong Motor"
Edison Motors was selected as the preferred bidder for the acquisition and merger (M&A) of Ssangyong Motor on the 20th. Kang Young-kwon, Chairman of Edison Motors (photo), said in a phone interview with our newspaper after being selected as the preferred bidder on the 20th, "I will revive Ssangyong Motor successfully."
[Asia Economy Reporter Ki-min Lee] "I will grow Ssangyong Motor into a company with international competitiveness. I am confident."
Kang Young-kwon, chairman of Edison Motors, expressed this ambition in a phone interview with our newspaper immediately after the Edison Motors consortium was selected as the new owner candidate of Ssangyong Motor on the 20th. He said, "Based on the funds prepared for (Ssangyong Motor) investment and electric vehicle technology, we will revive Ssangyong Motor."
Chairman Kang first emphasized, "I believe that successfully revitalizing Ssangyong Motor is good for both the nation and Ssangyong Motor’s employees. So far, our company is the only one with the technology, funds, capability, and will to properly rehabilitate Ssangyong Motor."
Edison Motors plans to accelerate the launch of new eco-friendly vehicle models such as electric cars and hybrid cars based on the technology accumulated through its know-how in electric bus production. Next year, it plans to release 10 types of electric vehicles including sedans and sport utility vehicles (SUVs), with plans to produce and sell 20 models by 2025 and 30 models by 2030. Chairman Kang also stated, "We plan to launch electric vehicles using a platform equipped with batteries capable of traveling 450 km to 800 km."
Earlier, Edison Motors launched the improved-performance ‘Smart110’ electric bus in July. The new electric bus is equipped with an LG Energy Solution NCM Cell 348kWh battery and achieved an official Ministry of Environment certified single-charge driving range of 475 km (92% Depth of Discharge, and over 500 km at 100% Depth of Discharge).
Additionally, Edison Motors aims to increase Ssangyong Motor’s production to about 300,000 units annually, including 150,000 electric vehicles, and plans to turn a profit within 3 to 5 years. Currently, Ssangyong Motor’s production capacity is around 280,000 units, but sales have dropped from 150,000 units in recent years to about 100,000 units. To return Ssangyong Motor to profitability, it is necessary to start selling eco-friendly vehicles such as hybrids and electric cars while continuing production of internal combustion engine models.
At a press conference in August, Kang Young-kwon also said, "I will make Ssangyong Motor a company that sells 6 to 10 million units annually under its brand, standing shoulder to shoulder with Tesla, Volkswagen, and Toyota."
Edison Motors plans to raise 800 billion to 1.5 trillion KRW within 2 to 3 years by attracting institutional investments without conducting artificial restructuring of Ssangyong Motor. Chairman Kang mentioned, "We have already secured 800 billion KRW for Ssangyong Motor investment."
Regarding industry criticism that Edison Motors’ proposed acquisition price of around 260 billion KRW lacks competitiveness, Chairman Kang explained, "If too much acquisition capital is spent upfront, it becomes impossible to invest later. We proposed an amount suitable for acquisition based on due diligence."
Chairman Kang also clearly stated that the will of Ssangyong Motor’s employees is important for the company’s revival. He said, "If Ssangyong Motor’s employees unite and show their determination to save the company, I am confident we can grow it into an international company." The Ssangyong Motor labor union has maintained a no-strike record for the past 12 years and expressed their intention earlier this year to maintain no strikes until the company returns to profitability, participating in efforts to save the company.
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