Mahindra & Mahindra which emerged as the preferred bidder for SsangYong in August 2010, has completed all formalities related to the acquisition of a majority stake in SsangYong Motor Company (SYMC), the fourth largest South Korean automobile manufacturer.
The acquisition will pave the way for both Mahindra and SYMC to emerge as a strong force allied together in the global passenger vehicle industry, through their strategic partnership.
Dr. Pawan Goenka, President, Automotive and Farm Equipment Sectors, Mahindra & Mahindra said, “Mahindra was extremely conscious of SYMC’s Korean heritage and would only want to enhance it. SsangYong will be an independently run Korean company – with largely Korean Management – and will remain a Made in Korea brand.
He also announced that the new CEO of SYMC will be Yoo-il Lee, while Dilip Sundaram from Mahindra will be the new CFO.
“As one of the country’s premier automotive companies, SsangYong brings with it a rich legacy of R&D and innovation. This legacy, coupled with the synergies between the two companies in the areas of R&D, product development and platform sharing, will make the combined entity of Mahindra and SsangYong a force to reckon with in the global utility vehicle space. We are committed to nurturing the SsangYong brand in both the Korean and global markets and returning it to its days of glory,” said Dr. Pawan Goenka.
“Mahindra brings with it a great deal of passion, domain expertise and knowledge of the global UV market, as India’s leading utility vehicle (UV) manufacturer. All of us at SsangYong look forward to working closely with the Mahindra team to help develop a new product portfolio and gain momentum in overseas markets,” said Yoo-il Lee, CEO, SYMC.
Mahindra will benefit from market share of SYMC in the Korean and other markets and will provide direct access to the company. The company has also formed a Synergy Council comprising of senior management from both companies will be established to ensure focus and delivery of synergies between the two companies.
The Council will focus on various aspects such as global procurement, new car development and business strategy to penetrate international markets.
Strategic plans such as the India project which involves launching the Rexton and Korando-C in India have already been kicked off. Also under discussion are opportunities for joint product and technology development and synergy in global operations and purchase. Mahindra has a strong IT system that is being reviewed for suitability for SsangYong.
The company is also considering the possibility of Mahindra Finance setting up operations in Korea to enhance the sales of SsangYong vehicles.