Mahindra has announced that it has completed all formalities related to the acquisition of a majority stake in SsangYong Motor Company (SYMC) and that the company is no longer in Court Receivership. Mahindra had emerged as the preferred bidder for SsangYong in August 2010. This marks the beginning of a new journey for SYMC and will also 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.
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.
Mahindra has also proposed the following five point agenda for SsangYong : –
* Strengthening the product pipeline
* Harnessing synergies between the two companies
* Investing in the SYMC brand
* Building human resources
* Focusing on financial stability
SsangYong has proposed the following investments : –
* In 2011, the business plan calls for a 70% investment increase in product development, as compared to last year, at over KRW 200 billion
* Over 40 billion KRW for brand building in Korea – a 60% increase over 2010 – and an increase in overseas brand investment by over four times, in 2011.