Mass production of Ssangyong Motor’s Torres begins on the 27th…The first step to business normalization

On the 27th, Ssangyong Motor started mass production of the mid-size sports utility vehicle (SUV) ‘Torres’, taking the first step towards normalization of business. Ssangyong Motor will return all its employees, who took unpaid leave last year, to the site for smooth production of the Torres, which exceeded 20,000 pre-contracted units in two weeks.

Ssangyong Motor will start Torres mass production (SOP) on the 27th and switch to a two-shift system from the 11th of next month to expand production capacity.

Ssangyong Motor’s labor and management reached an agreement last week and decided to switch from daytime work to two day and night shifts for the first time in a year. Employees are divided into two groups of 8 hours each and work in two shifts from 7 am to 12:20 am the next day. You can also work 1-2 hours overtime if necessary.

Mass production of Ssangyong Motor's Torres begins on the 27th...The first step to business normalization

Ssangyong Motor also decided to end the unpaid cyclical leave implemented in July last year as the number of manpower required to operate the production line increased. At that time, 50% of technical workers (production workers) and 30% of office management workers went on unpaid cyclical leave, but they all returned to work after one year as they started working in two shifts.

Ssangyong Motor is focusing on responding in a timely manner by increasing production to meet the explosive demand for Torres. Torres signed a contract for 12,000 units on the first day of the pre-contract on the 13th. Currently, the cumulative number of contracts has reached 23,000. Consumers flocked to the tough design and aggressive pricing strategy starting at the late 20 million won.

The monthly production capacity of Ssangyong Motor’s Pyeongtaek plant is 12,500 to 13,000 units when converted to two shifts. In the sense that mixed production is possible, we will focus on Torres, which has increased pre-contracts. Torres monthly production is expected to be 3,000 to 4,000 units.

Ssangyong Motor also requested cooperation from parts makers for smooth production. It focuses on preventing the demand for Torres from escaping due to supply and demand problems of parts and semiconductors.

Ssangyong Motor is in the process of selling, but this year’s results are relatively good. Until last May, domestic sales were 23,592 units, exceeding Renault Korea Motors (18,715 units) and GM Korea (13,120 units).

The next task is to improve export performance. In addition, it is necessary to resume production of the first electric vehicle ‘Korando Emotion’. Korando Emotion has stopped production as LG Electronics, a battery pack supplier, cut off the supply of parts.

Ssangyong Motor plans to continue developing new cars, including eco-friendly cars, by attracting additional investment from new acquirers. The Kwanglim Consortium led by SsangBall Group participated in the bidding for the sale of Ssangyong Motor, which ended on the 24th. Ssangyong Motor and EY Hanyoung Accounting Corporation, the lead underwriter for the sale, will select one of the KG consortiums, which was previously selected as ‘Conditional Acquisition Prior to M&A Announcement’, as the final acquirer after a review this week.

By Park Jin-hyeong, staff reporter


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