Ssangyong Motor comes to life, revitalization UP… Torres M&A double wings ‘widely’

Torres begins mass production of immigration… Uninterrupted production ‘concentration’
M&A, KG compete to offer 400 billion won for Ssangdrop’s takeover

Ssangyong Motor is alive. Following the mass production of ‘Torres’, a mid-size sports utility vehicle (SUV) this week, the company aims to normalize its business by confirming the acquisition company.

According to related industry sources on the 27th, Ssangyong Motor will announce the mass production of Torres at its Pyeongtaek plant this week. Ssangyong Motor plans to increase Torres production capacity in the future to deliver to consumers without any setbacks.

To this end, Ssangyong Motor’s labor and management recently agreed to switch to a two-shift system starting on July 11. It is the first time in a year to switch from the existing day shift to two shifts. The workers are divided into two groups of 8 hours each. If necessary, an overtime of 1 to 2 hours is implemented. Ssangyong Motor also decided to return to the original unpaid cyclical leave implemented in July last year in line with the transition to a two-shift system this week.

This is the Torres box office effect. It is known that Torres has achieved a cumulative total of 23,000 pre-orders since the start of the pre-order on the 13th. More than 12,000 contracts were made on the first day of the pre-order alone. The number of contracts signed on the first day was the highest ever among new cars released by Ssangyong Motor. In the meantime, the highest performance on the first day of the pre-order was ‘Actyon’ (3013 units), which was released in 2005. Torres increased four times compared to the number of units on the first day of the pre-contract at the time. Ssangyong Motor plans to focus on smooth production so as not to deviate from demand due to supply and demand problems such as semiconductors and parts.

The industry analyzed that the popularity of Torres may have affected the sale. This is because Ssangyong Motor has proven its competitiveness to revive with the launch of a new car.

The price has already gone up. This is because the two-way battle between the KG Group and SsangBall Group, which jumped into the takeover of Ssangyong Motor, has rekindled, and a higher acquisition price has to come out. The final acquisition date for Ssangyong Motor will be decided this week. Ssangyong Motor is selling under the ‘stalking horse’ method, in which a conditional investment contract is signed with a prospective acquisition and the acquirer is confirmed through an open bidding.

Previously, Ssangbool Group was defeated by KG Group in a bid to select a stalking hose contractor. At the time, it was reported that KG Group offered about 350 billion won and Ssangbangul Group offered 380 billion won for the bid. However, in the proof of funds, KG Group received a higher evaluation and was selected as a prospective acquisition partner. Since then, the SsangBall Group has re-challenged with a proposal to take over the SsangBul group on the 24th. SsangBul Group is aiming for a last-minute turn over in this bidding.

The industry estimated that SsangBul Group would have spent 400 billion won for the acquisition this time. If operating funds are included, the total purchase price can reach 1 trillion won. In addition to the acquisition price, it is expected that SsangBul Group will strengthen its financial evidence. In this case, the KG group can take over Ssangyong Motor only if the conditions of the acquisition proposed by the Ssangbool Group are met. Otherwise, Ssangyong Group will embrace Ssangyong Motor.

A Ssangyong Motor official said, “The Torres market response is hot, and there will be some areas that can create good synergy in the M&A process. It will become a better company.”

[신아일보] Reporter Lee Eun-eun

selee@shinailbo.co.kr

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