The SsangYong Motor Company ( ko, 쌍용자동차 주식회사) is a South Korea–based
automobile
A car or automobile is a motor vehicle with Wheel, wheels. Most definitions of ''cars'' say that they run primarily on roads, Car seat, seat one to eight people, have four wheels, and mainly transport private transport#Personal transport, pe ...
manufacturer. It traces its origins back to a manufacturer established in 1954. The name SsangYong appeared in 1988, after its acquisition by the
chaebol
A chaebol (, ; ) is a large industrial South Korean conglomerate run and controlled by an individual or family. A chaebol often consists of multiple diversified affiliates, controlled by a person or group whose power over the group often exc ...
SsangYong Group
SsangYong Group is a South Korean-based Enterprise Group or conglomerate founded in 1987. ''SsangYong'', literally translated, means "Double Dragon". It was largely broken up by the Asian financial crisis in 1997.
The chaebol was forced to se ...
. SsangYong Motor was then acquired by
Daewoo Motors
Daewoo Motors ( ) was a South Korean automotive company established in 1937 as "National Motors". The company changed its name several times until 1982 when it became "Daewoo Motors" following its acquisition by the Daewoo Group. After running ...
,
SAIC Motor
SAIC Motor Corp., Ltd. (formerly Shanghai Automotive Industry Corporation) is a Chinese state-owned automobile manufacturer headquartered in Anting, Shanghai. Founded in 1955, it is currently the largest of the " Big Four" state-owned car manu ...
, and then
Mahindra & Mahindra
Mahindra & Mahindra Limited (M&M) is an Indian multinational automotive manufacturing corporation headquartered in Mumbai. It was established in 1945 as Mahindra & Mohammed and later renamed as Mahindra & Mahindra. Part of the Mahindra Group, ...
. In 2022, the company was acquired by the
KG Group
The KG Group (, ) is a South Korean '' chaebol'' established in 2003 and operating, through its affiliates, in various industries and other businesses (including chemicals, steel, services, and media). The main affiliates of the KG Group are KG C ...
. The SsangYong name is planned to be dropped by the company in March 2023.
The company main focus is
sport utility vehicle
A sport utility vehicle (SUV) is a car classification that combines elements of road-going passenger cars with features from off-road vehicles, such as raised ground clearance and four-wheel drive.
There is no commonly agreed-upon definitio ...
s (SUVs) and
crossover SUV
A crossover, crossover SUV, or crossover utility vehicle (CUV) is a type of automobile with an increased ride height that is built on unibody chassis construction shared with passenger cars, as opposed to traditional sport utility vehicles (S ...
s and it is preparing for transitioning to
electric car
An electric car, battery electric car, or all-electric car is an automobile that is propelled by one or more electric motors, using only energy stored in batteries. Compared to internal combustion engine (ICE) vehicles, electric cars are quie ...
s.
History
Dong-A Motor (1954–1987)
SsangYong originally started out as two separate companies; Ha Dong-hwan Motor Workshop (established in 1954) and Dongbang Motor Co (established in 1962). In mid-1963, the two companies merged into Ha Dong-hwan Motor Co. (). In 1964, Hadonghwan Motor Company started building
jeeps
Jeep is an American automobile marque, now owned by multi-national corporation Stellantis. Jeep has been part of Chrysler since 1987, when Chrysler acquired the Jeep brand, along with remaining assets, from its previous owner American Moto ...
for the
US Army
The United States Army (USA) is the land service branch of the United States Armed Forces. It is one of the eight U.S. uniformed services, and is designated as the Army of the United States in the U.S. Constitution.Article II, section 2, cla ...
as well as
truck
A truck or lorry is a motor vehicle designed to transport cargo, carry specialized payloads, or perform other utilitarian work. Trucks vary greatly in size, power, and configuration, but the vast majority feature body-on-frame construction ...
s and
buses
A bus (contracted from omnibus, with variants multibus, motorbus, autobus, etc.) is a road vehicle that carries significantly more passengers than an average car or van. It is most commonly used in public transport, but is also in use for cha ...
. Beginning in 1976, Hadonghwan produced a variety of special purpose vehicles. After changing its name to Dong-A Motor () in 1977 and taking control of Keohwa in 1984, it was taken over by
SsangYong Business Group in 1986.
Gallery
File:2000년대 초반 서울소방 소방공무원(소방관) 활동 사진 조명차.jpg, Dong-A DA 30 with Ha Dong-hwan body
File:19950629삼풍백화점 붕괴 사고17.jpg, Firetrucks produced by SsangYong and its predecessor, Dong-A Motor
File:Korea (27971985420).jpg, Ha Dong-hwan bus on the right
Keohwa (1981–1984)
Keohwa, Ltd. () was a South Korean assembler of
Jeep
Jeep is an American automobile marque, now owned by multi-national corporation Stellantis. Jeep has been part of Chrysler since 1987, when Chrysler acquired the Jeep brand, along with remaining assets, from its previous owner American Moto ...
s under licence, mainly for export markets.
Its predecessor was the Jeep assembly joint venture of
Shinjin Motors
Shinjin Motors or Sinjin Motors ( ko, 신진자동차, ) is a defunct South Korean car manufacturer.
A related bus manufacturer called "Shinjin Bus Manufacturing Company" was founded in 1955 as an independent company. It is now a part of Daewo ...
and
American Motor Corporation (AMC), established in 1974.
It was spun off as an independent company in 1981, after AMC left the venture and retired the permission to use the Jeep trade mark. In 1983, Jeeps from Keohwa started to be named as "Korando".
[ In 1984, Keohwa was acquired by the predecessor of SsangYong Motor, Dong-A Motor.
]
SsangYong Motors (1986–present)
After Dong-A Motor was taken over by SsangYong Business Group, Dong-A Motor changed its name to SsangYong Motor in 1988. In 1987, it acquired United Kingdom-based specialty car maker Panther Westwinds.
In 1991, SsangYong started a technology partnership with Daimler-Benz
The Mercedes-Benz Group Aktiengesellschaft, AG (previously named Daimler-Benz, DaimlerChrysler and Daimler) is a German Multinational corporation, multinational automotive corporation headquartered in Stuttgart, Baden-Württemberg, Germany. It ...
. The deal was for SsangYong to develop a sport utility vehicle
A sport utility vehicle (SUV) is a car classification that combines elements of road-going passenger cars with features from off-road vehicles, such as raised ground clearance and four-wheel drive.
There is no commonly agreed-upon definitio ...
(SUV) with Mercedes-Benz
Mercedes-Benz (), commonly referred to as Mercedes and sometimes as Benz, is a German luxury and commercial vehicle automotive brand established in 1926. Mercedes-Benz AG (a Mercedes-Benz Group subsidiary established in 2019) is headquartere ...
technology. This was supposedly to allow SsangYong to gain footholds in new markets without having to build their own infrastructure (utilizing existing Mercedes-Benz networks) while giving Mercedes a competitor in the then-booming SUV market. This resulted in the Musso, which was sold first by Mercedes-Benz and later by SsangYong.
SsangYong further benefited from this alliance, long after Daimler-Benz
The Mercedes-Benz Group Aktiengesellschaft, AG (previously named Daimler-Benz, DaimlerChrysler and Daimler) is a German Multinational corporation, multinational automotive corporation headquartered in Stuttgart, Baden-Württemberg, Germany. It ...
stopped selling the Musso, producing a badge engineered version of the Mercedes-Benz MB100, the Istana ''Istana'' is an Indonesian language, Indonesian and Malay language, Malay word meaning "palace".
Notable Istanas
*Istana Alam Shah, the official palace of the Sultan of Selangor
*Istana Besar, 19th- and early 20th-century residence of the Sultan o ...
and using Daimler designs in many other models, including the second-generation Korando
The SsangYong Korando (Korean: 쌍용 코란도) is a mini SUV or compact crossover SUV built by the South Korean automobile manufacturer SsangYong from 1983 to 2006 and from 2010 onwards. The name Korando is a contraction of "Korea Can Do".
The ...
(engine and transmission), the Rexton (transmission), the Chairman H (chassis and transmission) and the Kyron (transmission).
Takeover by Daewoo Motors and SAIC
In 1997, Daewoo Motors
Daewoo Motors ( ) was a South Korean automotive company established in 1937 as "National Motors". The company changed its name several times until 1982 when it became "Daewoo Motors" following its acquisition by the Daewoo Group. After running ...
, now GM Korea, bought a controlling stake from the SsangYong Group, only to sell it off again in 2000, because the conglomerate
Conglomerate or conglomeration may refer to:
* Conglomerate (company)
* Conglomerate (geology)
* Conglomerate (mathematics)
In popular culture:
* The Conglomerate (American group), a production crew and musical group founded by Busta Rhymes
** Co ...
ran into deep financial troubles. In late 2004, the Chinese automobile manufacturer SAIC took a 51% stake of SsangYong Motor Company. In July - August 2006, workers went on strike for 7 weeks to protest SAIC's plans to lay off 554 employees. The strike cost SsangYong 380 billion Won and negotiations ended with workers accepting a wage freeze.
In January 2009, after recording a $75.42 million loss, the company was put into receivership
In law, receivership is a situation in which an institution or enterprise is held by a receiver—a person "placed in the custodial responsibility for the property of others, including tangible and intangible assets and rights"—especially in ca ...
. This may have been due to the global economic crisis Global economic crisis may refer to:
*Economic events of the 21st Century:
**Financial crisis of 2007–2008
** Great Recession
**The 2020 stock market crash
*A global recession
*Earlier global economic events, such as:
**The Great Depression, a glo ...
and shrinking demand. In response to management's plan to cut 2,600 jobs, a third of the workforce, workers at Ssangyong's main factory stopped work and barricaded themselves inside in protest. One elderly worker died from a cerebral hemorrhage within the first 12 days. The strikes grew violent after water, food, electricity, and medicine were withheld from the strikers and police surrounded the building. Strikers threw Molotov cocktails at police while police used electroshock weapons and allegedly dropped corrosive chemicals on the strikers. On August 14, 2009, worker strikes finished at the SsangYong factory and production commenced again after 77 days of disruption. Company employees and analysts have also blamed SAIC for stealing technology related to hybrid vehicles from the company and failing to live up to its promise of continued investment. SAIC denied allegations of technology theft by the company's employees. However, SAIC was charged by the South Korean prosecutor's office for violating company regulations and the South Korean law
The legal system of South Korea is a civil law system that has its basis in the Constitution of the Republic of Korea. The Court Organization Act, which was passed into law on 26 September 1949, officially created a three-tiered, independent judi ...
when it ordered and carried out the transfer of SsangYong's proprietary technology developed with South Korean government
The Government of South Korea is the union government of the South Korea, Republic of Korea, created by the Constitution of South Korea as the executive, legislative and judicial authority of the republic. The president acts as the head of sta ...
funding over to SAIC researchers.
In 2010, Daewoo Motor Sales was dropped by General Motors
The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...
. The long-time dealership partner then signed a deal with the SsangYong Motor Company to supply new vehicles to sell (specifically the Rodius, Chairman W and Chairman H), in return for the injection of ($17.6 million) into the car maker still recovering from bankruptcy. The deal is non-exclusive, meaning SsangYong will also sell vehicles through private dealers.
Takeover by Mahindra Automotive
In April 2010, the company released a statement citing interest of three to four local and foreign companies in acquiring SsangYong Motor Company, resulting in shares rising by 15%. The companies were later revealed to be Mahindra & Mahindra
Mahindra & Mahindra Limited (M&M) is an Indian multinational automotive manufacturing corporation headquartered in Mumbai. It was established in 1945 as Mahindra & Mohammed and later renamed as Mahindra & Mahindra. Part of the Mahindra Group, ...
, Ruia Group, SM Aluminum, Seoul Investments and French-owned Renault Samsung Motors
Renault Korea Motors ( ko, 르노코리아자동차), is a South Korean car manufacturer headquartered in Busan where its single assembly site is also located, with additional facilities at Seoul (administration), Giheung (research and develop ...
of South Korea. In August 2010, Mahindra & Mahindra Limited was chosen as the preferred bidder for SsangYong. The acquisition was completed in February 2011 and cost Mahindra US$463.6 million.
In 2015, SsangYong launched the Tivoli
Tivoli may refer to:
* Tivoli, Lazio, a town in Lazio, Italy, known for historic sites; the inspiration for other places named Tivoli
Buildings
* Tivoli (Baltimore, Maryland), a mansion built about 1855
* Tivoli Building (Cheyenne, Wyoming), a ...
, its first car after Mahindra acquisition. Within a year of Tivoli's launch, the company reported its first net profit in 9 years. In 2017, SsangYong sold 106,677 units in domestic sales and 37,008 units in exports, setting a record high in 14 years since 2003, when its annual domestic sales stood at 131,283 units. Out of this, the Tivoli alone contributed over 50,000 units of domestic sales for the company. Mahindra XUV300, which was later launched in 2019 is built on Tivoli's platform, sharing many parts including several metal sheets.
Mahindra also worked with its SsangYong subsidiary to introduce high performance electric vehicles in South Korea for mass-market sales. Mahindra and SsangYong increased their collaboration on engines and electric cars.
On 21 December 2020, SsangYong Motor filed for receivership after Mahindra cut funding to SsangYong due to its outstanding debt. Ssang Yong Motor spokesperson stated that the company owes a total of 315.3 billion won (US$285 million) in overdue debt to financial institutions.
Failed takeover by Edison Motors
In October 2021, it was reported that SsangYong was set to be acquired by electric bus and truck maker Edison Motors which would lead to SsangYong exiting receivership. Edison Motors planned to introduce SsangYong vehicles into the United States, Mexico, and Canada markets by the mid-2020s. Edison Motors also intended to phase-out production and new car sales of fossil fuel-powered SsangYong vehicles by 2030, in favor of producing and selling only electric-powered vehicles by the latter, if acquired. In January 2022, the South Korean courts "approved" Edison Motors' acquisition plan, although the company would be kept in receivership until the transaction were completed. In March 2022, SsangYong said the Edison Motors takeover was cancelled as the latter failed making acquisition payments for that month.
In December 2021, SsangYong signed an agreement with the Chinese BYD Auto to co-develop battery systems for its first electric car
An electric car, battery electric car, or all-electric car is an automobile that is propelled by one or more electric motors, using only energy stored in batteries. Compared to internal combustion engine (ICE) vehicles, electric cars are quie ...
(called U100) which would be launched in 2023.
Takeover by the KG Group
In June 2022, the Seoul Bankruptcy Court opted for a consortium (KG Mobility) led by the KG Group
The KG Group (, ) is a South Korean '' chaebol'' established in 2003 and operating, through its affiliates, in various industries and other businesses (including chemicals, steel, services, and media). The main affiliates of the KG Group are KG C ...
as the final bidder to take over SsangYong Motor. The consortium planned to pay 900 billion won ($699.5 million) for SsangYong. In August 2022, South Korea's Free Trade Commission approved KG Group acquisition of a 61% majority stake in SsangYong through the consortium. The acquisition payments were completed later that month. In September 2022, the Seoul Bankruptcy Court agreed to SsangYong's receivership exit plan, including issuing new shares in order to pay the creditors. The KG Group was set to start the process to exit SsangYong's receivership in early October and finish the acquisition process on (or before) 14 October, the SsangYong sale deadline.
There also are plans to rename SsangYong.[ After delays, the consortium started the receivership exit procedures on 31 October by requesting the receivership termination to the Seoul Bankruptcy Court. The Court approved the receivership exit on 11 November, finalising the consortium's acquisition.
In December 2022, SsangYong's chairman Kwak Jae-sun said it plans to remove the "SsangYong" name entirely in March 2023 by modifying the articles of incorporation. The company is set to be renamed as "KG Mobility", adopting a new branding and using KG as its marque, to avoid the negative perception of the present name.]
Facilities
Offices
* ''SsangYoung Head Office'' - The Head office located in Pyeongtaek, South Korea. R&D Centre, Design Centre, and other departments are located in the Pyeongtaek office
* ''Seoul Office'' - Department under Head office is located in Yeoksam-dong
Yeoksam-dong is a ward of Gangnam-gu, Seoul, South Korea. Teheranno runs through Yeoksam-dong and has some of the tallest buildings in Seoul, comprising a collection of corporate headquarters and high-rise office buildings.
Economy
T'way Airline ...
, Seoul
Seoul (; ; ), officially known as the Seoul Special City, is the capital and largest metropolis of South Korea.Before 1972, Seoul was the ''de jure'' capital of the Democratic People's Republic of Korea (North Korea) as stated iArticle 103 ...
Factories
*''Pyeongtaek Plant (South Korea)'' - Main factory. Produces a complete range.
*''Changwon
Changwon () is the capital city of Gyeongsangnam-do, on the southeast coast of South Korea. With a population of 1.07 million , Changwon is South Korea's ninth-most populous city.
A port city, Changwon is bordered by Masan Bay to the south ...
Plant (South Korea)'' - Engine and parts factory.
Current model lineup
Former model lineup
See also
* Mahindra Group
Mahindra Group is an Indian multinational conglomerate, headquartered in Mumbai. The group has operations in over 100 countries, with a presence in aerospace, agribusiness, aftermarket automotive components, construction equipment, defenc ...
References
External links
*
{{DEFAULTSORT:Ssangyong Motor Company
Vehicle manufacturing companies established in 1954
Car manufacturers of South Korea
Truck manufacturers of South Korea
Manufacturing companies based in Seoul
SAIC Motor
Mahindra Group
South Korean brands
Car brands
Luxury motor vehicle manufacturers
South Korean companies established in 1954
2011 mergers and acquisitions