The auto major acquires Korea’s Ssyangyong Motor Company
Rumour, Blink, Reality. That’s exactly how within a short spell of time Mahindra & Mahindra (M&M) concluded its acquisition of Korean car maker Ssangyong Motor Company (SYMC) which means ‘Two Dragons’.
The acquisition certifies M&M’s continuous belief of Global expansion and a stunning turn- around of fortunes for Ssangyong, a company, until last year looking down the barrel and under- administration. The newly formed company shall be run by a 6-member board, consisting of 3 independent members, 2 from M&M and Mr. Yoo-il Lee appointed as the CEO. Ssangyong, will be run as an independent Korean company with its strongest asset, Korean management. Dr Pawan Goenka, President, Automotive & Farm Equipment Sectors, M&M has been appointed as the Chairman of SYMC.
Bullish as ever, Mahindra & Mahindra expect to increase its sales volume to 1.2 lakh units, a 49% growth over FY 2010-11. Of this, exports to Russia, West Europe and South America are expected to hover at 55% and the remaining in domestic sales. M&M also plan to introduce a manufacturing facility in Chakan, Pune and the Korando-C & Rexton SUVs are expected to arrive in India first. M&M, have also extended the IT system solutions to Ssangyong ensuring a systematic, productive and speedy output. This acquisition, certainly signifies M&M’s progressive approach towards Global markets.
