Edison Motors announced its willingness to acquire Ssangyong Motors. The company’s ambition is to support the company to lead the turnaround within five years if it acquires Ssangyong Motor.
“We are a capable company to acquire Ssangyong Motors,” said Kang Young-kwon, CEO of Edison Motors, in a telephone interview on the 25th. said. CEO Kang explained that if about 300 billion won is added to the institutional investment, a total investment amount of 500 billion won can be generated.
Edison Motors, located in Hamyang-gun, Gyeongsangnam-do, was established in October 2015 and currently produces e-fiber low-floor electric buses and smart T1 electric trucks. In the second half of this year, the company plans to unveil the initial model of a large sedan passenger electric vehicle and to sequentially produce electric vehicle models for passengers.
Edison Motors began developing a skateboard-type electric vehicle platform called a’smart platform’ five years ago.
Edison Motors plans to release an initial model of a large sedan electric vehicle called’Smart S’at the end of this year. If the reaction is good, we plan to apply the platform applied to Smart S to Ssangyong.
CEO Kang said, “If cooperation with Ssangyong Motors is achieved, not only Smart S but also Mussona Chairman can be developed and released as an electric vehicle.”
Currently, the preferred target for Ssangyong Motor’s acquisition negotiations is HAAH Automotive in the United States. However, HAAH is delaying the timing of Ssangyong’s investment decision. This is due to the burden of Ssangyong Motor’s public interest bonds worth 370 billion won. This exceeds the investment amount of 280 billion won announced by HAAH.
The court ordered Ssangyong Motors to submit a letter of intent to take over investors by the 31st, but it remains unclear whether Ssangyong Motors will keep it.
If Ssangyong Motors fails in negotiations with HAAH in the United States, the possibility of negotiations with Edison Motors remains. However, there are also voices that HAAH should watch the situation as it has the right to negotiate by mid-next month.
CEO Kang said, “We do not have the right to negotiate ourselves yet, but we are currently exchanging opinions with third parties.” “We can turn Ssangyong into a surplus within five years.”
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CEO Kang said that the acquisition of Ssangyong Motor will not restructure its factories, sales personnel, research and development personnel, and labor unions. In the case of the union, it also said that if it actively pursued the acquisition, it would compensate the wage portion with preferred stocks.
If Edison Motors acquires Ssangyong Motors, it will maintain its internal combustion locomotive sales network, but will sell electric cars online. Rather than artificially increasing the sales network, the company plans to lead Ssangyong’s revival by setting up a new sales strategy.