Sokor EV Maker Beats U.S. Bidder, Acquires SsangYong Motor

South Korea's consortium, headed by electric vehicle maker Edison Motors, was picked as the preferred bidder to take over India-owned carmaker SsangYong Motor, Kang Hye-young and Kim Tae-gyu reported for United Press International (UPI.)

Photo Insert: HAAH Automotive, a US distributor of imported brand vehicles, also threw its hat into the ring for India-owned carmaker SsangYong Motor. However, Edison Motors won out in the bid.

SsangYong Motor announced that it will apply for court approval for the decision on the preferred candidate, which also includes financial investors such as KCGI and Keystone Capital.

Once the bankruptcy court gives the nod to the plan later this month, due diligence will take place for two weeks before the final negotiations. SsangYong Motor expects that the contract will be signed next month.

HAAH Automotive, a US distributor of imported brand vehicles, also threw its hat into the ring by forming a consortium. However, Edison Motors won out in the bid.

Edison Motors and its partners held an online press conference Friday, estimating that the necessary funds to acquire SsangYong Motor would lie somewhere between $1.3 billion and $1.4 billion.

Edison Motors CEO Kang Young-kwon asked the state-run Korea Development Bank to lend about half of that amount. "We plan to electrify all of the internal combustion engine-based models of SsangYong Motor.

By 2030, SsangYong will become a profitable company and sales will amount to $8.5 billion," Kang said. SsangYong Motor's turnover stood at around $2.5 billion in 2020. India's Mahindra Group holds around 75 percent stake in SsangYong.

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