Mahindra & Mahindra Ltd. (M&M), has announced its selection as the "preferred bidder" for taking over a majority stake in struggling Ssangyong.
The Korean SUV maker which at one point appeared to be all but gone, is expected to benefit the most from this deal. Apart from making diesel and petrol engines, the company currently makes seven models under five brands and has sold over 1.3 million cars in its domestic market since 1990.
The Korean manufacturer was setup in 1962 and currently exports to 1,200 dealers globally. If the deal goes through, Mahindra (which is best known for creating commercial utilities) will leave Ssangyong in Korean hands.
“Korea is one of the world’s leading centres of automotive excellence and Ssangyong brings with it a rich legacy of R&D and innovation. Mahindra and Ssangyong will create synergy, which will make us significant global players,” said Mr. Anand Mahindra, Vice Chairman and Managing Director, Mahindra Group.
Mahindra plans to sell Ssangyong SUVs in the Indian market as well as utilise the company's R&D team for future vehicle technology. There is no confirmation as to how much Mahindra expects to pay for a majority stake in the company.
The Indians have recently bought out numerous car manufacturers around the world. Tata Motors (Mahindra's arch rival) is now the proud owner of Jaguar and Land Rover.