Filed under: SUV, China, Earnings/Financials, India, South Korea
India’s Mahindra & Mahindra may be joining forces with South Korea’s Ssangyong to share technology, costs and to create one of the biggest producers of SUVs in the world.
Ssangyong hasn’t exactly had the best track record when it comes to foreign ownership. While China’s SAIC Motor Group was at the helm, the South Korean automaker took a nose-dive that eventually led to bankruptcy, which is where the company is now. Earlier this month, Mahindra was picked as the preferred bidder for Ssangyong, though the principles involved in the transaction aren’t willing to say how much Mahindra & Mahindra has offered for the sinking Korean company.
Back in 2004, SAIC purchased 49-percent of Ssangyong for $500 million, but was largely criticized for failing to invest enough in the partnership. Analysts typically point to the lack of investment as the main reason behind the venture’s failure. Bloomberg reports that the Mahindra bid is somewhere in the $452 million range. Ssangyong has market value of $340 million.
[Source: Bloomberg]
Report: Mahindra joining forces with Ssangyong originally appeared on Autoblog on Mon, 23 Aug 2010 18:32:00 EST. Please see our terms for use of feeds.
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