SsangYong rising! New EVs, SUVs on the cards as new owners pay off debts

SsangYong’s financial woes are about to be a thing of the past, after its new owners finalised debt payments, allowing the brand to move forward with its new-model rollout.

The Korean car maker has struggled through ownership uncertainty and financial issues that put a question mark over the brand that started life in 1954.

On Friday, SsangYong Motor Company confirmed that it had completed the “repayment of the rehabilitation debt” using funds made available as a result of the acquisition of SsangYong by the KG Group.

Read More About Ssangyong

SsangYong saved! Kia and Hyundai rival is finally bailed out as Australian sales rise ahead of new Torres SUV launch Could SsangYong's new owner be an underwear brand? The drawn-out search for embattled Korean carmaker's saviour to be finalised this month 2023 Ssangyong Torres is coming to Australia! New rugged family SUV to take on Toyota RAV4, Kia Sportage, Jeep Cherokee and more

The “corporate rehabilitation procedure” is now completed, according to SsangYong, about 18 months after it commenced in April 2021.

As previously reported, SsangYong’s new owners were approved by the Korean Fair Trade Commission and the Seoul Bankruptcy Court in August this year.

It is a conglomerate led by chemical giant KG Group, which acquired a 61 per cent stake in SsangYong.

In a statement, SsangYong said it signed an agreement with the powerful union in July that focus on job security and long-term investment.

KG Group completed a second round of capital investment in October to pay debts, while a new chairman (Kwak Jea-sun) and a new CEO (Jeong Yong-won) were confirmed in September.

The Torres SUV is expected to land in 2023.

The statement said the company plans to re-steady the ship by “increasing sales and quickly making a profit”.

According to SsangYong, the shift to electrification will be the catalyst for future growth. As well, the launch of new models such as the Torres SUV will also drive growth. An electric SUV dubbed U100 - likely an electric version of the Torres - is set to launch in 2023.

Former SsangYong owner, Indian giant Mahindra & Mahindra, announced about three years ago that it planned to offload SsangYong, which led to a series of potential new owners that fell through.

Prior to KG Group’s successful bid, the most recent failed bid was from electric bus specialist, Edison Motors.

Throughout all of the dramas, SsangYong Australia has consistently said it was committed to the Australian market, and that it would continue to sell its models here.

Despite the dramas in Korea, SsangYong has enjoyed strong sales in Australia so far this year.

It has recorded 2967 sales to the end of October, which is 17.9 per cent ahead of the same period last year.

The Korando family SUV has found 455 homes, up 55.3 per cent year on year, while the Rexton large off-roader is up by 92.8 per cent to 1176 units. Only the Musso ute is down, dropping by 17.2 per cent to 1336, but it remains SsangYong’s top-selling model.