Asia Bizz: Mahindra & Mahindra To Takeover Controlling Stake Of Ssangyong Motors Of South Korea
India’s very own Mahindra and Mahindra has agreed that it will be taking over the controlling stake of South Korea’s Ssangyong Motors Ltd. Mahindra will be producing vehicles jointly with Ssangyong after the controlling stake has been signed. A preliminary agreement has been signed by Mahindra on Monday in Seoul.
Mr. Pawan Goenka has stated that both the companies will share technology and work together in vehicle production. He also added that the Mahindra company will be helping Ssangyong to build better technology and refresh their vehicle line up. Mahindra had been preferred by Ssangyong after the Rexton SUV failed considerably after it had merged with China SAIC motor Corp.
There are doubts coming up after Ssangyong has merged with Mahindra, as they feel whether Mahindra can bring up Ssangyong from its financial fall out after SAIC, even though SAIC was a bigger company than Mahindra, an analyst from Seoul stated. But Mr. Goenka stated that he was sure enough that after taking over Ssangyong they will be on the top of the SUV market.
Source: Bloomberg
