Mahindra buys Ssangyong

[bossottoelango 0]

Source:

http://www.business-standard.com/india/news/mahindra-looks-to-buy-korean-auto-company/393143/

 

If Mahindra Suceeds in acquiring Ssangyong, we should be able to see world class SUV coming to India at affordable rates... Good Luck...

[CYRUS43 0]

I Hope we dont see any of the Ssangyong products in India ever.

[winner48 0]

@ cyrus

Atleast they will be better than mahindra SUVs

[tejasmehta990 4]

M&M badly need a foreign collaboration / takeover since TATA is far ahed in takeovers and doing much better in foreign market than M&M.

If M&M is eying for Ssangyong, M&M will have access to to their technology and world wide dealer network.

But from the previous JVs by  M&M (Mitsubishi and Renault) it seems that M&M is not good at successful JVs.

[bluesapphire 1]

They are definately not eyeing for any JV's now, this is for controlling stake. If the deal is available for profitable amount, then its a nice idea like Geely got Volvo for $1.8billion while the same was bought by Ford at around $6.6billion. Also though Ssyangyong isnt that good company still its better than Mahindra in terms of Quality & maybe they have some expertise for SUV's which might be helpful/useful to M&M to access & also to access the Korean & other markets.

[creativebala 178]

Most of us would be ready to accept a SUV like this in Scorpio's price band

[CYRUS43 0]

@winner48: Wait for the W201 project to get completed.

@bala: Agreed that the above is a decent looking SUV, but it is just a concept. In reality they make ugly cars like the Rexton.

[sarabjeet 3]

Ssangyong manufacture Rexton II in Srilanka and i think they are doing pretty good , they do make small hatches also but ugly once . Mahindra will not gain anything apart from market share , are they looking for engines and R&D unit of Ssangyong ?

[bossottoelango 0]

Mahindra if Succeds in getting Ssangyong Soon, may use this above prototype model mated with a MHawk engine to debut in US.

 

Perfect combination SUV to enter USA.

 

These kind of mid range SUV which consumes less gas (also costing less) are in great demand in USA after the recession.

[sarabjeet 3]

@bossottoelango

that doesn't make any sense why would mahindra put Mhawk in Ssangyong prototype? they them self are testing a CRV type crossover which seems to be a true class leading desgine

[anjan_c2007 1]

Again hats off to M&M. It has closed in on the Ssangyong deal.The company gets new SUV technology and all the state of the art R&D facilities come to M&M along with.

But the flip side is that the Ssangyong SUV's were gas guzzlers that ate into the company's health leading to its sickness.

But M&M with its market savvy will do some "Lift Kara De" now!

anjan_c20072010-08-13 15:24:58

[dr_nishu 198]

Finally after the long Race for the acquisition of the Korean carmaker Ssangyong Motor Co. began a few months back and a few days back Mahindra and Mahindra was already chosen as the preferred bidder for the brand. However, the good news is now out

[sgiitk 0]

Threads merged:, Label changed. MOD

[rameshbabu.n 6]

CONGRATULATIONS

M&M.

One more global automaker gobbled up by an Indian Firm.

I am really happy about it.

[jimgeo 0]

The beast marries the ugly. How their children will look like?!!

[shanthanreddyp 0]

They are definately not eyeing for any JV's now' date=' this is for controlling stake. If the deal is available for profitable amount, then its a nice idea like Geely got Volvo for $1.8billion while the same was bought by Ford at around $6.6billion.[/quote']

Though this deal appears cheap to all but the trick lies here.

This is a profitable deal to Ford if they sell the company to a low profile company.

Reason...The buyer will have no right over the parts except the sales of the vehicle for another few years. That means Ford sells all the components to the new owners as they have a lock-in period with Ford for component supply as the buyer does not have techology to run these cars.

By the time these companies develop the technology Ford would have covered the loss in Engines, Gear boxes & component supplied to this new owner.

This is eligible for TATAs too for buying Jaguar & Land Rover too.

"TATA MOTORS plans to develop new engines for JLR" even after nearly 2 years of taking over JLR. This will take more than 3 years. By this time Ford will rake in profit, only if TATA plans to change component/ technology suppliers (like FIAT)

[shanthanreddyp 0]

More news coming:

South Korea's anti-trust watchdog said on Friday it has approved the sale of troubled auto firm Ssangyong Motor to Mahindra and Mahindra

The commission said the deal would enhance competition in the domestic market and increase Ssangyong's exports.

So exp[ecting the new Mahindra Ssanyong soon.

[shanthanreddyp 0]

Deal is to be inked by Nov. and Mahindra will gain full control by end of the FY., i.e., March 2011.