It is speculated that Mahindra intends to plonk down US$400million for Ssangyong. The reason why Mahindra want to purchase Ssangyong is that this would give it access to other markets, especially in South East Asia where Mahindra struggles to have any sort of brand presence. Of course, Ssangyong’s brand presence isn’t all too great in the first place. It only has about 2 percent market share in its Korean domestic market and some presence in Malaysia at the very least.
Taking over Ssangyong is not easy task. The company has suffered from workforce strikes and this had caused the delay of its flagship model, the C200 (pictured below) – the new Korando. It still hasn’t been launched even though it was previewed more than a year ago.
According to analysts, Mahindra has a reputation of settling labour disputes and may help iron out all work related issues. This purchase will enable Mahindra gain access to more modern diesel technology (Ssangyong seems to use a lot of Mercedes Benz diesel technology) and while it is expected that Mahindra’s profits will suffer for the next two to three years, things should pick up for them.
Personally, I just hope they come up with a new look Stavic soon. I have been driven in one. It is very comfortable and very refined for a diesel as it can cruise at 140km/h without any stress towards the driver or the passengers. The Mercedes Benz diesel engines are refined and the chassis adequate for long distance driving. Lucky when you get in one you do not have to look at it.
The SUV pictured below is a Mahindra Scorpio. This vehicle would certainly benefit for the access of technology that Mahindra would gain by purchasing Ssangyong. Try Comparing the Korando pictured above to this would be enough.