Ssangyong to launch its first car 'Tivoli' since Mahindra buyout
06 December 2014
Ssangyong Motors, the South Korean subsidiary of India's Mahindra & Mahindra, is set to launch its first car, Tivoli, following the buyout more than three years ago.
The B class SUV, to be equipped with the latest technology, will be launched in Seoul in January, Ssangyong chief executive Lee Yoo-il said, adding that following the launch the company hopes to launch a new car every year.
Talking to Hindustan Times in Seoul last week, Lee said it was the Indian company's investment of $520 million in March 2011 that saved Ssangyong and kept it debt free; last year another $80 million was injected into the company.
''In my opinion, Mahindra invested the money in this company for future strategic cooperation. We are now working with Mahindra to strategically cooperate and create a synergy effect,'' Lee said.
He said Mahindra has a very strong information technology side, which could be a platform for cooperation.
''They have a small engine, we have a big engine. In the future, we can develop an engine together, share the platform and the cost,'' Lee said, adding that both could bring their talents together to made car designs and frames.
Similarly the Korean company is good with technology while India could provide low-cost labour and ''smart engineers''.
Lee said there were initial issues during the buyout as the two entities did business in different ways, in different styles. ''There were cultural differences; differences in the way of thinking, way of doing business,'' he said.
The workers' unions were also very strong and they had apprehensions mostly because they did not know about India, the Ssangyong CEO said. Mostly, the workers only knew that India was a big country with ''many races and languages''.
During the negotiations, the union members were kept informed about the decisions, he said and now the issues have been ironed out.
Talking about the impending launch, Lee said the car is aimed at ''urban, young buyers aged between 25 and 35''.
It is likely to be exported to at least 100 countries including in Europe, South America, Asia and West Asia.
Lee said that with this launch, he hopes that the company will not only make a sharp turnaround but will continue to serve as an example of Indo-Korea entrepreneurial success story.