- Mahindra has signed the paperwork to acquire a majority stake in Ssangyong.
- Ssangyong is a Korean company that specializes in SUVs.
- Trucks are Mahindra's specialty, too; it plans to launch a diesel pickup in the U.S.
SEOUL, South Korea — India's Mahindra and Mahindra, which is preparing to launch a diesel-powered pickup in the U.S., has signed a memorandum of understanding to acquire a majority stake in Ssangyong Motor, the ailing Korean automaker.
Both companies specialize in utility vehicles but produce other models as well. Earlier this year Mahindra acquired a majority stake in Reva, an electric vehicle manufacturer.
Ssangyong previously was controlled by China's Shanghai Auto. When sales collapsed two years ago, the Korean firm was forced into court-supervised receivership.
Mahindra said it plan to retain Ssangyong's Korean management.
Inside Line says: Mahindra may be a better strategic fit for Ssangyong than Shanghai Auto. — Anita Lienert, Correspondent
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davedutton12 says:
04:18 PM, 08/25/2010
I wouldn't buy anything from either of these companies. Fugly designs with underpowered engines and antique transmissions from third world countries? Only the mis-informed or gamblers will buy one. I guess the Wal-Mart crowd will swoon over them though.
jepontiac says:
05:23 AM, 08/25/2010
To bad Mahindra's truck starts at $5k more than other compact pickups. It has the same torque, but less horsepower and its payload and towing are merely on par despite its deisel powerplant. I have to admit that it does get good mileage, but it is a dog, both in function and in style. Let's not forget that world reknowned Indian quality.
tdiluv says:
05:13 PM, 08/24/2010
YES,YES,YES, bring on the smaller DIESEL pick-ups and the big bloated trucks (guzzlers) will have to sing another tune instead of WOW, look at us we have the highest mpg's(20 advertised 17 real)! The KOREAN LINK UP SHOULD HELP IT TO REALLY HAPPEN!!!