SEOUL: SsangYong Motor Co. said on Tuesday it would invest more than 240 billion won ($213 million) this year to develop new vehicles and build its brand after it was acquired by India's Mahindra and Mahindra Ltd. It will invest 200 billion won this year, up 70 percent from last year, in product development and another 40 billion won in brand building, the company said in a statement. The announcement came as Mahindra and Mahindra said Tuesday it had completed all formalities for the acquisition of South Korea's SsangYong. The Indian company became the preferred bidder for SsangYong in 2010. Ssangyong on Monday exited court-led bankruptcy protection as its financial status has returned to normal after the acquisition.
"We are committed to nurturing the SsangYong brand in both the Korean and global markets and returning it to its days of glory," said Pawan Goenka, president of Mahindra's automotive and farm equipment sectors. Mahindra plans to jointly use vehicle platforms with Ssangyong to manufacture new models, he said. Lee Yoo-Il, who worked as a joint manager for Ssangyong under the court-led bankruptcy protection, will be the company's new chief executive, he said. In November, Mahindra signed a final contract to buy a controlling stake in Ssangyong for 522.5 billion won ($463.6 million). Ssangyong had been under court-led bankruptcy protection since early 2009 as a slump in sales of its mainstay sports-utility vehicles dried up its cash reserves.
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