You can’t currently buy a Mahindra-badged truck in North America, but you’ve probably heard of the brand before. Repeated efforts to enter the market with a low-cost pickup have failed – but the Indian automaker has finally succeeded in acquiring a majority stake in Korea’s SsangYong.
Both Indian automaker Mahindra and Korean automaker SsangYong consider themselves specialists in utility vehicles, with Mahindra leading the utility market in India and SsangYong laying claim to building the first-ever SUV manufactured in Korea back in 1988, known as the Korando Family.
Indian automaker Mahindra says that the single largest benefit it hopes to gain from the merger is the ability to harness synergies between the two companies. As a result, a Synergy Council is planned that will contain senior management representing both companies, with the aim at improving global procurement, new car development and business strategies in order to penetrate various international markets.
Mahindra dishes details
Although the ink from the deal between the two automakers is still drying, already Mahindra is not being shy about sharing details and plans for SsangYong moving forward. For example, Mahindra laid out a five point agenda for the Korean automaker: strengthen the product pipeline, harness synergies between the two automakers, invest in the SYMC (SsangYong Motor Company) brand, build human resources and focus on creating financial stability.
SsangYong has also laid out proposals for investments in 2011, which include for a 70 percent increase in product development compared to 2010, or at least $177 million. SsangYong also intends to spend $35.5 million, or a 60 percent increase in brand building within Korea, and an increase of four fold in international brand building.
Representatives from both automakers made a point to mention several times that neither company desires to change the heritage or style of the other, suggesting that the companies hope to help each other more behind the scenes than in blending vehicles.
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