Ssangyong Motor Signs Basic Agreement on KD Sales and Technical Cooperation with China's Songua Motors

Ssangyong Motor has signed a basic agreement with China's Songwa Motors and Hyolim Precision for the sale of Tivoli KD and platform technology cooperation. The photo shows Shin Yong-bok, President of Songwa Motors in China (left in the photo), Ye Byung-tae, CEO of Ssangyong Motor, and Kim Jong-jin, President of Hyolim Precision, posing for a commemorative photo after signing the contract at Ssangyong Motor's Seoul office on the 18th. Photo by Shin Yong-bok

[Asia Economy Reporter Kiho Sung] SsangYong Motor announced on the 19th that it has signed a basic agreement with China's Songwa Motors and Hyolim Precision for the sale of Tivoli automobile semi-knockdown parts (KD) and platform technology cooperation.

On the 18th, the three companies held a contract signing ceremony related to technology cooperation at SsangYong Motor's Seoul office, attended by SsangYong Motor CEO Yebyeongtae, Songwa Motors Chairman Shinyongbok, and Hyolim Precision President Kim Jongjin.

Following this basic agreement, the three companies plan to sign detailed contracts in the future. Accordingly, Songwa Motors will assemble and produce some modified models of SsangYong Motor's Tivoli in KD form at Songwa Motors as early as the end of this year and export them to regions such as the Middle East and Africa.

Additionally, through technology cooperation with SsangYong Motor, Songwa Motors will develop a separate proprietary model using the Tivoli platform and produce it at Songwa Motors' China factory (Hi-Tech Zone, Dezhou City, Shandong Province). They plan to expand production volume to about 60,000 units annually in the future.

Songwa Motors is an electric vehicle company with local production plants in China and Bulgaria, and is currently constructing an assembly plant for electric vehicle production in Poseung Industrial Complex in Korea.

Hyolim Precision is a specialized manufacturer of automobile axles and chassis modules, having produced axles for Rodius chassis, Musso, and Rexton. Through this cooperation, they plan to develop axles to be applied to Songwa Motors' production models in the future.

SsangYong Motor emphasized that this project, including technology cooperation with Songwa Motors, will boost global sales volume and accelerate the ongoing management normalization efforts.

Currently, SsangYong Motor is smoothly progressing with the sale of non-core assets, such as the Busan Logistics Center and Seoul Service Center, to raise new funds, and is accelerating new car development in preparation for market improvement after the COVID-19 crisis.

Moreover, SsangYong Motor is conducting final development work for the domestic first compact mid-size SUV electric vehicle to be launched early next year, along with the partial facelift model of the G4 Rexton and the re-release of the Tivoli Air, the long-body version of the Tivoli, in the second half of this year. The company plans to promptly proceed with feasible management plans, including securing liquidity through attracting new investors.

This content was produced with the assistance of AI translation services.