New Cars and Investments... 'Le Ssangche' Back at the Starting Line

Renault Korea Engages in Capital Increase with Geely Group
Ssangyong Motor Reveals Exterior Image of Torres
GM Korea Renovates Changwon Plant

[Asia Economy Reporter Yoo Hyun-seok] Renault Korea Motors, Ssangyong Motor, and Korea GM, collectively known as the 'Reu-ssang-swe' domestic automakers, are actively undergoing restructuring efforts to rebound. They are making every effort to overcome sluggish sales by preparing new vehicle launches, factory renovations, and equity investments.

According to the automotive industry on the 13th, Ssangyong Motor revealed the exterior images of its new vehicle, Torres, and officially began pre-orders. Torres is an SUV model released by Ssangyong Motor after four years and is a critical model for the company's survival, scheduled for official launch next month.

Meanwhile, the resale process is also nearing completion. The public bidding for Ssangyong Motor, which closed on the 9th, saw participation from the Kwanglim Consortium affiliated with the Ssangbangwool Group. Ssangyong Motor is conducting the resale through a 'Stalking Horse' method, which involves signing a conditional investment contract with a prospective buyer and confirming the acquirer through public bidding. Previously, the KG Consortium was selected as the prospective buyer in the bidding for the stalking horse contract. Ssangyong Motor plans to receive acquisition proposals, including acquisition amounts, from companies expressing acquisition intentions by the 24th.

Renault Korea is currently working on a paid-in capital increase with China's Geely Group. Geely Automobile Holdings, under the Geely Group, is expected to secure a 34.02% stake, and once the paid-in capital increase is completed, Renault Korea is anticipated to secure several hundred billion won in funds.

Renault Korea plans to invest most of these funds in new vehicle development. The company aims to launch the XM3 hybrid model in the second half of this year and release a new eco-friendly vehicle in 2024. The vehicle to be launched in 2024 will be an eco-friendly hybrid using the Volvo platform under the Geely Group. CEO Stephan Deblaise recently referred to this as the 'Aurora Project' during a press conference marking his 100 days in office.

Korea GM is also undergoing internal strengthening. Roberto Rempel, president of GM Technical Center Korea (GMTCK), has been appointed as the new president of Korea GM. Additionally, the renovation of the Changwon plant has been completed. Through this, the Changwon plant has been transformed from a factory specializing in small cars to one capable of producing six different models. Productivity has nearly doubled from 32 to 60 units per hour. The industry estimates that about 1 trillion won has been invested in this alone. Korea GM plans to produce crossover utility vehicles (CUVs) at this plant starting next year.

New vehicles continue to be introduced. This month, Chevrolet launched the new Equinox, completing a full lineup of SUVs ranging from small, mid-size, large, to extra-large. Furthermore, by 2025, GM plans to release 10 electric vehicle models under its brand in Korea.

These three automakers have recorded poor performance in recent years. According to the provisional total automotive industry table released last month by the Korea Automobile Manufacturers Association (KAMA), from January to May this year, the total production volume of Hyundai Motor & Kia, Korea GM, Ssangyong Motor, Renault Korea, and Tata Daewoo Commercial Vehicle was 1,450,689 units. Among these, Hyundai Motor & Kia accounted for 1,248,613 units, representing 86.07% of the total domestic production. The combined production volume of Renault Korea, Ssangyong Motor, and Korea GM was 198,480 units, accounting for only 13.68%.

The industry emphasizes that for these companies to sustain growth, they must continuously develop new vehicles and enhance product quality, maintaining continuity to present high-quality vehicles to consumers. Professor Kim Pil-su of Daelim University's Department of Automotive Studies explained, "Domestic consumers are already among the most demanding in the world," adding, "For the three automakers to revive, they must not only launch new vehicles but also consistently release other models and improve product quality, maintaining continuous efforts."

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