Torres Drives KG-Backed 'Ssangyong Motor'... Revival 'Ignition'

Ssangyong Motor held a new car launch event on the 5th at Nest Hotel in Yeongjongdo, Incheon, unveiling the actual model of the new mid-size sport utility vehicle (SUV) "Torres." The Torres is equipped with a 1.5-liter turbo gasoline engine producing a maximum torque of 28.5 kg.m and a maximum output of 170 horsepower, paired with a 3rd generation Aisin 6-speed automatic transmission. It also received certification as a third-class low-emission vehicle, allowing benefits such as a 50-60% reduction in congestion charges and fees for public and airport parking lots. Photo by Kim Hyunmin, Yeongjongdo kimhyun81@

[Asia Economy Reporter Yoo Hyun-seok] SsangYong Motor is gearing up for normalization with strong sales of its sport utility vehicle (SUV) Torres and the completion of acquisition by KG Group. However, facility investments and the launch of new models are necessary to achieve true normalization.

According to the completed car industry on the 12th, SsangYong Motor sold a total of 69,136 units including domestic and export sales from January to last month. Domestically, it has achieved better results compared to Renault Korea Motors and GM Korea. SsangYong recorded cumulative domestic sales of 41,200 units until last month this year. Renault Korea and GM Korea recorded 34,437 units and 25,258 units, respectively.

Including exports, SsangYong lags behind Renault Korea and GM Korea, but the situation is changing since the launch of Torres. Torres sales have rapidly increased, recording 33 units in June, 2,752 units in July, and 3,637 units in August. Since pre-orders began on June 13, over 60,600 units have been contracted until last month.

Thanks to Torres, SsangYong sold a total of 10,752 units in July and 10,675 units in August combining domestic and export sales, surpassing 10,000 units per month for the first time since December 2020. In particular, the sales gap with GM Korea and Renault Korea is narrowing due to strong sales. In June, just before Torres was fully launched, SsangYong sold 8,009 units. At that time, GM Korea sold 26,688 units and Renault Korea 12,011 units, showing a large gap. However, with SsangYong exceeding 10,000 units last month, the gap is closing.

Especially, SsangYong’s management normalization is approaching. SsangYong Motor’s rehabilitation plan was recently approved at a creditors’ meeting, effectively confirming KG Group’s acquisition of SsangYong. According to the rehabilitation plan, SsangYong will carry out a paid-in capital increase and bond repayment this month and then apply for the termination of rehabilitation procedures. Subsequently, it plans to apply to the court for the end of rehabilitation procedures in early October. This will end the court-managed system about two years after entering rehabilitation procedures in December 2020.

However, many steps remain for SsangYong’s normalization. First, the launch of new models and improvements to various facilities are necessary. Professor Kim Pil-su of Daelim University explained, “Currently, SsangYong’s future growth engines are very weak. Continuous launch of new vehicles is needed, and since the Pyeongtaek plant is outdated, improvements there along with electric vehicle development are necessary.”

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