Korean automaker maker Ssangyong Motor Co, which has been in receivership since January, 2009, has several suitors interested in purchasing its struggling operations, including utility vehicle builder Mahindra & Mahindra. Reuters reports that the Indian automaker plans to do its due diligence and study a purchase of the company before committing any resources.
A Mahindra-Ssangyong tie-up makes sense due to the fact that both companies produce a range of utility vehicles, which means that there is the potential for engineering and hardware synergies that could lead to considerable savings. The fact-finding process could take up to six weeks to complete.
Mahindra has been looking to expand its empire to include the U.S. market, but its plan for a 30 mile-per-gallon pickup truck have not yet resulted in a vehicle for sale, though dealerships are known to be going up around the country. The Indian automaker also has several joint agreements with other automakers, including Renault (Dacia Logan) and Reva (electric vehicles).
[Source: Reuters]
A Mahindra-Ssangyong tie-up makes sense due to the fact that both companies produce a range of utility vehicles, which means that there is the potential for engineering and hardware synergies that could lead to considerable savings. The fact-finding process could take up to six weeks to complete.
Mahindra has been looking to expand its empire to include the U.S. market, but its plan for a 30 mile-per-gallon pickup truck have not yet resulted in a vehicle for sale, though dealerships are known to be going up around the country. The Indian automaker also has several joint agreements with other automakers, including Renault (Dacia Logan) and Reva (electric vehicles).
[Source: Reuters]
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