The failure in acquiring Land Rover has not spared M&M to leave any void and the time has now come for exploring new ventures. One such attempt is to negotiate with Korea’s Ssangyong Motor Co, which is on the sailing nail. However, the information is negated by both the companies as the M&M’s President for Automotive claimed that there is no such proposal. Similar comment came from the managerial official of Ssangyaong. Since January 2009, Ssangyong is in the blues and has been searching for right investors to retrieve its loss to the tune of $75.42 million.
The company is since on the Rehabilitation Plan, which was upheld by the South Korean court. The court had to intervene as the proposal was opposed by the Chinese company SAIC which has a stake of 11.5%. Ssangyong is waiting for the court verdict in this regard to go ahead with M&A process, said director of KPMG Advisory. However, the company is willing to receive any investment proposal from M&M, he added, as one among the bidders. Ssangyong has not yet received any written proposal for this investment from M&M.
Ssangyong’s range of sports cars include Rexton II, New Kryon, Actyon Sports, Rodius and the sedan Chairman W. in addition there are commercial cars to its credit. Even if M&M intends to enter into a business deal with Ssangyong it will be for Rexton, said the then executive director of M&M. a confusing statement came from the Chief Operating Officer of M&M that there is no such proposal to enter into Ssangyong project. The constraint regarding the investment in Ssangyong is furthered by the concept of militant union prevailing in the company. Based on this concept Tata Motors gave up its attempt ten years ago. M&M’s clear picture in the Ssangyong would come to light as in the case of its interest in Sonalika Tractors and Reva electric vehicles.