South Korean sport utility vehicle maker Ssangyong Motor Co. on Wednesday forecast a 25% rise in sales this year to 4.2 trillion won ($US4.18 billion), aided by exports to China and Europe, according to the Reuters news agency.
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The company reportedly said it aimed to meet the target by working more closely with China’s Shanghai Automotive Industry Corp. (SAIC), which acquired 48.9% of Ssangyong for about $500 million last year.
Ssangyong also planned to spend 400 billion won this year upgrading plants and preparing new models, chief executive Soh Jin-kwan told Reuters, adding that the company was targeting 2005 sales of 170,000 units, also a rise of 25%.
“We plan to raise the export ratio of total sales to more than 30% this year from the current 25%,” Soh reportedly said, adding: “By strengthening cooperation with SAIC and through exports of the new Rodius SUV to western Europe, that’s possible. For an auto maker to compete on the world stage, the export ratio should rise to 50%.”
According to Reuters, the Korean automaker, which builds the popular Rexton SUV and premium Chairman sedan, said in a statement exports would rise more than 53% to 60,000 units this year, including 2,000 to China.
The firm reportedly said it was aiming for a 9.6% stake in the domestic auto market by selling 110,000 vehicles this year at home.
The company would unveil plans for closer cooperation with SAIC around the end of the month, Reuters said.
“We are working closely with SAIC to hammer out a longer term growth strategy for Ssangyong,” Soh reportedly said, adding: “The plans address development of new technology and models, future investment schemes, Ssangyong’s foray into China and globalisation plan.”
SAIC co-chief executive Jiang Zhiwei told Reuters his company would support Ssangyong’s expansion into China and the rest of the world.
Reuters noted that state-run SAIC has said Ssangyong can use its marketing network in China and plans to invest in the Korea company to help it grow.
Ssangyong, which competes with Hyundai and Kia in South Korea, has capacity to make 200,000 vehicles a year and plans to double production by 2007, the report added.
