Yoo Il Lee, a former senior executive with Hyundai Motor, came out of retirement three years ago to run SsangYong Motor, having been appointed by a bankruptcy court. The now profitable firm has ambitious plans, Glenn Brooks hears.
Could you define what the SsangYong brand stands for?
Go deeper with GlobalData
SsangYong stands for ‘double dragon’; the Chinese double dragon. But only really in China is this well known. The name and the symbol came from the man who was the founder of this company 60 years ago, but now we are SsangYong Motor. Not linked to any of the other companies in what was once a big group. Now, we are owned by Mahindra, but we are Korean. We make good value vehicles.
Are you satisfied with the progress that has been made since SsangYong Motor (SYMC) left bankruptcy three years ago?
I am satisfied. But not fully satisfied. We have had growth every year since 2011. Last year we sold 145,000 vehicles and had our highest ever overseas sales. This year I would like to see another 10 percent (YoY growth). 2013 was our stepping stone.
Where do you see that sales rise coming from?
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataFrom Korando, mostly. In Korea, and also in overseas markets, especially European markets. Europe is a strategic market for us.
Is that why SsangYong chose to unveil its latest concept at the Geneva motor show?
XLV concept is very important. You will see us launch a model like this in 2015 and Europe will be a region where we hope to succeed.
Will the X100 project, the production version of this concept, be sold as a seven-seater?
The concept has seven seats but we will not sell such a model in Europe.
How much spare capacity do you have at [SsangYong’s only plant] Pyongtaek to build the X100, your B-SUV?
Now, we are 100,000 [units per annum] below capacity. With this new model, we should reach our capacity – we should reach 250,000 – by the end of 2015.
The X100 will be front-wheel drive and all-wheel drive, like the larger Korando. So will it come down the same line?
No. There is a new line.
Can you see SsangYong going smaller, into the A segment?
There is no profit there. No, not into A segment.
Many of your larger 4x4s are quite old. Are you developing replacements with Mahindra – sharing a new ladder frame architecture perhaps?
I cannot say. But SsangYong will be an SUV-only brand.
So that means the end of the Chairman W limousine and Turismo.
There are no plans, in the near future, to replace these models.
You stated at the New Delhi show in January that the company’s name will be changed. Why is that, and what will it be changed to?
We are still discussing this topic and we are not rushing the decision. SsangYong does not have a positive image in Korea and this is because of the bankruptcy; not just SsangYong Motor went bankrupt but many companies in the group. So we will have to change the name to something better, but something which suggests our Korean heritage. Now, the name is not always accepted in certain markets as it sounds Chinese. The US is somewhere that we intend to be in the future, so we also need the best name there too.
You mentioned China. Can you imagine the company returning as a manufacturer?
We would not return there with SAIC [a former JV was dissolved after the relationship broke down]. If we ever went back to China as a manufacturer it would be with a different partner. Now, we are exporting two models from Korea. We have a good relationship with Pang Da, our agent. New Actyon has just been launched there.
Can you really sell enough vehicles in China solely as an importer?
We launched New Korando in 2013, and now we have New Actyon as well, so we would like to see sales of 15,000 units in 2014. Chinese customers think of SsangYong as a good brand. CBU [vehicle] foreign brands are seen as good brands.
How is progress on your Promise 2016 plan?
Our challenge is to reach 300,000 sales worldwide in 2016, so this is very ambitious. But it is our goal, and we are on track. We will work hard with Mahindra to bring down costs and to work together – you already know we have a new small diesel engine which we have developed together for X100. And sales must be strong in all regions and we plan to enter new markets such as the US.
Where will what is today called SsangYong Motor be in 2020? On its way to being a rival for Jeep or Land Rover?
(Grinning) We hope so.
