South Korean-based carmaker SsangYong has outlined an ambitious expansion strategy based on higher exports and new models.
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Speaking at a presentation of the Rodius MPV to journalists in London, SsangYong creative director Ken Greenley said that SsanyYong is planning to add further models to the existing line-up, including a five-seat pick-up and a small SUV (Land Rover Freelander-sized).
Greenley also maintained, referring to the striking design of the Rodius, that SsangYong vehicles offer customers a ‘visually engaging experience and vehicles with distinct personality’ contrasting with the ‘blandness’ of many other carmakers’ designs.
For 2005 SsangYong is aiming for global sales of 170,000 vehicles, including 60,000 exports – half of them to Europe. The company, controlled by Shanghai-based SAIC which has a 48.9% equity stake, will also assemble its first vehicles in China this year from knocked-down kits and has also announced plans to set up CKD assembly operations in Russia and Iran.
SsangYong is planning to establish a production facility in China that will make its planned small SUV, which is expected to reach export markets in the first quarter of 2006.
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By GlobalDataSsangYong is aiming for full year global sales of 60,000 units for the Rodius with a 50:50 domestic/export split.
The Rodius shares a platform with SsangYong’s luxury saloon car, the Chairman. The shared platform has been developed from a Mercedes-Benz E-class platform and the historical Mercedes influence continues on the Rodius in-line five-cylinder 2.7-litre diesel engine, the block for which is made by Mercedes in South Africa. The 5-speed automatic t-tronic gearbox is ‘off the shelf’ from Mercedes.
A petrol-engined Rodius is expected to be added later this year along with a four-wheel drive option.
Aside from the distinctive (some may say outlandish) appearance of the Rodius, its vast dimensions mark it out from many other MPVs in Europe. At over 5.1 metres in length, the Rodius is configured as an eleven-seater in the Korean market where that seating capacity means it qualifies for significant tax breaks. However, in most European markets it will be available as a seven-seater only.
“In Korea, the 11-seat capacity fits societal needs – Koreans like to move around in big social and family groups,” said Ken Greenley. “We expect the Chinese market to be similarly suited to the 11-seat configuration,” he added.
The UK importer of SsangYong vehicles, SYUK, expects to sell around 400 units of the Rodius this year but is expanding its dealer network. SYUK managing director Bob Barris said: “Last year we sold 950 cars from 45 dealers, but over the next 18 months we expect to be selling over 3,000 vehicles from 75 dealers.”
Mitsui recently took a 20% stake in SYUK.
The Rodius will also be very competitively priced. It starts at £18,999 list in Britain, undercutting rivals such as the Chrysler Grand Voyager by some £6,000.
