KG Mobility
Template:Short description Template:Redirect Template:For Template:Use dmy dates Template:Infobox company
The KG Mobility Corporation (Template:Langx, Template:Literal translation), abbreviated as KGM, is a South Korean automobile manufacturer. It traces its origins back to Dong-A Motor, a manufacturer established in 1954. The company was named SsangYong Motor Company in 1988, following its acquisition in 1986 by the SsangYong Group, a chaebol. Since then, SsangYong Motor has been acquired successively by Daewoo Motors, Chinese manufacturer SAIC Motor, and Indian manufacturer Mahindra & Mahindra. In 2022, the company was acquired by South Korean chaebol KG Group and adopted its present name in March 2023.
The company's main focus is sport utility vehicles (SUVs) and crossover SUVs, and it is transitioning its focus to electric cars. The KGM Commercial manufactures commercial vehicles, including electric buses.
History
Dong-A Motor (1954–1987)
SsangYong originally started out as two separate companies; Ha Dong-hwan Motor Workshop (established in 1954) and Dongbang Motor Co (established in 1962). In mid-1963, the two companies merged into Ha Dong-hwan Motor Co.<ref>Template:Cite web</ref><ref>Template:Cite journal Template:Dead link</ref> (Template:Korean). In 1964, Hadonghwan Motor Company started building jeeps for the US Army as well as trucks and buses. Beginning in 1976, Hadonghwan produced a variety of special purpose vehicles. After changing its name to Dong-A Motor (Template:Korean) in 1977 and taking control of Keohwa in 1984, it was taken over by SsangYong Business Group in 1986.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>
Gallery
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Dong-A DA 30 with Ha Dong-hwan body
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Firetrucks produced by SsangYong and its predecessor, Dong-A Motor
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Ha Dong-hwan bus on the right
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Keohwa (1981–1984)
Template:Main article Keohwa, Ltd. (Template:Korean) was a South Korean assembler of Jeeps under licence, mainly for export markets.<ref name=JAI>Template:Cite web</ref> Its predecessor was the Jeep assembly joint venture of Shinjin Motors and American Motor Corporation (AMC), established in 1974.<ref>Template:Cite web</ref><ref name=Jee>Template:Cite web</ref> It was spun off as an independent company in 1981, after AMC left the venture and retired the permission to use the Jeep trade mark. In 1983, Jeeps from Keohwa started to be named as "Korando".<ref name=Jee/> In 1984, Keohwa was acquired by the predecessor of SsangYong Motor, Dong-A Motor.
SsangYong Motor Company (1986–2023)
After Dong-A Motor was taken over by SsangYong Business Group, Dong-A Motor's name was changed to SsangYong Motor in 1988.<ref name="smotor.com">Template:Cite web</ref> In 1987, it acquired United Kingdom-based specialty car maker Panther Westwinds.<ref name="smotor.com"/>
In 1991, SsangYong started a technology partnership with Daimler-Benz. The deal was for SsangYong to develop a sport utility vehicle (SUV) with Mercedes-Benz technology. This was supposedly to allow SsangYong to gain footholds in new markets without having to build their own infrastructure (utilizing existing Mercedes-Benz networks) while giving Mercedes a competitor in the then-booming SUV market.<ref>Template:Cite web</ref> This resulted in the Musso, which was sold first by Mercedes-Benz and later by SsangYong.<ref>Template:Cite web</ref>
SsangYong further benefited from this alliance, long after Daimler-Benz stopped selling the Musso, producing a badge engineered version of the Mercedes-Benz MB100, the Istana and using Daimler designs in many other models, including the second-generation Korando (engine and transmission), the Rexton (transmission),<ref>Template:Cite web</ref> the Chairman H (chassis and transmission)<ref>Template:Cite web</ref> and the Kyron (transmission).<ref>Template:Cite web</ref>
Takeover by Daewoo Motors and SAIC
In 1997, Daewoo Motors, now GM Korea, bought a controlling stake from the SsangYong Group, only to sell it off again in 2000, because the conglomerate ran into deep financial troubles. In late 2004, the Chinese automobile manufacturer SAIC took a 51% stake of SsangYong Motor Company. In July – August 2006, workers went on strike for 7 weeks to protest SAIC's plans to lay off 554 employees.<ref name=":0">Template:Cite news</ref> The strike cost SsangYong 380 billion Won and negotiations ended with workers accepting a wage freeze.<ref name=":0" />
Template:Wikinews In January 2009, after recording a $75.42 million loss, the company was put into receivership. This may have been due to the global economic crisis and shrinking demand.<ref>Template:Cite web</ref> In response to management's plan to cut 2,600 jobs, a third of the workforce, workers at Ssangyong's main factory stopped work and barricaded themselves inside in protest.<ref name=":1">Template:Cite web</ref> One elderly worker died from a cerebral hemorrhage within the first 12 days.<ref name=":1" /> The strikes grew violent after water, food, electricity, and medicine were withheld from the strikers and police surrounded the building.<ref name=":2">Template:Cite web</ref> Strikers threw Molotov cocktails at police<ref>Template:Cite news</ref> while police used electroshock weapons and allegedly dropped corrosive chemicals on the strikers.<ref name=":2" /> On 14 August 2009, worker strikes finished at the SsangYong factory and production commenced again after 77 days of disruption.<ref>Template:Cite web</ref> Company employees and analysts have also blamed SAIC for stealing technology related to hybrid vehicles from the company and failing to live up to its promise of continued investment.<ref>Template:Cite web Template:Dead link</ref><ref>Template:Cite web</ref> SAIC denied allegations of technology theft by the company's employees.<ref>Template:Cite web</ref> However, SAIC was charged by the South Korean prosecutor's office for violating company regulations and the South Korean law when it ordered and carried out the transfer of SsangYong's proprietary technology developed with South Korean government funding over to SAIC researchers.<ref>Template:Cite web</ref>
In 2010, Daewoo Motor Sales was dropped by General Motors. The long-time dealership partner then signed a deal with the SsangYong Motor Company to supply new vehicles to sell (specifically the Rodius, Chairman W and Chairman H), in return for the injection of Template:Currency ($17.6 million) into the car maker still recovering from bankruptcy. The deal is non-exclusive, meaning SsangYong will also sell vehicles through private dealers.<ref>Template:Cite web</ref>
Takeover by Mahindra Automotive
In April 2010, the company released a statement citing interest of three to four local and foreign companies in acquiring SsangYong Motor Company, resulting in shares rising by 15%.<ref>Template:Cite news</ref> The companies were later revealed to be Mahindra & Mahindra, Ruia Group, SM Aluminum, Seoul Investments and French-owned Renault Samsung Motors of South Korea.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> In August 2010, Mahindra & Mahindra Limited was chosen as the preferred bidder for SsangYong.<ref>Template:Cite web</ref> The acquisition was completed in February 2011<ref name=toi-mmss>Template:Cite news</ref><ref>Template:Cite news Template:Dead linkTemplate:Cbignore</ref> and cost Mahindra US$463.6 million.<ref>Template:Cite web</ref>
In 2015, SsangYong and KB Capital established a joint venture as the financial affiliate of the former, with the name SY Auto Capital. SsangYong had a 51% stake of the venture and KB Capital a 49%.<ref name=KGCapital>Template:Cite web</ref> That year, the company launched the Tivoli, its first car after Mahindra acquisition.<ref>Template:Cite web</ref> Within a year of Tivoli's launch, the company reported its first net profit in 9 years.<ref>Template:Cite web</ref> In 2017, SsangYong sold 106,677 units in domestic sales and 37,008 units in exports, setting a record high in 14 years since 2003, when its annual domestic sales stood at 131,283 units. Out of this, the Tivoli alone contributed over 50,000 units of domestic sales for the company.<ref>Template:Cite web</ref> Mahindra XUV300, which was later launched in 2019 is built on Tivoli's platform, sharing many parts including several metal sheets.
Mahindra also worked with its SsangYong subsidiary to introduce high performance electric vehicles in South Korea for mass-market sales.<ref>Template:Cite web</ref> Mahindra and SsangYong increased their collaboration on engines and electric cars.<ref>Template:Cite web</ref>
On 21 December 2020, SsangYong Motor filed for receivership after Mahindra cut funding to SsangYong due to its outstanding debt.<ref>Template:Cite news</ref> Ssang Yong Motor spokesperson stated that the company owes a total of 315.3 billion won (US$285 million) in overdue debt to financial institutions.<ref>Template:Cite web</ref>
Failed takeover by Edison Motors
In October 2021, it was reported that SsangYong was set to be acquired by electric bus and truck maker Edison Motors (not to be confused with Edison Motors of Canada) which would lead to SsangYong exiting receivership. Edison Motors planned to introduce SsangYong vehicles into the United States, Mexico, and Canada markets by the mid-2020s. Edison Motors also intended to phase-out production and new car sales of fossil fuel-powered SsangYong vehicles by 2030, in favor of producing and selling only electric-powered vehicles by the latter, if acquired.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref> In January 2022, the South Korean courts "approved" Edison Motors' acquisition plan, although the company would be kept in receivership until the transaction were completed.<ref>Template:Cite web</ref> In March 2022, SsangYong said the Edison Motors takeover was cancelled as the latter failed making acquisition payments for that month.<ref>Template:Cite web</ref>
In December 2021, SsangYong signed an agreement with the Chinese BYD Auto to co-develop battery systems for its first electric car (called U100) which would be launched in 2023.<ref>Template:Cite web</ref>
Takeover by the KG Group
In June 2022, the Seoul Bankruptcy Court opted for a consortium (KG Mobility) led by the KG Group as the final bidder to take over SsangYong Motor. The consortium planned to pay 900 billion won ($699.5 million) for SsangYong.<ref>Template:Cite web</ref> In August 2022, South Korea's Free Trade Commission approved KG Group acquisition of a 61% majority stake in SsangYong through the consortium.<ref name=KGtake>Template:Cite web</ref><ref>Template:Cite web</ref> The acquisition payments were completed later that month. In September 2022, the Seoul Bankruptcy Court agreed to SsangYong's receivership exit plan, including issuing new shares in order to pay the creditors.<ref>Template:Cite web</ref> The KG Group was set to start the process to exit SsangYong's receivership in early October and finish the acquisition process on (or before) 14 October, the SsangYong sale deadline. There also were plans to rename SsangYong.<ref name=KGtake/> After delays, the consortium started the receivership exit procedures on 31 October by requesting the receivership termination to the Seoul Bankruptcy Court.<ref>Template:Cite web</ref> The Court approved the receivership exit on 11 November, finalising the consortium's acquisition.<ref>Template:Cite web</ref>
In December 2022, SsangYong's chairman Kwak Jae-sun said it planned to remove the "SsangYong" name entirely in March 2023 by modifying the articles of association. The company was set to be renamed as "KG Mobility", adopting a new branding and using KG as its marque, to avoid the negative perception of the present name,<ref>Template:Cite web</ref> bypassing its "painful image".<ref>Template:Cite web</ref><ref>Template:Cite web</ref>
KG Mobility (2023–present)
The company adopted the name KG Mobility in March 2023.<ref>Template:Cite web</ref> As the company was renamed, its financial affiliate, SY Auto Capital, was also renamed as KG Capital. In May 2023, KG Group's KG Inicis acquired the 49% KG Capital stake hold by KB Capital and 6% of KG Mobility's share, leaving the latter with a 45% and KG Inicis with a 55%.<ref name=KGCapital/>
The company is developing plans to use technology to gain competitivity on various market segments (especially electric) and enter less developed overseas markets with potential growth (such as Africa, Southeast Asia, South America, or the Middle East) to expand its sales base. In 2022, the company signed a knock-down kit (KD) assembly contract with the Saudi National Automotive Manufacturing Company. In January 2023, it signed another KD contract with NGT, a company from the United Arab Emirates. In March 2023, a third with Vietnamese Kim Long Motors.<ref>Template:Cite web</ref>
In March 2023, KG Mobility launched a bid to acquire receivership-bound Edison Motors. In May, it was selected as the preferred bidder.<ref>Template:Cite news</ref> In June, it was reported that SsangYong would be relaunched in Europe under the name KGM, with the cars continuing to wear SsangYong's dragon wing logo on the front. It is thought that the first KGM car in Europe will be a facelifted version of the SsangYong Tivoli, with their range of SUVs being rebranded soon after.<ref>Template:Cite web</ref><ref>Auto Mundial Episode 27 on ITV4 from 5 July 2023</ref><ref>Template:Cite web</ref>
In April 2023, KG Mobility launched KG S&C, a vehicle parts and conversion division.<ref>Template:Cite web</ref>
In November 2023, it was announced that the Korean Intellectual Property Office (KIPO) had rejected the application to register the brand name because it had already been registered in around 30 countries by Cihan Turan. This company is known as a trademark troll. This refers to the registration of brand names without the intention of actually using them, but only in order to exploit the rights and collect the corresponding payments. KG Mobility appealed against this decision and said it would continue to use the KGM name in overseas markets until further notice.<ref>Template:Cite web</ref>
In June 2024, however, The Korea Times reported that KG Mobility was facing difficulties in obtaining the trademark rights for the three-letter abbreviation "KGM".<ref>Template:Cite web</ref> The Turkish Patent and Trademark Office even refused the registration of KGM, because the Turkish government-run General Directorate of Highways, which is written as "Karayolları Genel Müdürlüğü" in Turkish, had been already using the same acronym. The registration of KG Mobility had also been rejected in the country due to Cihan Turan. Even in Korea, the trademark for KGM is also under KIPO’s review, following an objection filed in 2023 by KTM, an Austrian motorcycle manufacturer, which claims consumers are likely to be confused by the two similar acronyms.
In August 2024, KG Mobility said it has established a sales subsidiary in Germany to strengthen its operations in the European market.<ref>Template:Cite web</ref>
In October 2024, KG Mobility announced that it has signed a strategic partnership co-operation agreement with China's Chery Automobile.<ref>Template:Cite web</ref>
Corporate
Ownership
By April 2023, the controlling shareholder of KG Mobility was KG Mobility Holdings,<ref name=KGstock>Template:Cite web</ref> a wholly owned subsidiary of KG ETS (a KG Group affiliate).<ref>Template:Cite web</ref> In August 2023, KG Mobility Holdings was merged into KG ETS, making KG Mobility a direct subsidiary of the latter.<ref>Template:Cite web</ref> KG ETS holds a 58.84% of KG Mobility and it cannot sell its stake to third parties until April 2026.<ref name=KGstock/>
Facilities
Offices
- Head Office – The Head office located in Pyeongtaek, South Korea. R&D Centre, Design Centre, and other departments are located in the Pyeongtaek office
- Seoul Office – Department under Head office is located in Yeoksam-dong, Seoul
Factories
- Pyeongtaek Plant (South Korea) – Main factory. Produces a complete range.
- Changwon Plant (South Korea) – Engine and parts factory.
The present main (assembly) site is located in Pyeongtaek's Chilgoe neighbourhood and was built in 1979. The whole site (including surrounding land) covers Template:Convert and also includes the aforementioned headquarters and research and development buildings. In 2021, the company started the review process to move the factory elsewhere. In September 2023, it said it plans to sell the present site's land to finance the construction of a new factory in the Pyeongtaek city area, which is set to start in 2024. The new factory is set to have capacity to assemble up to 300,000 vehicles per year in a more integrated way (avoiding the production bottlenecks of the present, older style facility). The new factory would be fully operational by 2028.<ref>Template:Cite web</ref>
Leadership
- Ha Dong-hwan (1954–1979)
- Chung Ki-young (1979–1982)
- Kim Dong-ho (1982–1984)
- Jang Doo-seop (1984–1986)
- Choi Byung-hang (1986–1987)
- Son Myung-won (1987–1993 and 1995–1997)
- Kim Suk-Joon (1994–1995)<ref name="brothers">Template:Citation</ref>
- Lee Jong-kyu (1997–1998)
- Park Dong-kyu (1998–1999)
- Choi Gye-yong (1999–2000)
- So Jing-wan (2000–2005)
- Choi Hyung-tak (2005–2009)<ref>https://www.autonews.com/article/20051108/REG/511080708/chinese-owner-replaces-ssangyong-ceo/#:~:text=Gift%20Article,product%20development%2C%22%20Chen%20said.</ref>
- Lee Yoo-il (2009–2015)<ref>https://koreajoongangdaily.joins.com/2015/01/21/industry/Ssangyong-CEO-Lee-to-step-down-after-six-years/2999951.html#:~:text=Lee%20Yoo%2Dil%2C%20CEO%20of%20Ssangyong%20Motors%2C%20said,the%20nation's%20smallest%20automaker%2C%20went%20into%20cour.</ref>
- Choi Johng-sik (2015–2019)<ref>https://www.koreatimes.co.kr/business/companies/20150211/ssangyong-motor-names-new-ceo</ref>
- Byung-tae Yea (2019–2021)<ref>https://www.automotiveworld.com/news-releases/ssangyong-motor-company-appoints-byung-tae-yea-as-new-ceo/#:~:text=SsangYong%20Motor%20Company%20appoints%20Byung%2DTae%20Yea%20as,CEO%20By%20Emma%20Georgiades%20April%204%2C%202019</ref>
- Jeong Yong-won (2022–2024)<ref>https://pulse.mk.co.kr/news/english/10473128#:~:text=KG%20Group%20Chairman%20Kwak%20Jae%2Dsun%20will%20spearhead,Jung%20Yong%2Dwon%2C%20the%20carmaker%20announced%20on%20Thursday.</ref>
- Hwang Ki-young and Park Jang-ho (2024–present)<ref>https://cm.asiae.co.kr/en/article/2024051315251515591</ref>
Automobiles
Vehicle lineup
Production models
| Model | Current generation | Vehicle description | |||||
|---|---|---|---|---|---|---|---|
| Image | Name | Introduction
(Template:Abbr year) |
Model code | Introduction | |||
| SUV/crossover | |||||||
| File:KGM Actyon J120 Royal Copper (5).jpg | Actyon | 2005 | J120 | 2024 | Mid-size Crossover based on the KGM Torres. | ||
| File:Ssangyong Korando (4th generation) IMG 3084.jpg | Korando | 1983 | C300 | 2019 | Compact crossover SUV, Formerly the SsangYong Korando. | ||
| File:KGM Korando e-Motion Auto Zuerich 2023 1X7A1044.jpg | Korando e-Motion | 2019 | Battery electric crossover based on the Korando. | ||||
| File:SsangYong Rexton Y450 front.jpg | Rexton | 2001 | Y400 | 2017 | Mid-size crossover SUV, Formerly the SsangYong Rexton. | ||
| File:KGM Tivoli Auto Zuerich 2023 1X7A1040.jpg | Tivoli | 2015 | X100 | 2015 | Subcompact crossover SUV, Formerly the SsangYong Tivoli. | ||
| File:KGM Tivoli Grand Automesse Ludwigsburg 2024 IMG 1430.jpg | Tivoli XLV | 2016 | Extended version of the Tivoli, Formerly the SsangYong Tivoli XLV. | ||||
| File:SsangYong Torres Automesse Ludwigsburg 2024 IMG 1442.jpg | Torres | 2022 | J100 | 2022 | Mid-size crossover SUV, Formerly the SsangYong Torres. | ||
| File:KG Mobility Torres EVX Automesse Ludwigsburg 2024 IMG 1423.jpg | Torres EVX | U100 | 2023 | Battery electric crossover based on the Torres. | |||
| Pickup truck | |||||||
| File:SsangYong Musso (2018) Facelift Automesse Ludwigsburg 2022 1X7A5963.jpg | Musso Pick-up | 2002 | Q200 | 2018 | Mid-size pickup truck, Formerly the SsangYong Musso Pick-up. | ||
| File:KGM Musso EV Auto Zuerich 2025 DSC 3556.jpg | Musso EV | 2025 | O100 | 2025 | Battery electric Mid-size pickup truck. | ||
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Former SsangYong model lineup
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Explanatory notes
References
External links
- Template:Official website (English)
Template:SsangYong Motor Company Template:SsangYong timeline Template:Navboxes
- Pages with broken file links
- Vehicle manufacturing companies established in 1954
- Car manufacturers of South Korea
- Truck manufacturers of South Korea
- Manufacturing companies based in Seoul
- SAIC Motor
- South Korean brands
- Car brands
- Luxury motor vehicle manufacturers
- South Korean companies established in 1954
- 2011 mergers and acquisitions
- Companies in the KOSPI 200
- Pyeongtaek