Vinaxuki to assemble Ssangyong‘s Kyron cars

Ssangyong Motor has clinched a deal to export 15,500 Kyrons to Vietnam over the next five years, as it embarks on a revival plan and looks to attract investors.

The cars for Vietnam will be in the form of complete knock-down (CKD) units, to be assembled by Vietnam's Xuankien Vinaxuki Motor. Export of the CKD kits will start immediately.

Ssangyong is pushing forward with court-approved revival plans. This month has seen the appointment of a consortium as arranger for the sale of a controlling stake in the company.

Led by Samjung KPMG Advisory Inc., the group includes Macquarie Securities and South Korean law firm Shin and Kim. Preliminary bids could be in by as early as June this year.

Share dealings in SsangYong were temporarily halted from December 23 to February 11 to allow it to undertake the two rounds of capital reduction as part of its turnaround plan.

Last month SsangYong achieved sales of 4,421 vehicles - a considerable boost over the 1,644 units recorded in January, 2009. Domestic sales in South Korea were up 75.4% at 2,015 vehicles, while exports more than quadrupled with 2,406 units.

Paul Williams of UK Ssangyong distributor Koelliker UK, commented: "Since the South Korean court's approval of Sanyong's revival plans in December, there has been steady and encouraging progress in all areas of the business.

"These are relatively low numbers of course, but they are going in the right direction. Sangyong Motor is placing considerable emphasis on fast product improvement, marketing and the development of new models including diesel hybrids, and our dealers and customers will begin to see real progress this year."