[THE INVESTOR] Ssangyong Motor announced on Oct. 11 that it will establish a joint venture with China’s Shaanxi Automobile Group in the country.
The Chinese automotive company signed a letter of intent on establishing a JV, and the two companies will conduct a feasibility study, the automaker owned by India’s Mahindra and Mahindra said.
If the two companies go ahead with the plans, it will be Ssangyong Motor’s first production base outside South Korea.
Ssangyong Motor CEO Choi Johng-sik (left) and Shaanxi Automobile Group President Yuan Hongming
In reviewing the plans, the automaker will also consider establishing a cluster with South Korean suppliers in Shaanxi province in northwestern China.
“A plant in China is essential for increasing sales and improving competitiveness in the rapidly growing market,” Ssangyong Motor CEO Choi Johng-sik said.
“The joint venture, which will be Ssangyong Motor’s first overseas production base, will be the engine for Ssangyong’s drive to become a global SUV maker.”
By Choi He-suk (email@example.com