Ssangyong Resurgence
Ssangyong Motor President Choi Johng-sik said, “We are aiming to sell 150,000 units this year, and expecting to easily achieve the sales target after finishing the first quarter if this trend continues.”
He said at the Seoul Motor Show on April 2, “We have orders coming in for twice the demand forecast in the development stage. Since the Tivoli has been well receiving in the market after the launch in January, the company will be able to be normalized faster than expected.” The company is seeing good results thanks to the Tivoli.
Ssangyong Motor’s sales increased by 25.7 percent to 21,107 units in the first quarter in the domestic market, from 16,796 units a year earlier. The Tivoli is playing a leading role in regaining the famous SUV brand name established through the Musso and the Korando. The Tivoli sold 2,312 units in January, 2,898 units in February, and 2,827 units last month, continuing the popularity.
He said, “The Tivoli is a global strategic model focusing on the European market. The sales of the Tivoli will be determined according to the reaction of the European market. We are planning to manage the production line focusing on the product expansion of the Tivoli.”
Regarding the change of the company name, he said, “We expect that the share of the export market will grow in the future, with 100,000 units in the domestic market and 150,000 units in the global market. It is hard for foreign consumers to pronounce our company name, Ssangyong, and they are aware our visual identity. Since it will take about US$100 million, it will take some time.”
In regard to the reinstatement of laid-off workers, he said, “Even though our company recorded deficits the year before last, we rehabilitated all employees who took unpaid time off. The reinstatement problem is soluble in the future when sales increase and the company becomes normalized. Also, we are trying to address the problem as soon as possible.”
Ssangyong Motor is on target to produce 250,000 units annually and 450,000 units in the long term. Choi said, “We are considering local production in the long term. Also, we are trying to come up with the measures to produce locally, coping with the increase in tax rates in the emerging markets, including Turkey and Brazil.”
Then, he added, “Since the emerging market situation, including BRICs, is difficult, the company should actively sell complete vehicles, focusing on the countries that signed FTA agreements, and in more stable markets such as Europe and the U.S.”
Regarding the XAV concept car, he said, “We are planning to decide whether or not to mass produce the product after watching consumer response. If Ssangyong Motor starts exporting to the U.S. in the future, it will be the mass production version of the product.”
Ssangyong Motor is planning to release the Tivoli diesel version in June and the long wheel base version next year.