Troubled SsangYong Motor poised to sell itself to South Korean EV startup

Debt-laden automaker seeks to escape slump under Edison Motors

SsangYong Motor's Korando on display at the 2019 Seoul Motor Show. The South Korean automaker's output fell 20% in 2020. © Reuters

KOTARO HOSOKAWA, Nikkei staff writer

October 21, 2021 00:38 JST

SEOUL -- Debt-laden South Korean automaker SsangYong Motor named a group led by a six-year-old electric vehicle startup as its preferred bidder on Wednesday, as it seeks to make a fresh start under a new owner.

SsangYong said it chose the Edison Motors-led consortium, which includes a South Korean investment fund, based on such factors as the offer price, its members' fundraising strength and future plans. The deal is estimated to be worth about $260 million, according to industry sources.