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KG Mobility and Edison Motors logos (Screen captures from each company's website) |
KG Mobility said Monday it will look to strengthen its commercial vehicle portfolio after being picked as the final candidate to acquire Edison Motors.
With approval from the local court in Changwon, South Gyeongsang Province, of KG Mobility as the final takeover candidate, Edison Motors can complete the corporate rehabilitation process once it submits a debt recovery plan and acquires an agreement from creditors.
KG Mobility said it plans to transform Edison Motors into a firm that can contribute to society by applying its experiences and capabilities in automobile development and corporate reconstruction.
"We will expand the product lineup to (include) small to midsized trucks and buses to overcome the current lineup limited to large electric buses," said KG Mobility. "We will (transform) Edison Motors into a fully commercial vehicle company by strengthening cooperation in the sectors of research and development and purchasing sources, improving profitability through increased efficiency and bolstering sales through global market expansion."
KG Group, a chemical and steel company, acquired a 61.86 percent stake in SsangYong Motor to become its largest shareholder after the Seoul Bankruptcy Court approved the carmaker’s corporate rehabilitation plan in August last year. SsangYong Motor was eventually renamed KG Mobility under the new owner in March.
KG Mobility sold almost 39,000 vehicles across the globe in the first half of this year, up 36.5 percent on year. The automaker specializes in producing sports utility vehicles, namely Rexton, Tivoli and Torres models.
