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SUBJECT : Mahindra Reconfirms Commitment to Ssangyong Motor   [ allforu62 ]   2010.10.13

Indian utility vehicle manufacturer Mahindra & Mahindra reiterated its strong commitment to South Korea’s Ssangyong Motor as its visiting vice-chairman Anand Mahindra said “Our goal is to recreate Ssangyong Motor as a strong brand.”

The vice-chairman who participated in the World’s Knowledge Forum held in Seoul on October 13 told reporters that “We are trying to acquire the carmaker with a long-term vision and we and Ssangyong Motor will go forward toward one common goal.”

His visit captures attention as it is a coincidence of timing for Mahindra, a preferred bidder for a controlling stake in the carmaker, and creditor banks initiate their price negotiations.

“Price negotiations will be concluded smoothly,” said the vice-chairman. “The acquisition process will come to an end between December of this year and January of next year.”

Asked about price differences with creditors, “the issue can be resolved fully during negotiations and it does not account for a major part of our acquisition plan. We already suggested a price much higher than rivals’.” he said. “The Indian car market is more widely open to global competition but Mahindra will be able to be competitive enough to make SUVs in terms of manufacturing costs which are only a sixth of those in advanced countries.”

[Written by Seung-chul Park / edited by Soyoung Chung]

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