SsangYong Motor hopes for a big comeback as KG Mobility

SsangYong Motor Chairman Kwak Jea-sun announces the automaker's name change to KG Mobility during an event hosted by the Korea Automobile Journalists Association Wednesday evening. [YONHAP]

SsangYong Motor is seeking to change its name to KG Mobility, the company's first name change in 35 years, as it aims for a fresh start after a long slump.

“We have decided to change the name to KG Mobility, and SsangYong’s new cars will come out under the name KG,” Kwak Jea-sun, chairman of SsangYong Motor, said during an event hosted by the Korea Automobile Journalists Association Wednesday evening.

“But its history will not change and they will have the same conditions,” Kwak added. "The name, SsangYong Motor, has a fandom, but it also has a painful image.”

The change comes as a KG Mobility-led consortium in October acquired 62 percent of the beleaguered automaker. Kwak also serves as CEO of KG Chemical, the largest shareholder of KG Eco Technology Services (ETS) which holds 100 percent of KG Mobility.

If approved by the shareholders, the change will be effective in March.

SsangYong traces its origins back to Ha Dong-Hwan Motor Workshop, which was established in 1954. Then the name changed to Shinjin Motors in 1967 and Dong-A Motor in 1975.

The name SsangYong Motor was first used in 1998.

SsangYong Motor has had four different owners since then: Daewoo Motors, creditors, China’s state-run Shanghai Automotive Industry and India’s Mahindra & Mahindra. It has been posting operating losses for 23 consecutive quarters despite a number of popular SUVs, like Rexton, Korando and Tivoli.

The company was put under court receivership in April 2021 as Mahindra failed to find new investors amid the pandemic and financial difficulties.

KG consortium's acquisition of SsangYong Motor helped the carmaker exit the court-led, 18-month debt restructuring. SsangYong underwent two previous rounds of court receivership over the past two decades amid a lack of interest from buyers and unfavorable market conditions.

But the automaker has seen a positive reception lately with its new Torres mid-size SUV, the company's first entirely new vehicle in four years.

Around 19,510 Torres orders have been booked since July, which far exceeds its target. It sold 56,363 cars in the domestic market last year.

Torres was introduced in Chile in November, and SsangYong Motor will export it to more Latin American countries next year.

The electric version of Torres, which is called U100 for now, will be released next year fall. SsangYong also plans to release an electric pickup truck in the second half of 2024.

BY SARAH CHEA [chea.sarah@joongang.co.kr]