KG Mobility, until recently SsangYong Motor, turns a profit

Industry

KG Mobility, until recently SsangYong Motor, turns a profit

Published: 02 May. 2023, 18:10

KG Mobility Chairman Kwak Jea-sun speaks during a press event held at Kintex, Gyeonggi, in March. [KIM JONG-HO]

KG Mobility is finally making money, again.

The Korean automaker, previously known as SsangYong Motor, reported a net profit of 16.5 billion won ($12 million) in the first quarter compared to a 31.6 billion won of loss in the same period last year.

Operating profit was 9.4 billion won during the January-to-March period from a 31 billion won loss last year.

It's the first time in 25 quarters the company reported net profit and operating profit at the same time.

Revenues soared 52 percent to 1 trillion won in the first three months of the year, an all-time quarterly high.

KG Mobility's EVX, the electric version of its Torres mid-size SUV. [KG MOBILITY]

The turnaround was largely driven by the Torres SUV, a completely new model released in July.

KG Mobility sold a total of 35,113 vehicles in the first quarter, up 51 percent and a nine-year record for a first quarter.

Domestically, "8,904 sold, and of them, 6,595 were Torres SUVs," KG Mobility said in Tuesday's release. "That's the highest monthly selling performance by a single model in our history."

"The result is meaningful as we rebranded ourselves to KG Mobility and set a fresh start," it added.

In October, KG Mobility-led consortium acquired 62 percent of the beleaguered automaker, helping the carmaker exit a court-led, 18-month debt restructuring.

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

Trading of KG Mobility shares was resumed last Friday, after two years and four months.

KG Mobility on Tuesday also announced that it signed a conditional investment deal with Edison Motors, an electric bus maker that has been under a court-led debt rescheduling program since January.

Edison tried to acquire SsangYong Motor early last year but failed to make a full payment for the debt-laden carmaker by the March 25 deadline.

The court plans to pick the final bidder for Edison Motors through a stalking horse bid, in which preliminary bidder, KG Mobility, suggests its price for Edison ahead of an auction and other bidders submit their prices in the auction.

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