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M&M draws up 5-point plan to revive SsangYong

06 Sep 2010 Evaluate

Mahindra & Mahindra has drawn up a five-point turnaround formula for SsaangYong Motor which will ensure that the Korean automaker is back on track once the acquisition formalities are over.

1.     Introduce strong product pipeline. It had suffered a bit largely since it did not get the investment needed for this purpose.

2.     To rebuild the SsangYong brand which was much stronger than what it is at present. It is not difficult for us to bring it back on track.

3.     M&M's next step would be to address the issues of skills and human resources since some key employees quit SsangYong when things got difficult and the future looked uncertain. Attracting people back to SsangYong could be done with the right focus and direction.

4.     The issue of financial stability will be in place as M&M formally gets into the driver's seat.

5.     Finally, the most important task going forward would be to ensure synergies with M&M. This will encompass a host of areas including the international network, bringing products to India, development of vehicles jointly on a common platform, global/joint sourcing and so on.

There will also be a lot of joint sourcing. There are plans under way to localise some of the SsangYong products at M&M's Chakan plant near Pune where the benefits of localisation will translate into a competitive price tag and grow M&M's share in the SUV market.crackcrack

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