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Mahindra & Mahindra has completed all formalities related to the acquisition of a majority stake in SsangYong Motor Company.
Dr Pawan Goenka, President, Automotive and Farm Equipment Sectors, said the new CEO would be Mr Yoo-ilq Lee while M&M's Mr Dilip Sundaram would be the new CFO.
A synergy council comprising senior management from both companies will be established to focus on procurement, new car development and business strategy for global markets.
Strategic plans such as the India project which involves launching the Rexton and Korando-C in India have already been kicked off. Also, talks are under way on opportunities for joint product and technology development and synergy in global operations.
The company is also considering the possibility of Mahindra Finance setting up operations in Korea to enhance SsangYong vehicle sales.
M&M's five point agenda for the company includes strengthening the product pipeline, harnessing synergies between the partners, investing in the brand, building human resources and focusing on financial stability.
From SsangYong's side, its business plan this year entails a 70 per cent investment increase in product development, as compared to last year, at over 200 billion Won (nearly Rs 750 crore). In addition, over 40 billion Won (around Rs 150 crore) will be earmarked for brand building in Korea (a 60 per cent increase over 2010) and an increase in overseas brand investment by over four times, in 2011
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