KG Mobility Chairman Kwak Jea-sun (C, blue jacket) looks around the production lines of Edison Motors in Hamyang, South Gyeongsang Province, on July 5, 2023, in this photo provided by KG Mobility.
SEOUL, July 7 (Korea Bizwire) — KG Mobility, formerly SsangYong Motor Co., said Friday it will transform Edison Motors Co. into an environment-friendly commercial carmaker after it became the final bidder for the debt-laden electric bus maker.
KG Mobility plans to expand Edison Motors’ large electric bus-focused lineup to include small and medium-sized buses and trucks, while increasing exports to secure profitability, the company said in a statement.
KG Mobility also plans to change the name of Edison Motors to KGM Commercial when Edison Motors completes a court-led debt rescheduling program later this year, it said.
Edison Motors is widely expected to complete the court receivership in September.
On Monday, KG Mobility was selected as the final bidder for Edison Motors, which has been under the court-led restructuring process since January.
This undated file photo, provided by KG Mobility, shows the all-electric Torres EVX.
In April, a bankruptcy court in the southeastern city of Changwon selected KG Mobility as a preferred bidder to acquire Edison Motors.
KG Mobility submitted a letter of intent to acquire Edison Motors in March, conducted preliminary due diligence early in April and submitted an investment proposal to the bankruptcy court in Changwon, which is in charge of the debt restructuring of Edison Motors.
KG Mobility signed a “conditional” deal with Edison Motors to acquire the electric bus maker in April.
The court proceeded with the auction in the form of a stalking horse bid, in which the preliminary bidder, KG Mobility, suggests its price for Edison ahead of the auction and other bidders submit their prices in the auction.
If a bidder had suggested a higher price, KG Mobility would have had to decide whether to take over Edison at the other bidder’s price or not. But there were no other bidders in the auction.
Edison Motors tried to acquire SsangYong Motor early last year but failed to make a full payment for the debt-laden carmaker, which was under court receivership, by the March 25 deadline.
KG Mobility’s lineup consists of the Tivoli, Korando, Rexton, Rexton Sports and Torres SUVs. It will launch the Torres EVX, which can travel around 500 kilometers on a single charge, in the domestic market in the second half.
(Yonhap)
