Ssangyong Motor Company, the fourth largest South Korean automobile manufacturer, recently unveiled its new vision to become the “Most Innovative and Respected Korean Automotive Company”. Ssangyong , part of the US$12.5 billion Mahindra Group, organised the Ssangyong Motor New Vision Declaration Ceremony 2011 on September 20, 2011 at Yi-Choong Culture Centre in Pyeongtaek City.
Heading towards its mission, Ssangyong has drawn out its mid-term to long-term business goals for 2013 named as “Promise 2013”, under which the auto maker will target to sell 1,60,000 vehicles and in turn, make revenues of four trillion by 2013. The Company also announced “Aspiration 2016”, wherein it further aims at selling-off 3,00,000 vehicles to register revenues of seven trillion by 2016.
According to the vision, Ssangyong will make the best possible efforts in order to launch five facelift models by 2013 and four completely fresh models by 2016.
The plans to improve business performance by making use of techniques like cost re-engineering and harnessing synergy with Mahindra were also a part of the new vision shared by the company.
Chairman Pawan Goenka and Chief Executive Officer Lee Yoo-il announced Ssangyong’s new vision, core values and five year business strategy amidst 3,300 executives and employees.
The new vision supports the company’s attempt to bring about a positive and advantageous change in the lives of its customers by offering varieties in its products and services. As a result, the level of customer satisfaction would tend to increase through innovations and newness in the areas of process, technology, customer value and service.
To accomplish all the targets that have been set within the vision, the company will give stress on six strategy pillars namely, development of competitive products, increase in global market share and sales , attaining cost leadership, development of next generation technologies, maximizing synergy with the Mahindra group and strengthening the organisational capabilities.
Functioning on the lines of these six strategies, the auto maker will manufacture and launch electric vehicles. The product plan emphasises on performing more efficiently while dealing with fuel, producing low CO2 power trains and electric vehicles. The plans are believed to ensure that the Company fulfils its responsibility to provide more environment friendly products by all means.
To bring about an expansion in its global market share, Ssangyong will coordinate with Mahindra to strengthen its sales network in foreign countries and leave a powerful impact on fast growing emerging markets. To start with the plan, Ssangyong would use Mahindra’s existing network in South Africa by March 2012. With Mahindra’s support, Ssangyong also mulls upon moving to locally manufacture its vehicles in India and Egypt.
Ssangyong also plans to increase the area of its infrastructure in Korea and is desperately searching for a way to establish a domestic hire-purchase finance company to provide one-stop financial solution. With these and other marketing and brand initiatives, the Company aims to attain a 20 percent market share in participating segments in Korea.
Ssangyong and Mahindra would also work closely across the value chain, especially in research and development, product development, purchasing and sales to give rise to economies of scale for mutual benefits. This shall effectively enhance Ssangyong’s cost competitiveness. In addition, Ssangyong will chalk out strategies in order to target reductions in engineering, production and warranty costs, using innovation as the main tool.
According to the Company’s Chairman, Pawan Goenka, “Today we have taken a giant step in the march towards reclaiming Ssangyong’s rightful place as a key player in the global automotive community.”
The CEO of Ssangyong Motor, Lee Yoo-il, stated that “The goal we have set may be challenging, but given the tenacity and determination of the Ssangyong team, I am sure we will achieve it”.
The Ssangyong labour Union Leader, Kyu-han Kim confirmed that “The New Vision and strategy will motivate employees to focus on customers and innovatively strengthen internal capabilities. The union will make ceaseless efforts towards new challenges based on a win-win culture.”
