Ssangyong Announces its New Vision and Strategy
? Ssangyong unveils new vision to become the “Most Innovative and Respected Korean Automotive Company”
? Automaker sets goals to sell 160,000 vehicles with revenues of four trillion Won by 2013 and 300,000 vehicles posting revenues of seven trillion Won by 2016
? Ssangyong to launch five facelift models by 2013 and four completely new models by 2016
? Ssangyong to enhance business performance through cost re-engineering and harnessing synergy with Mahindra
Ssangyong Motor Co. (President & CEO Lee Yoo-il; www.smotor.com), part of the US$12.5 billion Mahindra Group, held the Ssangyong Motor New Vision Declaration Ceremony 2011 on Sept. 20, 2011 at Yi-Choong Culture Center in Pyeongtaek City.
Chairman Dr. Pawan Goenka and CEO Lee Yoo-il unveiled Ssangyong’s new vision, core values and five year business strategy in the presence of about 3,300 executives and employees,
Ssangyong’s new vision is to become the “Most Innovative and Respected Korean Automotive Company.”
The new vision embodies the company’s effort to drive positive change in the lives of its customers by providing differentiated products and services resulting in high customer satisfaction through innovations in the areas of process, technology, customer value and service.
For achieving its new vision, Ssangyong established its mid- to long-term business goals for 2013 as “Promise 2013”, under which it aims to sell 160,000 vehicles recording revenues of four trillion Won by 2013. The Company also announced “Aspiration 2016,” by which it plans to sell 300,000 vehicles recording revenues of seven trillion Won by 2016.
To accomplish these goals, the company will focus on six strategy pillars:
1. Develop competitive products
2. Increase global market share and sales
3. Attain cost leadership
4. Develop next generation technologies
5. Maximize synergy with the Mahindra group and
6. Strengthen organisational capabilities
To that end, Ssangyong will launch five facelift models by 2013 and four completely new models by 2016. Furthermore, the automaker will develop and launch electric vehicles. This product plan with new more fuel efficient, low CO2 power trains and EVs shall result in the Company fulfilling its responsibility to provide more environment friendly products.
To expand global market share, Ssangyong will cooperate with Mahindra in strengthening its overseas sales network and advance into fast growing emerging markets. To begin with, Ssangyong will commence using Mahindra’s existing network in South Africa by March 2012. With Mahindra’s assistance, Ssangyong will also move to local manufacture of its vehicles in India and Egypt.
Ssangyong will also expand its sales infrastructure in Korea and is affirmatively seeking a way to establish a domestic hire-purchase finance company to be able to provide one-stop financial solution. With these and other marketing and brand initiatives, the Company is targeting a 20 percent market share in participating segments in Korea.
Ssangyong and Mahindra shall co-operate across the value chain, especially in R&D, product development, purchasing and sales to generate economies of scale for mutual benefit that shall significantly enhance Ssangyong’s cost competitiveness. In addition, Ssangyong will implement strategies for targeted reductions in engineering, production and warranty costs using innovation as a key driver.
In order to enable it to achieve its targets and implement identified strategies, Ssangyong shall improve its organisational capabilities by innovative HR practices and enhanced business infrastructure as identified during a comprehensive post merger integration exercise and thus become amongst the most preferred employers in Korea.
According to the Company’s Chairman, Dr. 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, “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, Mr. Kyu-han Kim, declared “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” <END>