SsangYong changes name and is now called KGM
SsangYong was renamed KGM on July 1 last year, and this name change marks the beginning of a new phase. We see the details of the changes that the Korean brand is going through.
Since July 1st last year, SsangYong Spain has officially accepted new corporate identity called KGM Spain. Recall that in the summer of 2022, the Free Trade Commission of South Korea approved the acquisition of a 61% controlling stake in SsangYong by KG Group. This is not the first or last car brand that will have to make such changes. The last to do so was Jaguar Land Rover in mid-2023, when it was renamed JLR.
In Spain, after 30 years of existence, SsangYong changing its name is not an easy task. (Although the brand was born in 1954, it arrived in our country only in 1995). Customers get used to the name, which they associate with certain products (Tivoli and Tivoli Grand, Korando, Musso, Torres and Rexton) and, for example, day after day call the KGM Korando what was previously called the SsangYong Korando. complex. . “But we have been brave and have done this process without hot cloths,” assures Carlos Olaso, CEO of KGM in Spain. “Under the KGM brand,” adds Olaso, “we aim to continue offering the highest quality products at competitive prices and always through a dealer network.”
Another “leg” of KG Group
After SsangYong Motor was acquired worldwide by South Korean business conglomerate KG Group, SsangYong Motor became become part of the mobility area of KG Mobilitywhich adopts the abbreviation KGM. They are the result of the combination of KG Group and the letter M, which stands for mobility, a name that perfectly matches the motto “Made in Korea”.
This area of mobility KG Mobility one of the many “legs” of the companyas the KG Group comprises a large number of companies that operate in such diverse sectors as the steel industry (KG Steel), chemicals (KG Chemical), leisure, finance (KG Zeroin), education (KG Edoune), technology, logistics and media.
The company’s rescue plan was not limited to just a capital injection, but also included new product development. An example of this strategy was the launch of the Torres model. This approach, combining financial strengthening with diversification and an improved commercial offer, was crucial to the company’s revitalization and ensure its long-term sustainability and growth.
This is how KG Group was born
In 1985, Kwak Jae-sung, the current president of KG Group, founded Seil, a company with various power plants, with other investors. But it wasn’t until 2003 that Kwak sold his stake, using the proceeds to acquire a bankrupt company that originally made fertilizers and called KG Chemical. It was at this point that KG Group was born.
In the following years, the Group expanded through an aggressive merger and acquisition strategy. Each of the companies in the KG Group plays a decisive role in the conglomerate’s operations.
KGM celebrates its 70th anniversary
Today and already with a new name KGMcompany South Korea’s oldest car manufacturer, celebrating its 70th anniversary in 2024. Over the past 15 years, more than 1.7 million cars have been sold worldwide.
Since its establishment in 1954, KGM specializes in SUVsIn the 1980s, the company began developing four-wheel drive vehicles, introducing models such as the Musso and Korando. After 2000, this was reinforced by the introduction of models such as the Rexton, Korando, Actyon Sports, Rodius, Tivoli and XLV.
At the moment, KGM exports its vehicles to 126 countries. through more than 1,500 distributors and continues to expand in the markets of Central America, Eastern Europe, India and China. At the end of last year, its sales reached 120,000 units, and the company expects this figure to increase by 166% to reach 320,000 units in 2026.
Results of 2024 in Spain
In our country, KGM Spain closed first half of 2024 with a total of 3,433 units sold, growth 147%. According to Alberto Herrero, Commercial Director of KGM in Spain, “We are experiencing a moment of absolute rebirth. Growing in absolute terms when no one else is doing it is an exceptional achievement, a success that is possible thanks to the hard work and dedication of our employees.” our commercial and dealer network. At the moment, In Spain, the brand has a network of 56 dealerships, 71 points of sale and 84 workshops. This commercial network initiated the name change, and most of the concessions now bear the initials KGM.
KGM Spain plans to end 2024 with 6,000 units (0.6% market share) and an expected growth of 186% compared to the previous year.