Ssangyong to raise Torres SUV output for turnaround

South Korea’s Ssangyong Motor Co. will ramp up the production of its new sport utility vehicle to meet strong demand, hoping the Torres will help save the beleaguered automaker.

Ssangyong decided to raise the output of the mid-sized SUV unveiled on Tuesday by about 73% to 26,000 units from its initial plan as its pre-orders topped 30,000 units, a near double its sales target of 16,800 units for this year.

The SUV-focused carmaker is scheduled to increase shifts to two from the current one from July 11 at its plant in Pyeongtaek, 70 kilometers south of Seoul.

Ssangyong aims to export the Torres to overseas markets such as Chile later this year.

The Torres is equipped with a 1.5-liter turbocharged gasoline engine with a maximum torque of 28.6 kilogram-meters and 170 horsepower. The trunk capacity stands at 703 liters (186 gallons), enough for four golf club bags, four Boston bags and a travel carrier while expanding to 1,662 liters with the second-row seats folded.

Its sticker price starts from 27.4 million won ($20,972) in South Korea, relatively lower than competitors' similar models.

Last month, a consortium led by the chemicals-to-steel conglomerate KG Group has been named Ssangyong’s new owner.

The KG consortium, which includes two Seoul-based private equity firms, Cactus Private Equity and Pavilion Private Equity, is known to have offered about 900 billion won, including operating capital of 600 billion won, to acquire the troubled automaker.

In 2011, Indian automaker Mahindra and Mahindra Ltd. took over Ssangyong by purchasing a 75% stake at 523 billion won from China-based SAIC Motor Corp.

However, Mahindra held back on further investment in Ssangyong as it faced its own declining sales in India. It put Ssangyong up for sale in 2020, virtually handing over management rights to the Seoul Bankruptcy Court.

Write to Han-Shin Park at phs@hankyung.com
Jongwoo Cheon edited this article.