Mahindra group Chairman Anand Mahindra reiterated here on Tuesday that the turnaround at SsangYong Motor was still not complete with many challenges still ahead. M&M had acquired the beleaguered Korean automaker for nearly $470 million in 2011.

Mahindra made this point in the backdrop of protests from a section of workers who were laid off in 2009 and are seeking to be re-employed in the company. “I am aware of the problems going on and am deeply concerned about people who lost their jobs. I come from a company whose culture is to care and trust for its people,” Mahindra said at the launch of the Tivoli compact SUV here on Tuesday.

He added that M&M does not believe in a culture of confrontation but one of communication, trust and transparency. The idea is to empower and trust the management of the company it has invested in. In the case of SsangYong, Mahindra said it was CEO, Yoo-il Lee, who was the turnaround architect and it was his untiring efforts that had given the company a chance for survival.

“Today, about 4,800 employees have survived thanks to Lee. SsangYong has a chance for survival and it is a chance we cannot lose. As M&M’s Chairman, my priority is to ensure this and protect the jobs of these employees and 100,000 suppliers,” he added.

According to Mahindra, it would be irresponsible to take short-term decisions based on short-term pressures that could jeopardise thousands of jobs. One of the ways to face these challenges and work on for a turnaround was through exciting products like the Tivoli.

“We are categorical about sharing prosperity but to do this, we need to create it. If the Tivoli is successful, the turnaround will happen and I assure you that whenever the time comes for fresh recruits, our top priority would be to look at those who lost their jobs in 2009,” Mahindra said.

Tivoli pricing

The Tivoli is SsangYong’s first offering since it was acquired by M&M four years ago. Its prices range from $15,000 to $21,500 for its four petrol-powered versions. The diesel option will debut in July. SsangYong has targeted sales of 100,000 units annually, of which 60,000 units will be exported to China and Europe with North America expected to follow suit. The project involved an investment of $320 million and, going forward, SsangYong, will pump in nearly $920 million over the next three years.

Lee said the company had seen remarkable growth over the last four years. There was a greater sense of confidence now in regaining the SUV leader spot where the Tivoli would be the first step of this journey. “This will be done with the commitment of SsangYong and the confidence of M&M. Tivoli will rewrite out history of hardship and rebuild our reputation as the SUV master,” he added.

According to Mahindra, Korea was the beacon of hope in a fragile global economy. He reiterated that the SsangYong buyout was not merely a portfolio investment but done with a vision. “The success of Korea will make the success of SsangYong inevitable. It is destined to go global and I am confident it will happen,” Mahindra said.

M&M, according to him, believed in the future and was here for the long-term. “We are not quitters and temporary obstacles will not affect our faith in SsangYong. Our mission is to ensure the wellbeing of workers and enable SsangYong regain its past glory and plant its flag around the world,” he added.

The US is one of the key markets for the future and Mahindra said SsangYong as a flagbearer makes sense as Korea has established itself as a brand for SUVs. “We believe in the Korean economy and its innovative abilities,” he added. Some of M&M’s tractors in the US are assembled by Tonyang Moolsan Co and going forward, companies like Mahindra Finance and Tech Mahindra will explore opportunities in Korea.

(The writer is in Seoul on the invitation of Mahindra & Mahindra.)