New distributor for SsangYong

Korean manufacturer SsangYong has handed Australian distribution rights for the brand to Sime Darby, the Malaysian multinational that picked up the distribution of Peugeot from Inchcape Automotive in 2001.

The transfer of distribution to Sime Darby from the current franchisee, SsangYong Motors Australia, is expected to take place some time this month. Principals for the current distributor, Russell Burling (New Zealand distributor for the brand) and Vince Barbagallo (SsangYong dealer in Perth), have issued a joint statement welcoming the change.

"We see Sime Darby as the best candidate in the market to take the SsangYong business to the next level and look forward to working with them," the statement reads.

For Sime Darby, the acquisition of the SsangYong brand is an opportunity for expansion in the Australian market.

"In SsangYong we see a strong Pickup and SUV product offering that has significant opportunity for growth," says Sime Darby Motors Division Executive Vice President Lawrence Lee.

"Its established credentials for making solid products in these segments, and the extent to which it does so as its specialty, is something that we intend to capitalise on. Its availability of Pickup and SUV in 2WD or 4WD, with Diesel engines in both manual and automatic transmission is also something quite unique."

SsangYong's history in Australia has been what might be described as chequered. The company's Musso model was introduced to Australia in 1997 and distributed through Mercedes-Benz dealers. Drivetrains for the SUV were supplied by Benz, which also owned a small share in the Korean firm. The Musso was an SUV for Benz in the days before the M-Class, but the vehicle was considered overpriced and resale was poor.

Within a couple of years, the manufacturer had been acquired by Daewoo and the Musso and smaller Korando model were both subsequently sold in Australia through Daewoo dealers. As expected from Daewoo, the SsangYong range was much more sensibly priced, but volumes didn't improve substantially and resales remained poor.

When Daewoo struck diabolical financial difficulties, it was snapped up at a fire-sale price by GM, which divested the SsangYong brand. A management team saved SsangYong, now a free agent once more, and New Zealand distributor Russell Burling re-introduced the brand to Australia with a limited chain of dealers.

Sime Darby's announcement should improve the brand's outlook in this country.