SsangYong Delaying U.S. Launch

South Korean automaker SsangYong Motor has paused plans to launch its crossover-laden lineup in the U.S. market—which had been forecast for 2020.

“We are still developing our U.S. entry strategy, without a firm entry date,” said Dan Rim, SsangYong senior executive director of export. “This is a strategic decision to make and requires further study rather than making actions. We’ll wait and see.”

“There’s the economic environment, the political environment, policy, and consumer trends,” Rim said.

SsangYong’s lineup would seem to be a match for crossover-crazed Americans. The Rexton, Tivoli, Korando, and Turismo range from compact to midsized; all feature rugged, slab-sided styling favored by SUV buyers.

“The U.S. sales have plateaued, but SUVs are still strong, so we would be a good fit,” Rim said.

At this year’s Geneva Motor Show, SsangYong unveiled a redesigned Korando, a midsize five-seat SUV that borrows heavily from the VW and Nissan exterior design motifs.

Whenever the U.S. launch happens, SsangYong’s Musso midsize pickup likely would not make the journey, due to a long-standing 25 percent U.S. tariff on imported pickup trucks.

In the interim, SsangYong will concentrate on the European, South American, and Korean domestic markets. “But the U.S. is the final frontier,” Rim noted.

Rim was cautious not to call out rising trade frictions between President Donald Trump and several Asian nations, noting that the U.S. and South Korea still maintain a free-trade agreement. The possibility of a global economic downturn also has SsangYong cautious about the expense of entering the massive U.S. market on the precipice of a downward sales trend. Experts state that it takes more than $1 billion to launch a new auto brand here.

Waiting to enter the U.S. market might place SsangYong amidst a slew of Chinese automakers also looking to come to America. Is Rim concerned that SsangYong might be considered Chinese by accident?

“We take high pride in our Korean manufacturing. Our European advertising specifically mentions that our cars are made in Korea,” Rim said. “With the history of Korean OEMs in the U.S., it’s good for SsangYong to be associated with the other Korean brands.”

While SsangYong vehicles are manufactured in South Korea, Wall Street technically might not consider SsangYong a Korean brand. The automaker has changed hands several times since the original SsangYong Motor was rescued from dire financial straits by Daewoo in 1997. When Daewoo similarly swooned, a controlling interest in SsangYong was sold to Chinese automaker SAIC in 2000. That lasted until 2011, when Indian conglomerate Mahindra & Mahindra bought SsangYong.

SsangYong is a small fish among the global players. The automaker sold a total of 143,309 vehicles in 2018—of which 109,140 units were in the Korean domestic market.

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