SsangYong to produce small SUV

South Korean automaker SsangYong said it plans to invest KR 295.8 billion (US$261.1 million) in the development of a small sport utility vehicle (SUV) with a new engine. Company spokesperson Cha Ki-woong said, “The small crossover utility vehicle will be the first of the four new vehicle models that SsangYong plans to develop by 2016.” Mahindra & Mahindra (M&M), which owns 70% of the South Korean firm, is involved in the development of the compact SUV.
This is the first time that the two companies are collaborating on a project, and the decision to produce a small SUV is in response to growing demand for smaller cars that are fuel-efficient. SsangYong saw sales tumble last year because it did not release any models for the small and fuel-efficient segments. For 2012, the company has set an annual sales target of 123,000 units. (February 29, 2012)