Ssangyong Korando holds line

Ssangyong is battling back from a near-death experience in Korea, but more than half of Ssangyong's local deliveries are now being done by the new-look Korando SUV.

It is the company's first new model in more than three years and has a $27,990 driveaway starting price. It will be followed next year by a totally revised Actyon sports pickup that is expected to lift acceptance of the Korean brand in one of the toughest but fastest-growing showroom classes, thanks to accelerating backing from the company's new owners in India.

Mahindra & Mahindra took control of Ssangyong late last year following bankruptcy protection proceedings in Korea and has injected extra cash and product-sharing plans with its existing models in India.

"Yes, we've been through some difficult times over the past couple of years. But it was all sorted in March and we have the potential for growth," says Jeff Barber, general manager of Ssangyong Australia. "Korando is going quite well. It's progressing month-on-month in sales terms, and we've had good feedback. It's only been in the market for a couple of months but it's building."

Barber says people are drawn to the Korando for a number of reasons, from the value pricetag - claimed to undercut its nearest direct rival by more than $5500 - to a turbodiesel engine and styling by the Italian team at Giugiaro.

The motor makes 129kW/360Nm and, in typical SUV fashion, can be hooked to a front-drive price leader or an all- wheel drive hero car, with both manual and automatic gearboxes. Barber says the Korando is crucial to Ssangyong's future in Australia.

"We've got to get volume. We've still got a long way to go but it gives us the potential to tap into a broader market. One in three vehicles bought in Australia are what we sell, either utes and SUVs," he says. He admits Ssangyong is pressured on both sides by cheaper Chinese rivals and benchmark vehicles from Japan, but believes the company has the right stuff to succeed in Australia.

"They build very, very good vehicles. We get them to showrooms at a very affordable price," Barber says. "I think all Korean brands sit between the Chinese and the Japanese. The quality of what's coming from Korea is now on par with what's coming from Japan."

Barber says he will learn more about the Mahindra & Mahindra plan next month at the Frankfurt Motor Show, although he is not expecting anything new from Ssangyong. "It's a good marriage of two large automotive manufacturers with potential. Over the next short while we should hear more about what that marriage will bring," he says.

"The research and development that goes into a new vehicle does take quite some time. I'm expecting joint decisions on which ones they produce. The next new model we get is the new Actyon sports ute, that will be launched in Australia in late February or early March next year. While it's a facelift it is very substantial, and all the panels have been changed except for the cabin itself. It's a totally new vehicle to look at, and it has a new engine and a new transmission."