The British Exit from the European Union is Affecting a Korean Automaker

11.01.16 - 2016 SSangyong Rexton

11.01.16 - 2016 SSangyong Rexton

While that may be the strangest headline I’ve ever written, its truth is even stranger. What comes as more of a surprise is the fact that the automaker in question doesn’t have a presence in the US, but soon could have one to give it a larger market to target, but the challenge of entering the US market is an uphill battle for this company that we don’t yet know of.

What has caused this issue? the fact that Great Britain left the European Union has caused the value of the British Pound to be completely unstable and not comparable to the Korean Won. Because of this automaker SSangyong which sells nearly ten percent of its overall inventory in the UK needs to look for a new place to sell their vehicles. Even though they can increase the price to make up for the difference, once the exchange rate is factored in there is nearly no profits for this automaker in the UK. This has the possibility of two large markets in the world becoming serious targets for the automaker these two markets being China and the US.

While the Chinese market seems to be a sure fit with proximity being much closer to South Korea the exports to the Chinese market are minimal at best. Not to mention the fact the Chinese market isn’t crossover heavy. This leave the US as the prime target, which actually should be a match made in heaven because the Ssanyong lineup is full of crossover SUVs, five of them to be exact. This should be perfect in a country that loves the crossover as much as they love sliced bread, but there are some challenges for this company to overcome if they want to sell in the US.

First of all, the name will be difficult for Americans to say. It may become part of an advertising scheme or they could simply use their parent company name, Mahindra, which we’re intimately familiar with. Once you get past the name you have five SUVs to choose from, the Rexton which is a seven seater, the Turismo which is a bit smaller in size, the Korando which is a compact vehicle, and the Tivoli which comes in two sizes, the standard and the XLV to give you a great choice. These five would certainly give us a vehicle in nearly every part of the SUV market to choose from, but these vehicles aren’t exactly turning heads with their looks.

Even though their vehicles aren’t the most attractive there could be a call for them, but Ssanyong will have to find a dealer network that’s willing to work with them in the US and begin a new advertising campaign to offer us these vehicles with. Even if they get past these two hurdles the fact that manual transmission is standard fare in this lineup and only one is gas powered might turn some Americans of the trail of these SUVs.

If somehow Ssanyong found a way to make it into our market there could be some major success for the company. While I mentioned some of the negatives, these are great SUVs that come in at price points that will attract a lot of buyers. You get a lot more SUV for your money with these models, making it much easier for you to enjoy the drive at the right price. Hopefully SSanyong will find their way to our market and maybe some of us will figure out exactly how to properly pronounce that name.

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