SsangYong: Geneva Motor Show 2011

GENEVA – March 3, 2011:

Good morning, ladies and gentlemen, distinguished journalists.

It is with great pleasure that I welcome all of you to the 81st 2011 Geneva International Motor Show.

Thank you very much for making the time to be here with us today at the SsangYong Motor Company press conference.

Today, SsangYong Motors is standing on a stronger, more invigorated platform as we have moved through the rehabilitation process faster than expected and are working towards the successful completion of the acquisition process with Mahindra & Mahindra.

The rehabilitation plan which started in February 2009 focused on increased productivity and on restoring consumer’s confidence and by doing so, to increase the sales and revenues.

With joint efforts, SsangYong Motors managed to bring the production process to a higher efficiency level, reducing the production time per unit by 57% between early 2009 and end 2010.

In 2010, SsangYong Motors more than doubled its sales compared to the previous year, achieving 132% growth, especially due to improved exports to South America and Russia.

Despite the ongoing rehabilitation process, an entirely new state of the art production line in the Pyungtaek plant has been inaugurated to build the all new Korando. This production line started mass production in August last year and has a total production capacity of 100,000 units on an annual basis.

This new production line as well as the optimized utilization of the existing production lines, will allow us to achieve another 50% growth in sales in 2011, bringing us to the highest sales level since 2007.

Moreover, even during the restructuring process, our focus was always centered on customer value and so our Product Development team dedicated themselves towards the preparation of the launch of several new products and power trains and as a result, we are now well positioned for fast-paced growth in addition to an aggressive move forward as a true global player.

The first product which results from these continued R&D efforts is the recently launched Korando, SsangYong’s first monoque type SUV and highlighted as an environment-friendly compact SUV incorporating distinct European characteristics in design and styling. What makes this model so unique is our close collaboration with the renowned stylist Giorgetto Giugiaro to ensure we were developing a premium product for the market and one that represented the spirit of SsangYong.

The Korando is perfectly positioned in the still growing mid-size SUV segment in Europe, with an excellent engine power / fuel efficiency ratio.

The Korando range will be reinforced by a 2.0L petrol engine and a 2.0 Green Diesel engine, which will further improve the CO2 emission by early 2012, to respond to the demands by the European market especially as we view Europe as a critical area for us in terms of sales and product development.

Finally, we are pleased to announce the official launch of the 6 speed automatic transmission version of Korando here at the Geneva Motor Show, which allows us to respond to the growing demand of automatic versions in this segment in Europe.

With the SUT1, our follow up model to Actyon Sports, we have tried to reflect the essential characteristics of a traditional pick-up but have paid close attention to detail, which has resulted in a more contemporary feel and one that will define the branding focus of the company. We expect to introduce the SUT1 across Europe and other markets in early 2012.

In parallel, our R&D team developed several new engines and derivatives which will be presented to you in a few minutes. These developments will support our ambitious long term product plan which will ensure further continuous growth.

SsangYong Motor Company is excited about its future because of the progress made thus far in addition to our collaborative partnership with Mahindra & Mahindra.

We are setting our sights on becoming a global leader in the SUV market and with continued focus on R&D, further investments into product development and enhanced business competitiveness, we are primed for success.

Our future is bright and I am personally very excited about the journey ahead.

Once again we appreciate your valuable time here in Geneva and as always, thank you for the continued interest and support in SsangYong Motor Company.