SsangYong to expand, GMAC to provide finance

A spokesperson for GMAC said the deal (of undisclosed length) was another step in expanding the customer base of the company, which currently provides finance for Vauxhall, one of the biggest brands in the UK. While Vauxhall recorded the best part of a quarter-million new car registrations in 2011 despite the 4.4% drop in the UK market, SsangYong sold 436 new cars in the last two years.

Korean manufacturer SsangYong predicts at
least a tenfold increase in annual sales this year and has chosen
Ally Financial subsidiary GMAC UK as preferred wholesale and retail
finance provider.

A spokesperson for GMAC said the deal (of
undisclosed length) was “another step in expanding the customer
base” of the company, which currently provides finance for
Vauxhall, one of the biggest brands in the UK.

While Vauxhall recorded the best part of a
quarter-million
new car registrations in 2011 despite the 4.4% drop in the UK
market, SsangYong sold 436 new cars in the last two years.

SsangYong are forecasting sales of 2,000 –
2,500 units in 2012, with 1,600 of those expected to be the Korando
crossover, with the LE model being offered at 4.5% APR finance
(£259pm, 60 months, £3,744.78 deposit) and five years free
servicing.

GMAC said the agreement “provides an
opportunity to grow revenue” but refused to speculate by how
much.

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Other brands provided finance by GMAC
experienced a tough 2011 with Chevrolet dropping 8.44% in new car
sales and 0.02% in market share, compared to 2010, and new sales of
Saab GB,
placed in administration last year, declining 29.84%, losing
0.08% in market share along the way.

By comparison, SsangYong is a younger brand in
the UK market, having only traded under its current name since
1987, and has recently increased its presence in the country with
three new franchised outlets.

Sites in Wolverhampton, Rustington and
Strabane which
opened around the turn of the year have taken its network of
official dealers to 54, all of which will be contacted by GMAC “to
ensure maximum exposure”.

The push follows a 70% acquisition of the
company by Indian engineering conglomerate Mahindra & Mahindra
and the July 2011 sale of UK importing rights for the marque by
Bassadone Automotive Group from Koelliker UK.

Under Koelliker, Siemens Motor Contracts provided finance to
businesses for SsangYong cars while Bank of Scotland provided
finance for consumers.

richard.brown@vrlfinancialnews.com