KG Mobility has been selected as the ‘preferred negotiation partner for a conditional investment contract’ prior to Edison Motors’ announcement in the rehabilitation court (Changwon District Court).
After a decision to initiate corporate rehabilitation procedures was made by the court in January, Edison Motors has been in the process of selecting a ‘preferred negotiation partner for a conditional investment contract.’
KG Mobility conducted preliminary inspections until April 14 following the receipt of letters of intent from prospective investors in March, and submitted a conditional investment acquisition proposal on the 21st. Once confirmed by the internal board of directors, a conditional investment contract will be signed with Edison Motors.
As a specialist in SUVs, KG Mobility plans to utilize its automotive technology capabilities, growth know-how, and experience in successful corporate restructuring through rehabilitation procedures to help grow Edison Motors into a company that contributes to societal advancement.
KG Mobility assesses that Edison Motors, which produces electric buses with over 85% localization rate, possesses not only technological competitiveness but also a sales network, indicating significant potential for recovery through competitive enhancement plans.
Moreover, KG Mobility’s parent company, FUTA Group, which signed a KD contract with Kim Long Motors in March, operates the passenger transportation business alongside automotive sales. FUTA has plans to gradually replace existing buses in the Vietnamese market with electric models, leading to opportunities for KG Mobility to enter the Southeast Asian bus market and the global market together in the future.
KG Mobility has previously signed a development contract for batteries, a core component of electric vehicles, with BYD, a leading global electric vehicle company, and an MOU for technology cooperation for the in-house production of battery packs in 2021. The batteries developed through this collaboration will be installed in the upcoming Torres EVX set to launch in the second half of the year.
A representative from KG Mobility stated, “We expect to create synergies with Edison Motors based on our technological capabilities and competitiveness. After the acquisition, we will work on restoring the sales network, which will help increase sales and improve profitability by enhancing efficiency. We intend to normalize Edison Motors in a timely manner through increased sales volume in the export market as well.”
Lee Sang-jin daedusj@autodiary.kr