Ssangyong GB has brought discussions about a potential takeover of Mitsubishi UK to a close.
CarDealerMagazine.co.uk has cited a senior source who said that talks broke down after there were ‘substantial’ differences in the price wanted by both parties for Colt Car Company – Mitsubishi’s UK importer.
The failure in discussions will likely mean that Mitsubishi’s occupation in the UK will be relegated to a parts business from September next year, coinciding with the believed halt of new car sales.
Official statements had confirmed the talks between the two.
The senior SsangYong source told CarDealerMagazine.co.uk this morning: “The talks have broken down – it’s not happening. We couldn’t get close. We made an offer, they made a counter offer and it was clear we were worlds apart.”
It is believed that Ssangyong UK has been interested in the Colt Car Company as a way of rapidly upscaling its dealer network across the country. However, the talks are understood to have failed because Mitsubishi had ‘unrealistic expectations’ of the value of the remainder of its business in the UK.
“We have already taken on 10 Mitsubishi dealers and are in talks with 20 more,’ added the source.
“The Mitsubishi network is falling apart, some have gone to Suzuki, others to MG and Hyundai. We’re confident we’ll get a lot of them across anyway.”
In an official statement, SsangYong has admitted that it was disappointed that the talks had proved fruitless, but that the firm was continuing towards establishing a ‘robust future’.
The lack of a takeover will cast doubt over the future of the Colt Car Company and its workforce. It’s reported that a number of redundancies have already taken place, while more could be possible in the future.