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Tivoli breaks away from Ssangyongrsquos signature boxy styling
<p><strong>Tivoli breaks away from Ssangyong&rsquo;s signature boxy styling.</strong></p>

Tivoli Key Piece of Ssangyong’s Turnaround Plan

The CUV, launched in January, is off to a solid start in Korea, despite limited availability as production ramps up. Sales accounted for 30% of the automaker&rsquo;s global volume in February.

Ssangyong’s new Tivoli CUV, a critical play in the South Korean automaker’s efforts to rebound from a near-death experience, appears off to a solid start.

Sales of the new model, launched Jan. 13, have reached 5,210, putting the Tivoli about on pace with its goal for the year of 38,500 units, despite limited availability of the vehicle.

That on-target volume is being achieved even though only the 1.6L version of the new CUV is available and overall supply has been restricted as production continues to ramp up. In January, some 8,000 preorders for the Tivoli were on the books.

Ssangyong’s Pyongtaek plant is running two shifts, but it is unclear if some overtime is being added to try to meet initial demand for the new model. A spokesman says only that no weekend work has been scheduled.

Tivoli sales so far equate to about 4% of Ssangyong’s global volume last year, when it delivered 141,071 vehicles. The automaker has not forecast total vehicle sales for 2015, but its Promise 2016 plan targets a record 300,000 units next year.

Clearly, Ssangyong intends for the Tivoli to begin to bridge that volume gap. The model should get a marketing boost in June when a diesel version is added to the Korean lineup. Like the 126-hp eXGi160 gasoline engine available today, the eXDi160 turbodiesel is a new offering, developed in-house at Ssangyong’s engine center in the southeastern coastal city of Changwon.

The diesel produces 115 hp at 3,400 rpm and 230 lb.-ft. (300 Nm) or peak torque from 1,500 to 2,500 rpm. The engine is considered vital for Tivoli to succeed in Europe.

Also on the way is an all-wheel-drive option that will vary torque to each of the two axles depending on traction.

For the past four years since being acquired (70%) by India’s Mahindra & Mahindra, a bloodied Ssangyong, left for dead by former stakeholder Shanghai Automotive Industry Corp., has been busy engineering a revival plan centered on the Tivoli.

The new model appears to be doing its job. In January, the Tivoli accounted for one-third of Ssangyong’s domestic sales of 6,817 vehicles and 28% of its global volume of 10,321. Last month, it accounted for 43% of the automaker’s 6,527 deliveries in Korea and 30% of worldwide sales of 9,724.

Export sales are expected to get a boost when the automaker begins shipping the Tivoli to Europe, slated to happen as early as May.

Ssangyong vehicles are sold in about 600 European dealerships in 29 countries. In the U.K., where the automaker racked up sales of just 1,700 vehicles in 2014, the Tivoli is seen helping to double volume to 3,500 units. The CUV goes on the market there in June in both front- and all-wheel-drive configurations.

Ssangyong already has begun initial marketing efforts in France, where dozens of photos and articles on the new model are posted to its website there. In Italy, consumers are being invited to register in order to “stay updated on the launch,” and in Germany distributors are preparing for a second-quarter rollout.

Sources in India say right-hand-drive Tivolis will begin arriving there in June for sales through M&M. It is noted that, at 165.2 ins. (4,195 mm), the Tivoli is 7.9 ins. (200 mm) too long to qualify for India’s small-car excise duty benefits.

M&M did not share in the Tivoli’s 350 billion won ($311 million) development costs without planning on spin-off vehicles under its own badge. Analysts expect the M&M vehicles to be produced in India.

Ssangyong also has its sights set on exporting the Tivoli to China, but a spokesman says plans have not been firmed up. The automaker markets its vehicles in China through a cooperative agreement with the Pangda Automobile.

Tivoli to the Rescue

Without the Tivoli, Ssangyong’s outlook would be dismal.

Much bloodletting has occurred since 2004, when the shipwrecked company was acquired by SAIC. The Chinese automaker failed to make needed investments and withdrew from the business to allow Ssangyong to go bankrupt in 2009, after which it was acquired by M&M.

The Korean automaker seems to have scored a resounding victory with the new Tivoli, which boasts car-like styling that steps far away from the signature boxy designs of its other vehicles.

Development took some 3 1/2 years, performed principally by Ssangyong but with some help from M&M.

At its Jan. 13 unveiling in Korea, M&M officials confirmed Ssangyong would be “our vehicle into the U.S. market.” A U.S. introduction is not considered imminent, but officials say some marketing studies have been completed and more work is in progress. M&M earlier planned to enter the U.S. with the Mahindra brand, but that fell apart over emissions-certification issues and a fallout with its potential distributor.

The Korean-market Tivoli boasts an array of advanced features, but is priced at just 16.3 million-23.7 million won ($14,426-$21,000). Standard features include 3-mode adjustable steering control, electronic stability system, seven airbags, 7-in. (17.8-cm) touchscreen display that can mirror images from smartphones and instrument lighting that allows the driver to choose from five different colors. Among available options are a heated steering wheel and heated split-folding rear seats.

Reports suggest a long-wheelbase, 7-seat version of the CUV, acknowledged in the works by Ssangyong executives, will hit the Korean market by year’s end. A spokesman confirms a longer model will be released this year but says it is unclear whether it will have a third-row seat.

A plug-in hybrid version also is rumored for rollout later this year. Shown in concept form at the Geneva Auto Show earlier this month, the Tivoli EVR is powered by the 1.6L gasoline engine mated to an electric motor and 25-kWh battery.

Range was given as 81 miles (130 km) in electric mode. The concept features carbon fiber body panels to offset additional weight from the battery and electric drive components.

One thing the Ssangyong executives are not commenting on is a story being told about selection of the Tivoli name. Sales literature says the vehicle is named after the scenic Tivoli area of Italy.

Others are saying it was chosen because when Tivoli is spelled backwards, it translates to “I love it.”

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