Post by bgluckman on Sept 23, 2004 21:13:40 GMT -5
European sales slump? What European sales slump?
From AutoNews:
From AutoNews:
Kia predicts 50% more sales in Europe in 2005
Reuters / September 23, 2004
PARIS -- Kia Motors Corp. said on Thursday it expected to raise already robust European sales by another 50 percent next year by introducing a full range of passenger car models.
"We will be in all segments, including eventually in the premium area," said Jean-Charles Lievens, vice president of Kia Motors Europe, which unveiled the all-new Sportage compact sport utility vehicle at the Paris Motor Show on Thursday.
Until a few years ago, Kia sold mostly commercial vehicles in Europe.
"We still haven't started the fleet business, which makes up a large portion of European sales, but once we do, our sales will gain big momentum," he told Reuters in an interview.
Kia, 37 percent owned by Hyundai Motor Co., is Europe's fastest growing brand supported by the popularity of models such as the Picanto and Cerato compact cars designed especially for the European market.
Lievens said Kia expected a sales jump of 40 percent this year in Europe and aimed for a further 50 percent jump in 2005 to 300,000 units for a market share of 2 percent.
To increase sales, Lievens said Kia would need to raise its retail capacity by half, adding dealerships throughout the region.
"We still have a lot to do in the area of dealership expansion."
While local stalwarts such as DaimlerChrysler AG and Volkswagen AG have struggled with profit levels, Lievens said Kia's profits have followed sales higher, although he declined to disclose profits or margins in the region.
A weak Korean won against the euro has helped, but Lievens said Kia was also putting in place a strategy to hedge against unfavorable swings in exchange rates by producing cars at a planned manufacturing plant in Slovakia.
"When the Slovakia plant comes on line (by late 2006), we will produce 40 percent of our European sales locally," he said. "This will ensure a balanced strategy."
Reuters / September 23, 2004
PARIS -- Kia Motors Corp. said on Thursday it expected to raise already robust European sales by another 50 percent next year by introducing a full range of passenger car models.
"We will be in all segments, including eventually in the premium area," said Jean-Charles Lievens, vice president of Kia Motors Europe, which unveiled the all-new Sportage compact sport utility vehicle at the Paris Motor Show on Thursday.
Until a few years ago, Kia sold mostly commercial vehicles in Europe.
"We still haven't started the fleet business, which makes up a large portion of European sales, but once we do, our sales will gain big momentum," he told Reuters in an interview.
Kia, 37 percent owned by Hyundai Motor Co., is Europe's fastest growing brand supported by the popularity of models such as the Picanto and Cerato compact cars designed especially for the European market.
Lievens said Kia expected a sales jump of 40 percent this year in Europe and aimed for a further 50 percent jump in 2005 to 300,000 units for a market share of 2 percent.
To increase sales, Lievens said Kia would need to raise its retail capacity by half, adding dealerships throughout the region.
"We still have a lot to do in the area of dealership expansion."
While local stalwarts such as DaimlerChrysler AG and Volkswagen AG have struggled with profit levels, Lievens said Kia's profits have followed sales higher, although he declined to disclose profits or margins in the region.
A weak Korean won against the euro has helped, but Lievens said Kia was also putting in place a strategy to hedge against unfavorable swings in exchange rates by producing cars at a planned manufacturing plant in Slovakia.
"When the Slovakia plant comes on line (by late 2006), we will produce 40 percent of our European sales locally," he said. "This will ensure a balanced strategy."
