Kia Will Achieve this Year's Export Target of 500,000 units by all Means
- Chairman Chung Mong-Koo presides over meeting of heads of Kia's overseas operations
- Kia management decides to step up efforts to improve profitability and to adopt a more
aggressive marketing strategy
The heads of Kia Motors' eight overseas divisions met with top executives on Feb. 9 and
made a commitment to achieve the annual export goal of 500,000 units by all means.
Chairman Chung Mong-Koo presided over the meeting which included Vice Chairman
Chung Mong-Gyu, Kia President Kim Soo-Joong in a review of corporate export strategy
with planning and coordination manager Lee Kye-Ahn and regional heads.
The chief executives and aides reviewed this year's export plans and discussed measures
to address the needs of the company's overseas dealers, after receiving briefings from the
regional heads on the current operational status of Kia's eight regional headquarters as well
as on the results of their local marketing activities. Kia's eight overseas divisions consist
of North America, Central/South America, Eastern Europe, the CIS, the Middle East, Africa,
Asia/Pacific and China.
Kia reorganized its overseas operations last year into eight regional headquarters covering
the major markets in order to facilitate a more aggressive advance into 170 countries, while
at the same time encouraging more effective sales tactics under the authority of the regional heads.
Under the previous export promotion system in which Seoul headquarters controlled most
of the marketing activities, Kia was unable to meet the needs of its local dealers promptly and
adequately. However, the new regional headquarters-based export promotion system is expected
to contribute to dramatic export growth in that the regional sales arms will be able to conduct more
efficient marketing activities locally while providing more practical support and rapid response to the
company's local dealers, thus generating more export orders.
In order to realize its annual export target of 500,000 units this year, Kia will:
First, launch on a large scale an expanded line of new products.
By the end of this year, Kia is planning to launch in overseas markets its sensational multi-purpose
minivan "Carnival," the true passenger jeep "Retona," as well as the "RS," another new minivan which
is now in the final stage of development and which is scheduled to be on the market within the first
half of this year.
In the meantime, Kia management is planning to be more receptive to the requests of all regional
headquarters during the course of new product development. Furthermore, it will transfer technologies
for low-volume export models such as the Ceres, Topic and others, to local manufacturers.
Second, company management will step up efforts to improve business profitability.
In an effort to achieve this objective, Kia management will encourage the heads of regional headquarters
to establish their own profit and loss management system, while at the same time authorizing them to
adopt a more flexible price control system.