- Knockdown production of Spectra to begin under license in 2004
- Initial production of 1,000 cars per year rising to 120,000 by 2007
SEOUL 14 October 2003 ? Kia Motors has signed an agreement with Russian auto manufacturer Izhmash-Auto to commence knockdown production of the Kia Spectra four-door saloon from November 2004.
Under the terms of the deal, Izhmash-Auto will assemble 1,000 cars in 2004 and 40,000 in 2005 at its existing plant in Izhevsk. By 2007, total production of the Spectra will reach 120,000 units per year.
The deal calls for Kia to provide technical training to Izhmash-Auto’s line-workers and engineers and to provide assistance in upgrading the company’s facilities. Izhmash-Auto will also purchase production equipment from Kia for the Spectra’s engine and transmission.
Yong-Mo Ahn, director of Kia Motors knockdown operation, said, “The deal with Izhmash-Auto is the latest development in a highly successful knockdown program that saw Kia produce its one-millionth knockdown vehicle earlier this year.”
Overseas assembly operations play an important role in Kia’s business, he adds. “The knockdown program increases our penetration in key local markets and paves the way for full scale overseas manufacturing in the future.”
The 1.6 litre Spectra is available in a four and five door version. Kia Motors has exported almost 120,000 of the cars since 2000. The current Spectra will be phased out of production in Korea next year to make way for a new C-segment car, the Cerato.
While the Spectra has always been a top seller in the United States, sales of the Spectra in Russia currently number only a few hundred a year. Kia plans to ship 800 of the cars to Russia in order to increase awareness of and demand for the Spectra in order to support production.
The agreement with Izhmash-Auto does not affect Kia’s relationship with Avtotor, which currently assembles the Sportage at a production line in Kaliningrad. The line has a capacity of 10,000 units.
Kia Motors Corporation (www.kiamotors.com) is one of the world's fastest growing automobile companies. As a part of the Hyundai-Kia Automotive Group, Kia aims to be a top five global automaker by 2010. Kia's 15 manufacturing and assembly operations in 12 countries make more than a million vehicles a year that are sold and serviced through a network of distributors and dealers covering 190 countries. Founded in 1944 Kia is Korea's oldest manufacturer of automobiles. Kia today has 30,000 employees with annual revenues of $12 billion. It is the major sponsor of the Australian Tennis Open and the international sponsor of the Davis Cup for the Euro/Africa zone.