KIA is spearheading of a very ambitious strategy

October 19, 2011 12:00 AM
KIA is spearheading of a very ambitious strategy

The recent arrest of the President of Hyundai Motor, Chung Mong-koo, a case of corruption in Korea, and judicial troubles extend to his son Chung Eui - sun, boss of the Kia Motors division, begin in any way the determination of the group in Europe. "The continuous life." "The strategy is unchanged, and maintained investment", explains Jean-Charles Lievens, senior Vice President of Kia Motors Europe, convinced that the CEO of the number one automotive Korean "will be released soon", noting that since the Korea of Southern political alternation, end of 2002, all major industry such as LG and Samsung groups are regularly attacked for cases of occult or contortions tax financing.

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While, in Europe, only importer of cars with its two brands to the rapid growth, the group will become a major industry in the region, with a double investment for Kia, Slovakia, and for Hyundai, Czech Republic, of a total of nearly EUR 2 billion. Allowing it to be cumulative sales of 1.3 million vehicles on the old Continent to the horizon of 2010, is a growth of 78 percent today, according to projections of PricewaterhouseCoopers. While the next plant of Kia started out his first models of pre-production for an opening in December, Hyundai, located 50 km only, should be subject to an official in mid-May in Korea signature, with less than luster than expected.

KIA is spearheading of a very ambitious strategy. At Zilina, in an enclave area located 200 kilometres from Bratislava and undermined by unemployment, the manufacturer had no difficulty to find the first 1,200 employees, to be 3,000 in three years (the number of posts created will exceed the 10,000 indirect jobs), while the authorities have conducted a new highway. When the site reaches its cruising speed, to 300,000 units per year, it will be able to assemble on the same string new medium sedan, provisionally called ED (European Dream), the small 4 4 Sportage for the moment come Korea, scheduled for July 2007, then a third vehicle which is not yet announced (end of 2008 or early 2009).

ED sedan already presented as a concept-car will have three variants, 5-door coupe and break, should represent half of the total, or 150,000 units per year. Nearby engines unit of assembly lines will also work to term for Hyundai's Czech Republic plant, while it will send reverse its gearboxes to his cousin Kia Slovakia. With its ultramodern robots, this quality control at all stages and bright design, "Zilina will be the reference, in terms of organization, for the future Kia plant in the United States (Georgia) and Hyundai in Czech Republic," says Jean-Charles Lievens. It should also be the most productive unit in Europe, of Nissan in the UK, with an annual ratio of 100 cars per employee. All for the workers wages of approximately 3 to 4 euros per hour.

After sales almost 290.000 units in Europe last year ( 48 growth in 2004), Kia think meet the bar of the 500,000 as of 2009, then of the 600,000 by 2012, of a total world 2.3 or 2.5 million.