Chung Mong-koo, son of late Hyundai founder Chung Ju-yung, prioritized normalizing the management of Kia Motors when he took office as chairman of Hyundai Motor Group in 1998.
Under a full-fledged effort by the Hyundai chief and vice chairman Chung Eui-sun, Kia was upgraded to a key subsidiary of the automotive group after it was acquired by Hyundai in the wake of the 1997 financial crisis.
Since 2005, Kia has focused on the European market and has identified design as its “core future growth engine” ― leading to the hiring of Peter Schreyer in 2006 as chief design officer and his subsequent creation of a new corporate grille known as the “tiger nose.”
Kia’s K series, led by Peter Schreyer (now promoted to CEO), was completed last year after the automaker unveiled the first model ― the K7 sedan ― in November 2009.
Kia, which launched the K5 sedan in April 2010, filled in the K lineup by unveiling the third and fourth models ― the K9 and K3 ― in the first and latter half of 2012, respectively.
While the K9 is aimed at competing with other companies’ luxury premium sedans, the K3 is targeted at young consumers in their 20s and 30s.
The K3, an updated model of the Forte sedan, is vying with Hyundai Motor’s Avante to be the nation’s best-selling vehicle.
In the upper segment, Kia’s K5 has been surpassing affiliate Hyundai’s Sonata in popularity in the local market. Hyundai’s Grandeur also had to yield a certain portion of its market share to Kia’s K7.
As a supplement, Kia is considering releasing the K8 in the coming years, which would be classified as a sporty premium sedan like Hyundai Motor’s Genesis.
It has vowed to cultivate its brand power to near that of European and Japanese automakers within four or five years.
The company disclosed the goal to become a premium auto brand during the 2012 gathering of Kia dealership owners worldwide at a hotel in Vancouver.
By attaining continuous sales growth and reinforcing global sports marketing at the coming Euro 2012 and 2014 FIFA World Cup, Kia is seeking to enter the list of “first-class brands” by 2017.
In 2006, Kia Motors America broke ground for a manufacturing plant in West Point, Georgia, representing a $1 billion investment by the company. The factory opened in 2010 after the automaker recorded its 15th consecutive year of increased U.S. market share.
“The wave of economic impact created by Kia’s presence in Georgia goes far beyond the 10,000-plus jobs the company and its suppliers have created and will underpin the region’s economy for generations to come,” Georgia Gov. Nathan Deal said last November.
By Kim Yon-se (
kys@heraldcorp.com)
