Kia 2001 Annual Report Download - page 13
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Kia completed the purchase and cancellation of 80 million shares of its
treasury stocks, delivering on a promise to the general stockholders
meeting held in November 2000. The stocks amounted to 17.8% of all
issued shares. This cancellation of treasury stock served to build greater
trust with the shareholders. The move reduces the number of shares in
circulation, increases earnings per share and return on equity and raises
actual corporate value. It is also expected to have a very positive effect
on boosting the share price.
Stock Cancellation Increases
Corporate Value
Kia Motors acquired national favorite Haitai Tigers professional base-
ball team and re-launched it as the Kia Tigers, the 14th team in the domestic
pro league. From early on, Kia stirred excitement among the players with ambi-
tious investment while Lee Jong-beom, the team's star player, brought in droves
of fans and helped rekindle the sparkle of the domestic professional baseball
diamond. At an inauguration ceremony at the Shinyang Park Hotel in Kwangju
on August 6, Chairman Chung, Mong-Koo announced he would spare no sup-
port in making the Kia Tigers the best in the league.
Kia Tigers Professional Baseball Team
Extremely Popular
On February 4, Chairman Chung, Mong-Koo received the Distinguished
Service Citation from the U.S. Automotive Hall of Fame. The award recognizes
his contribution to establishing the Korean automobile industry as a global
force. Under his leadership, Hyundai/Kia Motors' exports to North America
increased by almost 50% year on year in 2001, Kia operations were quickly
normalized, and Hyundai/Kia achieved its best results ever while maintaining
stability in management and hiring.
Chairman Chung, Mong-Koo awarded
the Distinguished Service Citation
Kia Motors was awarded the grand prize at the 27th National Korea
Quality Management Awards on November 7, 2001, the first time an
automobile manufacturer has received the award. Kia was also award-
ed the Personnel Management Award, the most prestigious domestic
prize for personnel development. The awards will serve to instill higher
levels of trust in Kia customers and greater confidence among Kia
employees and will contribute to the company's global quality
competitiveness.
First Automaker to Win Korea
Quality Management and Personnel
Management Awards
Despite overall stagnation in the global automobile market, Kia maintained a
12% growth rate in exports. In the U.S. market, the world's largest, Kia
launched the Carnival(Sedona) minivan and recorded the highest sales growth
rate among Korean automakers. Kia's recent export success is attributed to bold
marketing, improved customer satisfaction from quality improvements, and
expanded product lines. The introduction of the Sedona and Optima has
dramatically raised consumers' awareness of Kia quality and brand image, and
has been favorably covered by the local media.
New Sales Records in the U.S. Market
On November 27, Kia held a signing ceremony to establish a joint
venture with Dongfeng, one of China's 3 major automakers, for operations in
the Chinese passenger car market. Under the agreement, Kia will produce and
sell all types of passenger vehicles in China. Kia will invest 50% , while
Dongfeng and Yueda will each contribute 25% of the equity capital for
Dongfeng Yueda Kia Motors Co., Ltd, which will produce the latest Kia
passenger car models in China. The existing plant, with a current annual
production of 50,000 vehicles, will be expanded to a capacity of 300,000
units. The newly established joint venture will be independently managed.
Kia Moves into
the Chinese Passenger Car Market
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KIA MOTORS
Top 10 Events in 2001