Kia 2001 Annual Report Download - page 5
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Please find page 5 of the 2001 Kia annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.For Kia Motors, 2001 was an extraordinarily successful year. While the global automotive industry experienced a
pronounced downturn, we achieved our best operational results ever. Sales of 902,409 units generated 12.4 trillion
won in sales, which translated into 552 billion won in net income.
Much of our success was in overseas markets. The U.S. market recorded particularly strong results after the launch of an
upgraded Carnival(Sedona) generated astonishing sales growth. Sales in the United States as a whole increased by 47%
year on year, making Kia one of the fastest growing brands in that market. Kia also expanded the scope of its operations
in the potentially lucrative China market.
The company's operations have also received their share of recognition. Kia was awarded the Korea Quality Grand
Prize and the Personnel Management Grand Prize in 2001, strengthening our position at the forefront of the Korean
automotive industry. On the international stage, Kia's products have begun to collect a range of awards and citations
for quality. The Carnival in particular has significantly raised the awareness and prestige of the Kia brand.
We also delivered on our promise to shareholders by completing the cancellation of 80 million treasury stocks as
promised to the shareholders. This underscores Kia Motors' financial soundness and highlights our continued commit-
ment to provide real shareholder value.
Brand recognition on the international market was raised by our agreement at the end of 2001 to act as major
sponsor for the 2002 and 2003 Australian Tennis Open. This is a groundbreaking move for Kia, and is a part of a glob-
al sports marketing strategy that will seek to leverage high-profile international sporting events to raise awareness of
the Kia brand. In the domestic market, we also founded the Kia Tigers professional baseball team, increasing our
exposure in this very popular spectator sport.
Every accomplishment listed above, and indeed every success that Kia has had, is the result of a committed team
effort. The support of our shareholders has made an outstanding contribution to that team effort and has instilled a
renewed sense of confidence throughout the company.
2002 will be a period of consolidation as Kia completes the groundwork that will enable us to join the world's top
five manufacturers. Solid leadership, improved quality management and a focus on global customer satisfaction will be
key components in that process. The introduction of a Six Sigma program, an integrated quality system and other ini-
tiatives are intended to raise quality levels company-wide.
Kia is pursuing both quantitative and qualitative market growth through an aggressive, diversified sales strategy com-
bining expanded sales of lower-priced, high-volume models with an increased emphasis on higher value-added and lux-
ury products. The launch of the Sorento will strengthen our sales in the important SUV market while improving our cor-
porate image through the development of more premium models. Restyled editions of existing models including the
Rio, Carens and Optima will further bolster our product competitiveness across the entire Kia range. The new and
upgrade models will be supported by increased overseas advertising and sales promotions to raise brand recognition.
Our global sales target for 2002 is 1,092,000 units. - 552,000 exports and 440,000 for the domestic market. The
remaining 130,000 units will be produced by our overseas assembly operations on a knock-down basis.
Of course, producing and marketing quality vehicles is only half the battle in building a global automotive brand.
The other half is providing a service offering that matches the quality of the product. Unfortunately, this is an area in
which Kia has lagged behind its competitor in the past. We have already taken steps to address this. The introduction
of our Kia Q-Service offering has increased after-sales service capabilities of our dealerships and begun generating
greater levels of consumer trust in Kia Motors. Kia after-sales service will take on a new look this year with the expan-
sion of the 24-hour-a-day emergency service, the provision of online maintenance services via the Kia homepage, a
new compensation program for dissatisfied customers and upgraded maintenance technology. We are also expanding
investment in R&D to continue improving the quality and technical standards of the vehicles we produce.
Kia Motors has had a very successful few years. However, there is no time to rest on our laurels. If we are to realize
our goal of joining the world's top 5 automakers by 2010, we need to hone our competencies still further and strive
for continuous growth. Kia's product line is improving all the time, and receiving industry recognition for quality and
value. Customers are increasingly seeing in Kia cars a product that they can be proud to own.
The task ahead of us is to build on that momentum and to reproduce Kia's success in the U.S. market and in other
markets around the world. That is a goal to which everyone at Kia is fully committed. I am confident that the results
will more than justify the faith and trust of all our shareholders.
"2002 will be a period of consolidation
as Kia completes the groundwork that will enable us
to join the world's top five manufacturers.
Solid leadership, improved quality management
and a focus on global customer satisfaction will be key
components in that process."
Kim, Noi-Myung, President & CEO
Kia Motors Co., Ltd