Kia 2003 Annual Report Download - page 13

Inaugural Year of Environment Management
In June, Kia Motors proclaimed 2003 to be the inaugural year of its
new environment management initiative, and the company launched
an ambitious campaign to bolster environmental protection activities
company wide. Importantly, all domestic operations have now been
ISO 14001 certified, starting with the Hwasung plant in May, the
Gwangju plant in November, and the Sohari plant and all other service
centers in December. Kia Motors is intent on expanding the scope of
this effort to protect the environment, steadily reducing pollution
emissions, reinforcing the environmental quality monitoring system
and broadening participation in community environment projects.
Expanded Overseas Sales and Service Infrastructures
Kia Motors expanded its pool of European dealerships from 1,100 to
1,300 in 2003, and strengthened its dealer networks across the
continent. These efforts were part of a move to expand the overall
overseas sales network and included the opening of the “Europe
Technical Hotline,” an internet resource providing real-time support
on technical issues to service managers and mechanics from overseas
sales centers and dealerships. The Hotline was designed to maximize
customer satisfaction by enabling overseas servicing staff to provide
speedy support to local customers. The company has also opened a
global web portal that will further increase customer satisfaction
through smoother overseas sales and service operation and more
efficient information sharing. The portal will be the cornerstone of
Kia’s Customer Relationship Management platform.
Sorento Performance Quality Tested and Proven
The superior quality and performance of Kia’s SUVs were proven to
the world once more in 2003. The Sorento received the Consumer
Satisfaction Quality Award in the mid-size SUV sedan category from
Strategic Vision, an authoritative American consulting firm
specialized in the automobile industry, and a customer satisfaction
award from AutoPacific, another automotive consulting firm. The
vehicle has created a sensation in the US market. It earned five stars
(the maximum score) on a crash safety test administered by the US
National Transportation Safety Board, was selected as the best SUV
under US$25,000 by the New England Motor Press Association, and
won the “Best SUV Award” from the Northwest Automotive Press
Association.
Consolidated Hyundai-Kia R&D Center Launched
In May 2003, Hyundai Motor and Kia Motors relocated their R&D
facilities at diverse locations to the Namyang Research and
Development Center. The centralized facility was expanded and
realigned to be more competitive in the global automotive industry,
shorten the development cycles and cut costs by sharing platforms
and components among different automobiles. This state-of-the-art
R&D center is the largest of its kind in Asia and can be used for
performing basic research and all processes required in new vehicle
development on site. In addition, the Hyundai-Kia Design & Technical
Center opened in California in
February 2003, followed by the opening of the Hyndai-Kia Europe
R&D Center in September to form a global R&D network.
Fastest Sales Growth in EU
Kia Motors achieved the fastest sales growth of any automaker in
the EU market during 2003. According to the ACEA (Association des
Constructeurs Europe´ens d’Automobiles), sales of Kia automobiles in
the EU soared 48.4% , from 72,529 units in 2002 to 107,631 in
2003, elevating the company’s market share by 0.8% . Mazda
recorded the second-fastest annual sales growth rate of 30.4%.
Although, overall automobile sales in Europe were 1.3% lower in
2003 than in the previous year, the market is expected to rebound in
the coming year, Kia Motors plans to continue its blistering sales
growth rate by introducing new models that cater to European
tastes.
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