Kia 2005 Annual Report Download - page 15

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15
2005 Annual Report
During this period we made extensive changes to
our brand management strategies, to pave the way
for differentiation from our peers so that we can
assume a greater presence in global markets.
KIA Motors also successfully launched completely
new models including the Pride, Grand Carnival,
and Lotze. We are making smooth progress in the
construction projects of our Europe and number 2
China plants, and construction will begin later on
the US plant which will have an annual capacity of
300,000 vehicles. This period saw a rise in our
international credit rating, as Standard and Poor’s
upgraded us to investment grade (BBB-), and JD
Power selected our Sportage & Opirus models as
the best vehicle types in the APEAL study.
None of these accomplishments could have been
achieved without the support of our shareholders.
We appreciate your ongoing support as we achieve
better results. We promise to put forth more
passion and commitment to fulfill all our
responsibilities. And intend to satisfy the
expectations of our shareholders.
The past year was filled with challenging global
export conditions, especially in central Asia, where
higher oil prices became entrenched and the value
of the USD depreciated relative to many currencies,
including the KRW.
To an export driven corporation such as ours, these
uncertainties sometimes appear as walls as we try
to deepen our economic integration with
economies from around the world.
Yet KIA Motors considers these potential walls as
an opportunity to strengthen our structure. We will
concentrate further efforts in contingency
management and core competence management
and will make resolute investments to secure
future income sources. We will confront these
walls head on.
With firm resolution KIA Motors has set
challenging business targets for this year, including
▲vehicle sales of 332,000 in the domestic market
• Enhance Competitiveness
in Overseas Market
• Develop Best-in-class Products
• Improve Productivity
• Elevate Quality of Global Operations
• Pursue Innovative Material Cost
Reduction
• Enhance Profitability of Each Model
• Ensure ROI for New Models
• Int ensify Cost Reduction Efforts
• Improve Organizational
Management
• Build Cooperative Labor Relations
• Implement Responsible, Proactive
and Creative Management
Strengthen Sales Network,
Productivity & Competitiveness
Stabilize Business
Structure to Maximize Profit
Cultivate Future-oriented
Corporate Culture