Kia 2010 Annual Report Download - page 4

Dear shareholders,
2010 was a year in which Kia Motors attracted the attention
and respect of the global industry as the ‘New Kia’.
Early in 2010, we successfully launched the Sorento R (known
overseas as ‘Sorento’), Sportage R (Sportage) and K5 (Optima),
driving our global sales and production above 2 million units
and securing Kia Motors a place among the world’s top ten
carmakers.
Kia’s record-high financial achievements are even more
pleasing in light of our recent strike-free year in 2010 and
excellent relationship with the company’s unions. These factors
have combined this year to set Kia’s stock price on a path to
record-breaking highs.
Turning to our core competency of design, the K5 and Sportage
R were honored with the 2011 iF Design Award, one of the
world’s top three awards in the field of design. In Korea, the
K5 and Sportage R also ranked first and second in the ‘2010
Auto Design of the Year’ competition, providing yet another
affirmation of the growing value of the Kia Motors brand.
Kia Motors’ brand value has skyrocketed in recent years,
thanks in large part to our strategic marketing activities. Kia
remains a steadfast supporter of the national speed skating
Kia Motors will continue
on its path of success,
achieving our goals
and meeting market
changes with unyielding
dedication.
VICE CHAIRMAN’S MESSAGE
team and swimming team, which had an unexpectedly
strong performance at the Vancouver Winter Olympics and
Guangzhou Asian Games, respectively. We gained real-time
exposure to one billion viewers with our official sponsorship
of the FIFA World Cup South Africa, which helped significantly
raise the recognition of our brand.
Meanwhile, the market has welcomed our new generation of
products, and the numbers speak for themselves. Last year,
Kia sold 2.13 million units worldwide, recording revenues of
KRW 42.29 trillion, operating income of KRW 2.84 trillion and
net income of KRW 2.64 trillion.
On behalf of the entire staff and management of Kia Motors,
please accept my thanks for your consistent encouragement
and faith. We know that all of our achievements have been
possible only because of the continuing support of our
investors.
Distinguished shareholders,
The global market is in the midst of a period of unprecedent-
ed change, and companies who are not positioned to cope
may find themselves marginalized. The technology gap be-
tween the leaders and the followers is narrowing, and com-
petition to occupy the top positions in the green car market of
the future is becoming increasingly fierce.
We have set an ambitious goal to increase global sales by
more than 14.1% over last year, targeting a volume of 2.43
million units.
Kia Motors has developed a strategic management plan
for 2011 that will raise the company’s international profile a
global carmaker. To this end, we will strengthen our market
leadership through innovation and building brand value; we
will advance our profit leadership with visionary management
planning; and we will establish the foundation of our
sustainability leadership by securing solid growth engines for
the future.
Kia’s immediate strategy for raising product competitiveness
is to successfully launch exciting new versions of the Morning
(known overseas as ‘Picanto’) and Pride (Rio) while also
introducing the K5 Hybrid. In addition, we are elevating our
ability to mount rapid, effective responses to changing market
conditions by establishing a system of organic cooperation
and open communication among all our worldwide sales and
production divisions.
Our management systems are being continually reevaluated
to ensure their sustainability. Procedures and rules are
being realigned and harmonized, and a culture of creativity
emphasizing focus on talent and our customers is being
spread throughout the company.
Kia Motors views product quality and passenger safety
as our foremost concerns. The company invests heavily in
technological improvements that enable us to earn the trust
and respect of the world’s motorists. We are also expanding
our investments in green technology research, as we intend
for Kia Motors to be a world leader in the production of low-
carbon automobiles.
Such a culture helps to define a workplace that nurtures self-
esteem in all its members, and where labor-management
relations are handled in an atmosphere of trust and mutual
respect. Our staff and management bond together through
shared volunteer work, and take pride in Kia’s many social
contribution activities. We are also building an image as a
caring corporate citizen that is concerned as much about the
growth and success of its business partners as it does about
its own.
Beloved shareholders,
We have reached our current heights thanks primarily to your
commitment, support and encouragement. Be assured that
we are working hard every day to repay you by meeting all of
our goals with dedication and a pioneering spirit.
I ask for your continued encouragement and support, and
wish you and your family good health and happiness.
Thank you.
Hyoung-Keun Lee
Vice Chairman
06 COMPONENTS OF SUSTAINABLE GROWTH 07
KIA MOTORS ANNUAL REPORT 2010