Kia 2015 Annual Report Download - page 6

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Dear shareholders,
I would like to thank you all sincerely for the unwavering
support and affection you have shown to Kia Motors
over the last year.
Economic trends in 2015 were mixed. Emerging
nations saw stagnation due to slowing growth in
China along with political and economic instability in
Russia and the Middle East. In contrast, the U.S. and
Western Europe enjoyed a bit of an economic recovery.
Meanwhile, competition in the automobile market
has intensified as a result of the growth of local
Chinese brands and aggressive measures taken by
Japanese brands to leverage the weak Japanese Yen.
Despite the difficult business environment, we
achieved a number of records last year, including a
global sales mark of 3.05 million units, as we fought
hard both in developed markets and at home in
Korea, while our performance was also helped by a
rise in RV sales. 2015 was the second consecutive
year we have sold more than three million units.
Meanwhile, domestic sales exceeded 500,000 units
for the first time, and sales in the U.S. eclipsed the
600,000-unit mark for the first time since we began
sales there in 1994.
As a result of our continued emphasis on quality
management, Kia Motors ranked in first place among
all non-premium brands in J.D. Power & Associates’
2015 Initial Quality Study (IQS). Kia Motors was also
named one of the “most reliable brands” in a survey
by Consumer Reports in the U.S., and was the number
one ranked brand for the first time in a quality survey
by Germany’s Auto Bild. Such performance is a clear
reflection of the recognition we have received from
customers around the world for our efforts to offer
unsurpassed quality.
We have also continued to bolster our brand
competitiveness, and in 2015 succeeded in posting
a year-on-year rise in brand value of 5% to USD
5.7 billion. This cemented Kia Motors 74th position
among the world’s best global brands in 2015,
making us one of the world’s top 100 brands for the
fourth consecutive year.
Finally, productivity rose again at our plants in
Korea and overseas, and our global-leading levels
of operational efficiency will be featured at our new
plant in Mexico once it begins mass production in
the first half of 2016.
None of these achievements could have been
possible without your steadfast support. I would
like to take this opportunity to extend my heartfelt
gratitude to you once again.
Turning now to 2016, we expect to see greater
uncertainties in the global economy, including the
effects of interest rate hikes in the U.S., stagnant
growth in China, and increased country risks stemming
from plummeting oil prices. Developed markets
could see slowing growth, while emerging markets
will continue to suffer from a slump in demand.
06 | KIA MOTORS
VICE CHAIRMAN’S
MESSAGE