Kia 2015 Annual Report Download - page 7

Download and view the complete annual report

Please find page 7 of the 2015 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.

Page out of 128

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

The Korean market is forecast to be difficult due
to economic downturn and increased imports of
overseas brands. Furthermore, structural changes
are taking place in the automotive industry such
as greater segmentation of customer needs and
growing demand for eco-friendly and autonomous
driving technologies.
In order to adapt to these changes and continue
to achieve stable growth, Kia Motors established
‘Strategy 2020’ that builds upon our achievements
resulting from the execution of ‘Vision 2016’ which
commenced in 2012. ‘Strategy 2020’ is a new mid-
to long-term plan to boost our competitive edge in
terms of the markets we cover and the customers
we serve, and it will drive growth and profitability
while helping us to become a truly global leading
automaker. Accordingly, we will undertake the
following key strategic tasks.
First, we will focus on strengthening sales.
We will continue with the release of new vehicles,
including the all-new Cadenza (K7) and the Niro, our
first dedicated-hybrid compact sports utility vehicle,
in early 2016; as well as the next generation Rio
(Pride) and Picanto (Morning), which are planned for
release in the second half of the year. In addition,
we will improve sales in China and other emerging
markets, including ramping up our efforts in the
Central and South America market which will be
buoyed by the start of mass production at our new
plant in Mexico. 2016 will also see an expansion
in our line-up of eco-friendly cars, including Niro,
Optima (K5) PHEV, and all-new K7 HEV.
In 2015, Kia Motors proved
its competitiveness amidst
numerous challenging situations
while achieving a number of
milestones in terms of sales,
production, quality, design
and R&D.
Second, we will move forward with product,
marketing and customer channel innovation.
We not only will improve how customers think of the
Kia brand by enhancing our marketing communi-
cations and product quality, but will also offer the
best in customer service at sales and service points
while always looking to fulfill customer needs.
Third, we will continue to focus on maximizing
efficiency and profitability.
In addition to seeking production efficiency increases
at our plants in Korea and abroad, while offering
improvements in the initial quality and reliability
of our new cars, we will monitor global inventory
levels, reduce costs and eliminate waste to improve
profitability.
Fourth, we will establish a forward-thinking
management system.
By strengthening our global organization, hiring
the best people, and cultivating the best human
resources, we will build on Kia Motors’ unique
corporate culture while also maintaining a strong
sense of social responsibility.
Everyone at Kia Motors will make 2016 a year
for building a great future through creativity and
passion. We will tackle any difficulties head on
and accomplish the plans we have set for this year,
while always doing our best to repay your steadfast
support.
I ask for your continued encouragement for Kia Motors
in 2016, and wish you and your families good health
and happiness in the year ahead.
Thank you.
Hyoung-Keun Lee
Vice Chairman & CEO
07
ANNUAL REPORT 2015 |