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2007/06/27


"Dongfeng Yueda KIA has again ,effected on May 18, reduced the prices of its products. The new offers involve 24 models under 4series, abd the highest is 32,000 yuan. Under the new program, the lowest offers of its Optima, Carnival is 122,800 and 195,800 yuanrespectively. Its January launched RIO is offered 6,000yuan lower now.

Sources at the company confirmed the would-besecond plant is behind the reduction. The new isexpected to put into full production by Oct, helping theauto maker reach a new step of 300,000 cars annually."

- CAIN -


Carnival 2.7 GL
http://product.xgo.com.cn/pic_list/2973/107304.shtml




 

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Kia's second plant opened in December 2007, two months later as predicted in previous post.

KIA Motors Corp, the Republic of Korea's second-largest carmaker, opened a second factory at its venture in China over the weekend. The move came as the company tries to reverse its sales slump in the world's fastest-growing major car market.

The 6.8 billion yuan (US$919 million) factory, which can make 300,000 vehicles annually, boosts Kia's total capacity in China to 430,000 units, the company said in a statement on Saturday. Kia aims to raise its share of China's car market to 8.3 percent by 2010 from its current share of 1.6 percent.

Kia has lost customers to General Motors Corp, which is investing US$1 billion annually in China, and Toyota Motor Corp, which started construction of a new factory in June, Bloomberg News reported. Seoul-based Kia's sales of locally-made cars in China fell 14.6 percent in the first 10 months, compared with a 24 percent jump in the country's total passenger car sales.

"Kia is losing to American, European and Japanese automakers," said Yu Bing, a Shanghai-based analyst at Pingan Securities Co. "Automakers have to bring out timely new models in order to maintain their position in the Chinese market."

Kia, an affiliate of Hyundai Motor Co, the Republic of Korea's largest carmaker, builds Optima sedans, Sportage sport-utility vehicles and Carnival multipurpose vehicles in the eastern Chinese city of Yancheng, Jiangsu Province. It plans to add one or two new models each year.

The new factory, which has an average automation rate of more than 90 percent, is equipped with the most advanced technologies in the world, according to the statement. Upgraded Cerato sedans and Cerato hatchbacks will be assembled at the plant.

Kia's Chinese venture Dongfeng Yueda Kia Motors Co Ltd is owned by Kia, Dongfeng Motor Corp and Jiangsu Yueda Investment Co. Dongfeng Motor and Jiangsu Yueda each own 25 percent of the venture.

"China's auto market is changing very rapidly and we are facing tough competition," Chung Mong Koo, chairman of Hyundai Motor Co, Kia's parent, told reporters on Saturday in Yancheng. "The new factory prepares the ground for Dongfang Yueda Kia to become one of the mainstream automakers in China."

China's annual economic growth has averaged 9.6 percent over the past five years, making cars affordable to more people. In addition to Toyota's and GM's investments, Volkswagen plans to expand production by 2010.

Kia's loss widened in the third quarter because of a stronger won and slumping sales. It predicts a return to profit next year helped by the introduction of five new or revamped models in Korea, Chief Executive Officer Cho Nam-Hong said in October. The carmaker aims to raise its share of the South Korean market, its most profitable, to 25 percent next year from an expected 22 percent this year, Cho said. It aims to sell 318,000 vehicles domestically in 2008.



 
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