Hyundai Motor Group will take its investment in Europe to around EUR3.5bn by 2010 with the addition its production plant for the Hyundai brand in the Czech Republic.
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The group is already committed to its EUR1.3bn Kia factory in Zilina, Slovakia, due to start production in December, while the brand’s new EUR60m European headquarters in Rüsselsheim, Germany, is on schedule to open in May next year.
Chung Jin-Haeng, president Kia Motors Europe, said his brand alone was on the way to reaching its target of half a million sales annually in Europe by 2010. That includes the established markets of Western Europe along with Poland, Hungary, Czech Republic and Slovakia.
He said: “Through the first five months of 2006, sales of Kia vehicles in export markets have risen by over 6% reaching 343,000 units and Europe remains the fastest growing region with over 133,000 cars sold through May, a 10% gain over the same period in 2005.”
Leading the performance has been the strong sales performance of SUV and MPV models which now account for 43% of total export sales.
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By GlobalDataBetween now and the end of the decade, Chung said Kia Motors plans to introduce 10 new models with a total of six new launches this year. These include a number of variations on the ED, the model being built at Zilina, including 3-door, 5-door and wagon versions – and possibly a sports model based on the platform.
Also coming are upgraded versions of the Opirus and Cerato, plus model changes for the Picanto and Rio.
Chung said that sports marketing would continue to play a key role in expanding the brand awareness of Kia worldwide. “Our global strategy is to participate even more in high profile sporting events that match our brand identity.”
Kia has recently concluded agreements to sponsor the world’s premier football tournaments starting with the Euro 2008 championships and Chung revealed that the European Champions League would be included in further sponsorship deals with UEFA, the European soccer governing body.
The Hyundai Automotive Group has sponsorship rights for 41 FIFA events including the 2010 and 2014 World Cups.
Chung was speaking at the launch of the all-new, short-wheelbase Carnival (Sedona in some markets) in Luxembourg, a slightly smaller version of the model unveiled at the Detroit Motor Show at the beginning of the year.
Jean-Charles Lievens, senior vice president Kia Motors Europe said that the shorter model had been created specifically for the European market and said there were no plans to market the long-wheelbase version in the region.
Two engine versions are available, 2.7-litre V6 gasoline and 2.9-litre diesel and all-new technology on the Carnival is a variable rack stroke (VRS) steering system.
In its default position, the system pushes the road wheels to a greater angle giving a turning radius of 5.5 meters for city driving and parking. When turned on, the angle is increased to allow greater clearance for snow chains within the wheel-arches, while the turning radius is increased to 5.8 meters.
Chris Wright
