Posted February 9, 2009
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Milestone

Kia Motors Marks its 10th Year in Canada

MISSISSAUGA - Kia Canada Inc. marks its 10th year since first arriving in Canada in 1999. In that time, more than a quarter million vehicles have been sold across the country, and the company has grown to employ hundreds of Canadians through its dealer network, company headquarters in Mississauga and 4 regional offices.

Kia Canada Inc. is a subsidiary of Kia Motors Corporation. Founded in 1944, it is Korea's oldest manufacturer of motor vehicles. The word Kia, is derived from Chinese origins, meaning "arise or to come out of Asia". Dedicating itself to personal mobility, the first items produced were bicycles and bicycle parts, followed quickly by scooters and motorcycles in the 1950s and early 1960s. As Korea's industry and economy grew, vehicles that supported industrial growth were built that included the K-360 cargo vehicle and the Titan, a robust cargo truck.

In the early 1970s, Kia's expansion included the opening of the Sohari plant, Korea's first fully integrated automobile production facility, and the first internal combustion engine plant in 1973. The following year, production of Korea's first passenger car began with the Brisa a compact sedan. By the late 70s, the Sohari plant's increasing technological sophistication led to partnerships that built vehicles for Peugeot and Fiat, in addition to vehicles produced for the domestic market.

In an effort to develop its own technologies and research, the Sohari based Kia Research and Development Center was completed in 1984. By 1986, Kia became an equity partner with Ford, and in 1987 began exporting Kia built vehicles to the United States known as the "Festiva" in North America and "Pride" in the Korean market. In the early 1990s, Kia opened a research center in Tokyo, completed the Asan Bay manufacturing plant, and established Kia Motors America in the United States in 1992. In 1994, Kia celebrated its 50th anniversary and began marketing cars and trucks in the United States, Latin America, the Middle East, France, Germany and Italy. By 1995, Kia had produced four million vehicles, and exported one million around the world. In 1997, two years before establishing itself in Canada, Kia became the 16th largest producer of cars and trucks worldwide, achieving annual production of 750,000 vehicles, and exporting to more than 170 countries. The following year, Kia merged with Hyundai to form the Hyundai-Kia Automotive Group.

Present day, as part of this group, more than 1.5 million vehicles a year are produced in 13 manufacturing and assembly operations in eight countries, which are then sold and serviced through a network of distributors and dealers covering 172 countries. Kia today has over 40,000 employees worldwide with annual revenues of over US$14.5 billion and became the fifth largest automotive manufacturer in the world in 2007.

Kia is actively developing state-of-the-art eco friendly vehicles for future commercialization. In 2005, Kia Motors opened the US$58 million Eco-Technology Research and Development Centre (ETRC) in Korea, dedicated to the development of cleaner, greener future transportation that is fully compliant with global environmental regulations. Over the last four years, Kia Motors has supplied the Korean government with 978 Rio hybrid vehicles as part of this research and development. Additionally, Kia has over 30 years experience in designing and mass producing diesel engines, and has been at the forefront of producing efficient high speed direct injection diesel engines. Significant investments in the North American markets have resulted in the opening of a $120 million dollar corporate headquarters and design center in Irvine, California in 2008. The design centre features a state-of-the-art 100,000 square foot centre that allows up to eight vehicle models to be worked on simultaneously, a milling shop, a three dimensional presentation room that features clearstory windows to allow for viewing indoors under natural light, a paint booth, a private outdoor viewing courtyard, a recreation room, a research library, four conference rooms and a secure, underground garage. Joining Kia in 2006, world renowned automotive designer Peter Schreyer's designs will have a significant impact on the way the Kia brand is perceived by consumers around the world.

Later this year, Kia's first North American manufacturing plant, featuring the latest technology and equipment, will begin production of Kia vehicles in West Point, Georgia. Representing a billion dollar investment, the plant is capable of producing 300,000 units per year.

With fifteen employees at its begining, Kia Canada began operations in a 5,000 square foot facility in Mississauga, Ontario in early 1999. With just over 1,400 vehicles sold that first year, Canadian sales increased nine fold the following year to 13,373 as new dealers and supporting regional offices were established across Canada. In 2005, Kia Canada moved into its current headquarters in Mississauga, a facility with 175,000 square feet that includes a national parts distribution warehouse, main offices and a showroom. Today, Kia Canada employs 134 people in its Mississauga and regional headquarters in Vancouver, Montreal, Quebec and Halifax. Additionally, Kia's growing dealer network employs over 1,500 people across Canada in 155 dealerships. With sales of 37,520 units in 2008, Kia Canada ended the year up 7.8% over 2007 sales, which marked 5 straight years of sales growth. In the coming year, Kia Canada will be introducing three all new vehicles to its line up, including the new Soul later this month.

© Copyright 2009/Exchange Morning Post/Exchange Business Communications Inc.
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