April 27, 2024

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[THE INVESTOR] Kia Motors on April 27 said it plans to reduce inventory levels at its Georgia plant, while launching the Stinger sport sedan in the second half of this year to revive sales in the all-important American market. 

“In order to improve earnings in the second quarter, we will reduce inventory and incentive expenses,” Han Chun-soo, Kia’s chief financial officer, said during a conference call after the automaker’s first-quarter earnings report. 

He also added Kia will regulate operational levels at the Mexico plant -- the production base for North and South America -- depending on the US market demand. 

Kia has pinned high hopes on its new premium sport sedan Stinger, which will be released in the US in the second half of this year, to drive sales in the country. “We will also strengthen marketing efforts of Niro SUV,” Han said. 

In January-March, Kia sold 128,000 units in the US, down 12.7 percent from a year earlier, despite the launch of new subcompact hybrid SUV Niro in the country in February. 

Kia’s first-quarter operating profit slumped 39.6 percent to 382.8 billion won on-year, hit by lower sales in its major markets China and the US. 

Net profit dropped 19 percent to 765.4 billion won during the cited period, while sales gained 1.5 percent to 12.84 trillion won. 

In total, Kia sold 658,332 units in Korea and overseas during the January-March period, down 6.5 percent.

By Ahn Sung-mi (sahn@heraldcorp.com)