Kia to sell new SUV in June

Seoul April 10, 2004; The Korea Herald reported that Kia Motors Corp., Korea's second-largest carmaker, will unveil its new sport utility vehicle model at its Gwangju plant in June, signaling the company's aggressive drive to expand in the fast growing segment of the global auto market, officials said yesterday.

The new model, tentatively named KM, is smaller than Kia's other SUV, the Sorento, and Carnival minivan. The Gwangju plant will make 150,000 units of the new model beginning in June and 70 percent are destined for export, according to the company.

"The KM is a follow-up model of the SUV model Sportage. The Sportage was a very popular model in the North American market. Thus, the KM will also focus on the same region," a Kia official said.

The compact SUV is scheduled to debut domestically by August, the official added.

The Gwangju plant, which once specialized in commercial vehicles, has undergone a 530 billion won renovation to produce the SUV, according to industry sources.

After the overhaul is completed in June, the plant's production capacity will be raised 59 percent to 350,000 vehicles.

Sport utility vehicles have been highlighted as a profitable and fast growing segment of the global car market, experts note. Local automakers that initially shied away from the model type are now quickly joining the heated competition.

Last month, GM Daewoo Auto & Technology Co., Korea's third-largest carmaker, unveiled 670 billion won investment plan to launch a sport utility vehicle model.

Renault Samsung Motors Corp., the fifth-largest automaker here, also plans to start SUV production, based on a platform provided by its Japanese sister company, Nissan Motor Co.