Battle against auto behemoths may take toll on Kia
Article Abstract:
Korean automaker Kia Motors is facing an uphill battle in Korea's auto industry, with other automakers associatied with chaebols putting out new auto models and eroding Kia's sales. The woes of Kia as an independent automaker is compounded by the default on a loan made by one of its affiliates which is affecting Kia's bottom line. Kia's market share has eroded to 22.5% in the first five months of 1997, compared to 30.6% during the previous year. The company is also selling land valued at 795 bil won ($895.2 mil) to cover deficiencies in cash flow. Kia's sales are expected to decrease by 2% for 1997, and sales for 1998 are expected to increase only by 3%.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1997
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Samsung faces speed bump
Article Abstract:
Samsung Group officials have been compelled to delay the second phase of its automobile manufacturing operations due to South Korea's ailing economy. The group has been reported to invest a total of 4.3 million won for the manufacture of its own branded cars, despite threats of over supply in the market and the regional currency crisis. Sources recently revealed that Samsung is likely to abandon its plan to produce another 500,000 units, as some conglomerates have suffered massive financial losses as a result of the country's economic setbacks.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1998
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GM, Ssangyong expected to join forces in alliance
Article Abstract:
US car maker General Motors Corp. is considering investing in South Korea's debt-ridden car maker Ssangyong Motors Corp. as a strategic move to penetrate the country's protected car market. Ssangyong has been attracting foreign investments to reduce its 3.5 trillion won debt and is offering as much as a 49% stake in the company. Industry observers opine that in exchange for the investment, GM may ask Ssangyong access to its vehicle distribution system. The South Korean car market has the capacity of 1.6 million vehicle sales per year.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1997
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Comment about this article or add new information about this topic:
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