Kia aims to be top 10 retail player
New business focus will introduces a raft of measures

Kia has announced plans to increase its private sales to become a top 10 UK retail player by 2010.

The news comes as the brand reduces its unprofitable fleet business, increases its dealer headcount and plans to sell an increasing percentage of European built vehicles.

The move follows a tumultuous period for the brand which last year saw its aggressive sales drive falter, the exit of Paul Williams, the managing director who led the brand's revival in the UK and the loss of over 20 per cent of its dealers.

Three per cent market share

Yaser Shabsogh, who joined Kia as sales director at the beginning of the summer, said the brand's current sales put them in the lower half of the top 20 retail sellers.

He said he was confident that changes implemented this year will see the brand achieve a 3 per cent market share and a top 10 placing in three years time.

The brand claimed its year-on-year sales decline, which saw registrations drop by 24 per cent in the nine months to September, was the result of it deliberately moving out of short-term fleet business during the second quarter of the year.

Open points

Shabsogh said the brand had walked away from large contract hire deals and was concentrating its daily rental activities on planned purchases with Europcar.

However, he said retail sales had grown each month since April and expects this trend to continue as it reduces its fleet headcount.

The brand is also looking to fill 30 open points to bring its dealer network up to 170 sites.

Network churn

“Our network churn was high last year. Many faced meltdown as the fleet mix was up but retail sales were down sharply. Dealers weren't making money and nor were we,” he said.

The brand expects sales for this year-end to reach around 30,000 units – 18,000 retail and 12,000 fleet – compared with 35,800 in 2006.

“This is a transitional year for us,” said Shabsogh.

“We plan to increase retail sales year-on-year while reducing our fleet numbers. Also by the end of next year 50 per cent of our volume will be produced in Europe which will put us in a strong position,” he added.

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Comments
Chris says:
Kia we go again....
19 Oct 2007 13:56:20

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