South Korea's Kia Co., Ltd. signed an expansion investment agreement with Yancheng People's Government and Jiangsu Yueda Group. Song Husheng, President of Kia Co., Ltd., Zhou Bin, Acting Mayor of Yancheng City Government, Zhang Naiwen, Chairman of Jiangsu Yueda Group, and Liu Changsheng, General Manager of Dongfeng Yueda Kia, witnessed the signing of the agreement.
Liu Changsheng, general manager of Dongfeng Yueda Kia, and Wang Xudong, director of the management committee of Yancheng Economic Development Zone, signed the contract as representatives
Kia and Yueda plan to form a new joint venture to open a new era of joint ventures. The new joint venture plans to increase capital by USD 900 million and rapidly increase vehicle sales and capacity utilization through expanding investment, introducing new models, developing new energy vehicles, and setting up an export base. According to the plan, the new company name will be released in April this year.
The Yancheng government will fully support Kia's expansion of sales in the Chinese market and support the export trade of Kia's Yancheng plant to help Kia's development in China. Since Its entry into China in 2002, it has sold nearly 6 million vehicles, and at the same time, it has strongly driven the development of the local auto parts industry.
The new pure electric vehicle EV6
It is reported that Kia will focus on promoting the introduction of global strategic models and new energy vehicles. The new models launched this year will be equipped with a large number of safety configurations and new technology configurations to further enhance product performance and market competitiveness, and together with models on sale such as Jawa and SmartCar Ace, kia's global strategic model lineup will be improved. From next year to 2027, starting from the new pure electric vehicle EV6, Kia will launch a new electric model in the Chinese market every year, gradually building a new EV matrix of six electric vehicles.
Fourth generation Jawa
At the same time, Kia will also actively carry out innovative marketing activities to show Chinese consumers the vision of "New Kia" and sustainable future business. With the dealer location as the center, strengthen regional marketing, and effectively increase the consumer brand experience touchpoints; at the same time, continue to carry out "door-to-door test drive" and "door-to-door service" throughout the year, so that consumers can test drive new cars at home and meet the basic after-sales service, and enjoy a good brand experience. At the same time, the new SI (Terminal Image System) will be applied to all 4S stores and city exhibition halls, so that everyone can feel the new Kia brand image.
In addition, the joint venture will build a new organizational structure, establish an innovative organizational culture, actively introduce local talents and professionals, and accelerate the localization work. A relevant person from Kia said, "Kia will accelerate the landing of the 'Global Kia' image in the Chinese market, and form a more efficient decision-making process through organizational structure adjustment, solidly promote the development of various businesses, and start again in the Chinese market." In the future, Kia will continue to deepen its efforts in the Chinese market and explore the most suitable management system for the Chinese market. ”
In addition, the new joint venture will also achieve win-win cooperation with Chinese dealer partners by formulating reasonable operating indicators, continuously optimizing business policies, and rewarding excellent dealers.
2022 coincides with the 30th anniversary of the establishment of diplomatic relations between China and South Korea and the 20th anniversary of Kia's brand entry into China, and it is also a key year for Kia to deepen its strategy of brand renewal and 2045 carbon neutrality. Taking this signing as an opportunity, with the support of the Yancheng City Government and Yueda Group, Kia will take root in Yancheng, based on the Turn-around strategy and "All New Kia, All New Start!" "Business policy, accelerate the implementation of global strategy, integrate global resources, better feed the Chinese market, and provide Chinese consumers with more products and services worth looking forward to."
It is worth mentioning that the regional integration of the Yangtze River Delta is a major national strategy, while Yancheng is the city in the central area of the Yangtze River Delta. Jointly building the China-ROK Industrial Park is a major strategy proposed and promoted by President Xi Jinping, and is an important decision and deployment made by the CPC Central Committee and the State Council in view of the new situation and the global outlook. Under the active promotion of the Yancheng government, Yancheng is currently Kia's only production base in China; since then, Yancheng will continue to serve as the base for its future business in China. Over the next decade, Kia has set a target of more than 4 million units in China.