Bloomberg News (Bratislava) - The slowing economy in western Europe won't affect output at Kia Motors Corp. (000270)'s Slovak factory as demand for its models remains strong, the unit's Chief Executive Officer Chung Myung-Chul said.
The South Korean carmaker's Slovak factory is benefiting from rising demand for cee'd and Sportage models, both of which are produced in the eastern European country, Chung told journalists today at a press conference in Zilina, northern Slovakia. The company maintains its target of assembling as many as 250,000 cars this year and 350,000 engines, he said.
Carmakers are facing uncertainty as the sovereign debt crisis is causing the euro-region's economy slow. The European Central Bank lowered the 2011 growth forecast for the region to 1.6 percent from 1.9 percent. Kia's sales in the Europe jumped 25 percent in August from the same month last year, triple the 7.8 percent increase for all carmakers.
The Slovak unit, which started production in 2006, will add a third shift in the first quarter to meet rising demand, expecting to hire about 1,000 people.
The company today officially started operations at a second engine plant in Zilina, which will supply the Czech factory of Kia's affiliate, Hyundai Motor Co. (005380), boosting annual engine capacity to 450,000 units.
