Kia Motors aims for 17% U.S. sales growth in 2010

Kia Motors Corp., South Korea's second-biggest carmaker, aims to increase U.S. sales as much as 17 percent next year as it rolls out new models and predicts a recovery in industrywide demand.

The automaker is targeting 350,000 retail sales of models including the Forte and Soul small cars in the U.S. on a preliminary basis, compared with a projection of about 300,000 for 2009, said Executive Vice President Thomas Oh, who heads Kia's business in the Americas.

"Kia far outpaced the auto industry in terms of sales this year," Oh said in an interview at the carmaker's head office today. "We turned the economic recession into an opportunity to sell more cars. We're very much prepared to grow and expand not only in the local market, but also overseas."

Kia and affiliate Hyundai Motor Co., South Korea's largest carmaker, posted record profits last quarter as government tax cuts and subsidies in Asia, Europe and the U.S. spurred vehicle sales. Kia raised U.S. sales 7.2 percent in the first 10 months of this year, bucking a 25 percent industrywide drop as it took customers from General Motors Co. and Toyota Motor Corp.

Sales of Kia's small-car models benefited from stimulus measures that included government rebates for customers who traded in older vehicles for new, more fuel-efficient ones. A weaker won also enabled the carmaker to spend more on marketing without eroding profit.

'Humble' Target

Global auto demand may gain about 6 percent next year from this year's level, while the U.S. market may expand about 8 percent, Oh said. Kia's 2010 U.S. sales target is "humble," he said. Kia expects "double digit" growth in South American sales to about 100,000 vehicles next year, Oh said.

The company plans to add revamped versions of the Optima midsize sedan and Sportage compact sport-utility vehicle in the U.S. next year, as well as a new premium sedan, the Cadenza, and a 5-door version of the Forte compact car.

Kia aims to increase its U.S. dealerships 15 percent from last year to 715 in 2010 by winning former sellers of U.S. automakers, according to the company. The carmaker plans to begin mass production this month at its first U.S. factory, in the state of Georgia, where the company will build Sorento SUVs.

Kia rose 0.3 percent to close at 18,350 in Seoul trading. The stock has almost tripled this year, compared with the key Kospi index's 40 percent gain.