CEO Message

In 2010, Kia Motors’ performance surpassed market expectations with one record high after another. It was the result of many years of sustained and concerted effort to strengthen the company’s foundation and core competencies. Our stellar performance enabled us to secure additional resources that added further momentum to our CSR and environmental efforts. In 2011, we will strive to sustain our growth while also trying to take it a step further by devising and implementing ways to share our gains with stakeholders and contribute to sustainability.

Despite cutthroat competion in the global market, Kia Motors recorded its best-ever performance across the board, from sales and production volume to sales revenue and profit. With the successful release of our new models, including K5 (Optima) and Sportage R, we surpassed the 2 million-unit mark in terms of sales volume and entered into the ranks of the global top 10 automakers. For the first time in 20 years, labor and management managed to negotiate a strike-free deal, which improved labor-management relations and led to significant improvements in HPV (hours per vehicle) and other productivity indicators.Continued efforts at quality management have resulted in the steady rise in external quality indicators. As for design management, the fruits of our labor have materialized in the form of domestic and international awards as well an increasingly concrete design identity unique to Kia. Our newly-released models have received stellar reviews from Korean and overseas ratings agencies for their performance and design. We have also witnessed a dramatic improvement in the awareness of the Kia brand at customer contact points

It is impossible to sustain the kind of economic development that destroys the environment and lowers the quality of life for future generations. That is why Kia Motors is committed to combating climate change. We are continuously striving to lower CO2 emissions by developing high-efficiency engines and lighter vehicle bodies. In 2011, we plan to unveil a compact urban electric CUV and the K5 Hybrid, which will boast the world’s highest level of fuel economy and performance. We will continue our R&D efforts to safeguard the environment while securing a competitive edge to shape the future of the automotive industry.

Kia Motors has devised systems and procedures for green growth. We introduced an environment monitoring system to decrease pollutants generated in the course of the automotive production process. All Kia Motors worksites around the world carry out greenhouse emissions assurance. We have been engaged in steadfast efforts to decrease greenhouse emissions by curbing energy consumption. To realize resource circulation, we have continuously striven to reduce waste and reuse wastewater.

Kia Motors recognizes the fulfillment of our corporate social responsibility as the source of sustained and long-term growth. Accordingly, we practice socially responsible management in order to grow and share with our employees, partner companies, shareholders, customers, and local communities.
One of the most notable achievements of 2010 was the great advances in labor-management relations, which highlighted our efforts at promoting a corporate culture of mutual respect and trust. We turned ‘New Kia’ into an enterprise-wide campaign to foster creativity and vibrancy in the workplace. We have also extended to our partner companies a wide range of support programs and funds to promote mutual growth. To foster sharing and communication with local communities, we have set up social outreach centers at three of our production facilities in Korea through which we carry out localized community service activities. In recognition of these efforts, we were incorporated into the 2010 DJSI (Down Jones Sustainability Index) Asia Pacific.
Based on our progress thus far, we will strive to secure driving forces for future growth through brand value innovation and enhanced profitability while also working even harder to solidify the foundation for sustained growth. We will add momentum to our global social outreach activities to extend support to those in need. We will also partake in the effort to protect our planet by developing green products and setting up a clean production system. Kia Motors pledges to put our all into realizing sustainable development and fulfilling our social responsibility.