Kia Motors announced its has increased its sales on the global market by 21 percent in the period between April to June. However, a much more note-worthy result was achieved by the South Korean carmaker on American soil, where the company reported an impressive 67 percent increase in profits and 36 percent in sales, due to demand for the Optima sedan and Sportage SUV.
According to Bloomberg, sales momentum in the US will slip in the third quarter, as Japanese automakers return production to normal levels after the March earthquake. “As long as the company retains the current sales volume, the impact on profits will not be that big,” said said Yim Eun Young, an analyst at Dongbu Securities. “What Kia has to look out for in the second half is the impact of the strong Korean currency.”
However, this doesn’t actually mean sales will not be as impressive, because the company announced last month that it would increase its overall targets for the year. US production of the Optima at the company’s plant in Georgia starting in September is sure to create better supply, which should translate into bottom line figures.
The sales of vehicles produced in the U.S. almost doubled in the second quarter from year earlier, according to the carmaker. Kia’s market share also rose to 3.9 percent in the first half from 3 percent a year earlier, the company said today.
The company’s global sales rose to 621,000 units in the April to June period, 21 percent more than the previous year. This was also helped by an 18 percent increase in China, where 190,000 units were delivered.
[Source: Reuters]
Monday, August 1, 2011
Kia's US Sales Jump 36% in Second Quarter
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