KIA MOTORS MAGAZINE

Optima Hybrid powers Kia into the ‘EcoDynamics’ era

• 2010: A year of milestones in Kia’s ongoing success story • A Chat with Claire Chai, Senior Vice President of Brand & Marketing • Kia Motors 2.0: Engagement through social media • Kia Motors Russia fortifies leading position in the Russian market Winter 2010/2011 35 _ Volume

KIA PLAZA VOLUME 30 01 MESSAGE FROM THE VICE CHAIRMAN

“ The Kia brand today finds itself standing at a very important crossroads… ”

Greetings to everyone in the global Kia family !

I would like to take this opportunity to express my sincere appreciation for your ongoing support and cooperation in building the Kia business around the world. Your hard work and dedication have not only enabled the Kia brand to steadily rise up the global automotive ranks despite the recent global financial crisis, but also have contributed to laying a strong foundation for continued achievements in the face of fierce competition.

The Kia brand today finds itself standing at a very important crossroads both internally and externally. While we have set ambitious internal targets to further expand our global operations through strategically enhancing all of our quantitative and qualitative competencies, we must also confront many changes brought on by the paradigm shift taking place in the auto industry.

I would like to emphasize three main pillars of our business that we must strengthen if we are to reach our future goals. First is the successful launch of our new products, which will form the basic foundation for our competitiveness in the market. Next is the need to bolster our marketing activities to continually increase Kia’s brand awareness. And lastly is the continued investment in enhancing our dealer network to ensure improved customer satisfaction in all corners of the world.

All of us at KMC are more than prepared to provide you with all of the support needed to ensure continued success during this critical turning point for the Kia brand. Meanwhile, I cordially ask for your ongoing hard work and close cooperation, which will be indispensable if we are to truly show our brand power to customers around the world.

I would also like to encourage all of you to continue to be proactive in your daily responsibilities on behalf of the Kia brand in your local markets. In particular, we at KMC would like to see more aggressive pre-marketing activities unfold for our new generation of models, as the competition in the industry is expected to be intensified in the coming year and it is imperative that we make our voice heard loud and clear. I believe that we must start selling even before we produce if we are win top of mind awareness for our new products.

There is a saying that one should not become complacent but rather stay alert even in times of smooth sailing. On that note, we should not be satisfied with our current performance. Rather, we must prepare for the future based on harmonious communication and mutual cooperation so that all of us can effectively contribute to realizing our dream of growing Kia into a top global brand in the not so distant future.

Yours sincerely,

Tae-Hyun (Thomas) Oh Senior Executive Vice President & COO Kia Motors Corporation

02 KIA PLAZA VOLUME 35 COVER STORY

ia Motors Corporation recently took another major step towards Optima Hybrid powers Kia K its goal of manufacturing and marketing ‘environment-friendly’ personal transport for future generations. In into the ‘EcoDynamics’ era November 2010, it held the world premiere of the all-new Optima Hybrid sedan at the created using a 1.6-liter gasoline engine blend of performance – acceleration to 62 Los Angeles Auto Show in the USA. and a 15kW electric motor. mph (100 kph) in 9.2 seconds, top speed of

Propelling Kia forwards into its More recently, Kia invested ‘EcoDynamics’ era, the Optima Hybrid has approximately USD180 been created primarily with the US market million to develop the eco- in mind. Scheduled for mass production in friendly Forte LPI (Liquid the first quarter of 2011, it employs a truly Petroleum Injection) innovative Kia-developed hybrid powertrain Hybrid. On sale in Korea that delivers a unique blend of high since July 2009, the 4-door performance and class-leading fuel efficiency. sedan was Kia’s first commercialized hybrid Hybrid cars and ‘EcoDynamic’ features are electric vehicle (HEV). not entirely new to Kia, but the new Optima Hybrid raises Kia’s green credentials to a Kia’s first-ever hybrid for new level. Earlier Kia hybrids were based customers outside Korea on its smaller family cars, such as the Rio, For North America, the and were manufactured in small numbers 2011 Optima Hybrid is the for use as research vehicles and Kia’s first-ever hybrid and ▶ The Forte LPI Hybrid is the world’s first hybrid vehicle to run on technology demonstrators. Later prototype uses a ‘full parallel hybrid liquid petroleum gas. hybrid versions of the Soul and cee’d were system’ to deliver a unique

KIA PLAZA VOLUME 35 03 COVER STORY

121 mph (195 kph) – and fuel economy, Seamless driving for everyday motoring functions as a generator to re-charge the achieving a 40.7% mpg improvement When setting off, the Optima Hybrid battery pack if the state of charge is low compared with a regular Optima. operates in Electric Mode. As vehicle and when the car is stationary. speed rises, the Hybrid Starter motor/ Throughout the entire driving experience – “In 2011, Kia Motors will be proud to start Generator (HSG) starts the gasoline in everyday motoring and under all sales of its first-ever hybrid to consumers engine and the clutch is closed, allowing conditions – the entire hybrid operation is in the the North American market,” the engine to take over the task of automatic and seamless. comments Hyoung-Keun Lee, Vice Chairman propelling the car. The electric motor of Kia Motors Corporation. “The new switches into hybrid operation and An unusually responsive and rewarding Optima Hybrid is packed with innovative serves as both a secondary engine drive is guaranteed by the Optima Hybrid’s technologies that demonstrate Kia’s (during full acceleration and hill- 30kW Interior Permanent Magnet (IPM) on-going commitment to investing in climbing) and a generator to recharge synchronous electric motor, which R&D and to developing environmentally the battery pack as necessary. Whenever produces 40.7 ps and 205 Nm of torque friendly vehicles for the future. The Optima the car comes to a stop for more than a from 0-to-1,400 rpm in electric mode, and Hybrid delivers a fully automatic, seamless few seconds, the gasoline engine the combined (electric motor plus and enjoyable drive, together with real- automatically shuts off to completely gasoline engine) hybrid powertrain boasts world benefits for our customers.” eliminate emissions. output of 209 ps and 265 Nm.

The Kia Optima Hybrid is equipped with an State-of-the-art, high power battery pack ingenious, simple and cost-effective ‘parallel Kia’s Optima Hybrid employs a lithium hybrid system’. The 2.4-liter gasoline engine polymer battery array developed in is mated to a small electric motor and drives partnership with LG Chem. Lithium the front wheels via a six-speed automatic polymer offers the benefits of lithium-ion transmission – without the traditional (used in laptops and cell phones), but adds torque converter. A special clutch is fitted robustness and packaging flexibility, between the gasoline engine and the making it ideal for automotive applications. electric motor, enabling the gasoline engine These new batteries provide an optimum

to be de-coupled from the powertrain so ▶ The center console display shows the energy flow balance between power delivery, energy that Optima can be operated in zero- from the motor and instantaneous fuel economy density and thermal stability. while the Earth icon changes in size depending emissions, full-electric drive mode from on the level of eco-friendly driving achieved. standstill up to 62 mph. Furthermore, the Compared with nickel-metal hydride system’s configuration does not require batteries, lithium polymer batteries are a high-capacity electric motor and generator, When braking, the electric motor converts 20-to-30% lighter, occupy 40% less thereby saving weight and cost. kinetic energy into electricity for storage in volume and are 10% more efficient. They the battery pack. The 8.5 kW HSG also also hold their charge for 25% longer and are so reliable that the Optima’s battery pack will not need replacing during the vehicle’s lifespan of at least 10 years and 150,000 miles.

Using this new type of battery enabled Kia engineers to create a lighter, more compact power source – with a 34 kilowatt output and weighing just 43.6 kg (95.9 lbs) – to minimize intrusion of the Optima’s trunk space.

The complete hybrid system is controlled by the Optima’s Hybrid Control Unit (HCU) which acts as the car’s mastermind and integrates the smooth operation of the engine’s ECU, transmission’s TCU, battery management system (BMS), and low voltage converter (LDC). This central ▶ Our engineers succeeded in developing our very own electric motor using in-house developed proprietary technologies. nervous system also gives the Optima ‘Fail-Safe’ back-up capability and a ‘Limp- home’ mode.

04 KIA PLAZA VOLUME 35 COVER STORY

Optimized Theta gasoline engine Taking advantage of the instant and continuously available torque from the electric motor, Kia modified its popular 2.4-litre Theta II engine to maximize efficiency and achieve 10% fuel savings over a regular Theta engine.

▶ Engineers discuss the design of the active air flap, an innovative feature that efficiently controls the amount of air that enters the vehicle, thereby improving fuel efficiency and environmental friendliness of the Optima Hybrid.

power steering and an electric air cell electric vehicles) in Korea and compressor capable of delivering high air - across the USA as part of its long-term conditioning performance. research aimed at manufacturing both ultra-low and zero-emissions products Aside from its unique hybrid powertrain for the future. ▒ the new Optima Hybrid incorporates all For the Optima Hybrid, Kia has modified the technical features and the multiple the six-speed automatic transmission choice of premium comfort and found on the conventional Optima for convenience equipment offered by its hybrid application. The traditional torque regular stablemates. converter is replaced with an electric motor and a high-efficiency oil pump. Evolving Kia’s ‘EcoDynamics’ era This allows EV mode operation, A product of Kia’s Namyang R&D maximizes regeneration of kinetic Center near Seoul and a unique energy during braking and also provides collaboration between numerous Kia a more responsive drive than a CVT system. facilities around the world, the ‘full parallel hybrid system’ created for the To maximize the Optima Hybrid’s Optima Hybrid will be further developed performance and minimize fuel for use in forthcoming Kia models consumption, special attention has been during the next decade. paid to its aerodynamics. Alongside Kia’s hybrid program the The car is lowered by 5 mm and new company is continuing to operate a large features include an fleet of Mohave (Borrego) FCEVs (fuel ‘active air flap’ in the 206 front grille, smooth Optima Hybrid Camry HEV Altima HEV Fusion HEV 198 191 underfloor panels, low- 187 System & Performance drag wheels and low rolling resistance tyres. Hybrid System Type Parallel Hybrid Power Split Type - - The drag coefficient is Hybrid System Power Output 206hp 187hp 198hp 191hp lowered to a remarkable Engine Theta II 2.4L MPI I4 2.4L MPI I4 2.5L MPI I4 2.5L MPI Optima Camry Altima Fusion Cd 0.26. Engine Power Output 166hp 147hp 158hp 156hp Hybrid HEV HEV HEV 40 Transmission 6-speed AT E-CVT - - Energy and fuel-saving 36 Motor 30kW (40.2hp) 105kW (141hp) 105kW (141hp) 80kW (106hp) 34 33 technologies features in Battery Li-PB 34kW Ni-MH 26kW Ni-MH 30kW Ni-MH 25kW the Optima Hybrid US EPA Fuel Economy (city/hwy) 36mpg / 40mpg 33mpg / 34mpg 35mpg / 33mpg 41mpg / 36mpg include a regenerative Top Speed 195km/h 190km/h 188km/h - braking system, 0 > 100km/h 9.2 sec. 9.3 sec. 8.8 sec. - Acceleration electric – rather than Optima Camry Altima Fusion 60 > 100km/h 5.6 sec. 5.6 sec. 4.7 sec. - HEV HEV HEV hydraulic – assisted Hybrid

KIA PLAZA VOLUME 35 05 A YEAR IN REVIEW

2010: A year of milestones in Kia’s ongoing success story

ooking back on 2010, one would be hard pressed to find any industry L insider who could refute that Kia Motors has truly arrived as a bona fide global automaker. 2010 was a year in which Kia won over the hearts of an increasing number of consumers around the world; and the efforts of the entire global Kia family have catapulted the brand into the upper echelons of the industry. Indeed, Kia closed out the decade with a bang!

In fact, Kia has now joined the ranks of only a handful of automakers that have eclipsed the two million unit annual sales mark. This means that for the first time Kia will join the ranks of the global top 10 automakers. Ever new products have won the world’s most manufacturing plants in the world’s strategic since Kia global sales hit the one million unit influential design distinctions like the red dot automotive regions. In particular, the year mark back in 2005, the company has enjoyed and IF awards in Germany and the Good 2010 saw the stabilization of operations at Kia steady growth fueled by a strong emphasis Design award in the USA. Motors Manufacturing Georgia (KMMG) in on quality and design, aggressive brand the USA which is Kia’s latest cog in its global management and globalization of the expansion plans. The success of this facility business. and the crucial role it plays in the all- important U.S. market can been seen by the Kia Global Retail Sales Trend KMMG-built Sorento becoming Kia’s best- 2,089,355 selling vehicle for 11 consecutive months in the U.S. as well as the first Kia vehicle to 1,651,920 eclipse the 100,000 unit mark in the U.S. in 1,375,738 1,269,164 one year. 1,225,492 1,187,412

2005 2006 2007 2008 2009 2010 Meanwhile, global recognition of the Kia brand grew by leaps and bounds in 2010, Many of Kia’s competitive new vehicles are spurred on by Kia’s sponsorship of the FIFA now considered segment leaders in style, World Cup 2010 in South Africa last summer quality, safety, convenience and new when the entire world got a chance to see technology; and the huge spike in the Kia’s affiliation with the world’s greatest ▶ The Pride of Georgia: Kia Motors’ first U.S. plant in Georgia churned out over 100,000 number of major accolades won, including sporting event. The company recently Sorento CUVs in 2010. various Car of the Year distinctions, is proof announced that it will sponsor the 2018 and positive of just how far Kia has come in just a 2022 World Cups in addition to the existing Indeed, 2010 was a year to remember for Kia few short years. The company now finds itself agreement to sponsor the 2014 World Cup in Motors, but there appears to be no slowdown standing at the halfway point of its ongoing Brazil. So Kia looks forward to engaging on the horizon for the momentum that the new product offensive, which runs from 2009 football fans around the world throughout the brand has created in all markets around the through 2012. If the rapid improvement in coming decade. world. If the success and achievements Kia’s recently launched new generation of enjoyed in 2010 can be replicated in the vehicles is any indication of things to come, The past few years have also seen Kia’s coming years, don’t be surprised if Kia is the next two years is sure to give the Kia ‘glocalization’ strategy – ‘thinking globally but standing at the top of the industry sooner worldwide family much to be excited about. In acting locally’– make significant strides with than anyone could have imagined. ▒ particular, on the design front, several of Kia’s the establishment state-of-the-art

06 KIA PLAZA VOLUME 35 EXECUTIVE FOCUS

engage in a relationship with our brand. Do you see any new trends in branding or Therefore, our priority is to build a brand marketing that you think we should jump story which is distinctive, compelling and on in order to differentiate ourselves sensible. from other automakers? In the future, consumers will continue to I want people to think of Kia as being not only search for the best value but also charismatic, passionate, adventurous, favor brands that are socially responsible honest and humble. As such, my first and environmentally conscious. The main priority is to improve our brand image change will be the way brands worldwide. We need to associate our communicate with consumers. We have brand with memorable products, actions already moved from a one-way and benefits. We need to be the brand monologue to cross-dialogues with that first introduces new ideas, values numerous stakeholders. and experiences. Furthermore, as we have now entered the What do you see as the biggest digital era, consumers are demanding differences and biggest similarities that companies engage in their conversations between branding at L’Oréal and Kia? anytime, anywhere through numerous The biggest difference is that at L’Oréal channels, on-line or off-line. We are we launched products that range from exploring various digital tools which USD10 to USD200. At Kia, the products enable us to listen closely to what our cost anywhere from USD10,000 to costumers have to say and interact with A Chat with Claire Chai, Senior Vice President of Brand & Marketing

ia Plaza recently sat down with USD40,000. It’s a much longer term them in a way that will let us win over their Claire Chai, Kia Motors Corporation’s commitment for our consumers, so we minds and hearts. K Senior Vice President of Brand & have to pay much more attention to our Marketing, to discuss where she would perceived brand value. Like cosmetics The winning brands of tomorrow will be the like to lead the Kia brand in the future. buyers, car buyers make not only a ones that succeed in attracting consumers’ Ms. Chai joined Kia in March 2010 from rational decision but an emotional one as attention with a story that stands out and L’Oréal Korea and has already instituted well. Therefore, when we present the resonates in their hearts. several significant changes that have Kia story to consumers, we have to placed Kia on a new track towards remember that we do not simply make What’s it like as a woman at Kia? What becoming a globally respected brand. cars – but that we are bringing happiness advice do you have for other women As the organization’s most senior-ranking to people’s lives. within the organization or industry? woman, she has spent many years outside Being a woman in such a male dominated of Korea, which offers Kia a fresh, new What do you feel Kia has done well until company like Kia was intimidating at first. perspective. Here are her thoughts on now, and what in what areas would you But I tried to always be myself and focus making Kia’s future a little brighter and like to see the brand improve? on my mission. Having grown up in many a little more narrative. We have already begun producing global different countries with so many people vehicles with outstanding quality that are from different cultures, I consider myself Why is it important that consumers build fun to drive and with the best in safety to be quite open-minded. an emotional connection with the Kia features. Also, our design has improved brand, and what will it accomplish? dramatically over the last three years as If I were to give a piece of advice to other Building that emotional connection with seen by the numerous design awards women, it would be to keep an open mind customers is important as it provides from world-renowned institutions. towards new challenges, opportunities, a strong and unique brand appeal. In people and innovative ideas. In the corporate order to stand out from the numerous car The main challenge now is to establish world, you need to impress people with brands, we need to tell a story that a positive, long-lasting conversation with actions, and keeping your channels open customers can relate to. Unless they are our consumers by projecting the types of will help you accomplish that. ▒ touched by our story, customers will not values people will embrace.

KIA PLAZA VOLUME 35 07 SPECIAL REPORT

Kia Motors 2.0: Engagement through social media

ometimes the simplest decisions avenue to share in their own experiences As with any social media, this new step can lead to the biggest changes. with other Kia drivers. One of the initial into the social media realm left the S When Kia Motors headquarters visitors commented, “Thank you, Kia, organization open to both praise and in Seoul first decided to introduce a for starting this blog so that us Kia critique to which it needed to respond. For global corporate blog in 2007, little did owners can share our ownership the continued evolution of the Kia brand, they know that it would lead to a experiences.” Another fan mentioned, this has been an especially difficult aspect revolution in how the company engages “A car company who actually has initiated of social media as conversations move with its public through social media. The informal discussions with its potential quickly and the company’s growing brand seeds of Kia Motors 2.0 were sown! customer base is truly inspiring.” This status could be sullied very quickly. For was exactly the type of positive response some markets the risk was too great and Kia’s corporate blog – Kia BUZZ – was Kia hoped for as the brand ventured they opted to remain out of the social the very first English-language blog forth into an largely unknown and open media circle. For others, it seemed that from an organization in Korea which digital arena. the rewards were too great for them not to allowed the content to be accessible be a part of the online conversation. From from many countries around the world. For almost one year, the Kia blog was headquarters’ perspective, it was The very first blog post was made by the only social media channel though important to lead the change. Kia’s President and CEO at the time, which consumers could interact with the Euisun Chung, who wrote about the brand, and it was still limited and slower importance of opening up Kia’s than real-time social media. As such, channels of discussion and dialogue Kia introduced video content to the blog with drivers around the world. He wrote, through Kia’s own YouTube channel “Information is passed on and shared at (www.YouTube.com/KiaBUZZ). Access a phenomenal rate thanks to the way in to Kia by fans was now much more which the internet is evolving as a direct and conversations could flow communications tool. A famous between drivers in real-time. More University of California at Berkeley study importantly, these conversations were estimated that today we develop the not being vetted by Kia staff and were same amount of information and ideas much more open due to that fact. in one year that took us 25,000 years to accumulate in the past. Never before has the pace of innovation and technology moved so quickly.”

His wish was also to open discussions and the feedback loop at a much faster rate. “Kia BUZZ is our first true foray into the world of web 2.0. The nature of this blog will evolve over time, without a doubt, and we hope that through your comments, feedback and shared thoughts we will continue to provide an engaging and interesting read,” he said.

The initial response to the blog was met warmly among fans and members of the blogosphere. Not only did headquarters realize that this was a perfect avenue to engage consumers in ▶ KMC Overseas Communication Team staff members, with the support of top management, conversations about Kia products, but have embraced social media as a vital brand building tool in today’s era of Web 2.0. fans quickly realized that it was an

08 KIA PLAZA VOLUME 35 SPECIAL REPORT

account, Kia Motors tweets just strictly using Facebook and Twitter. As a about all news and activities of result, substantial media attention and interest along with embedded consumer buzz was achieved ahead of links to relevant Kia articles or the Santiago Motor Show a month later. reviews, design info, interesting Through a series of videos and a live chat polls or quizzes and its other option, they held an online press conference social media spaces. Kia for fans and reporters through Facebook. It was offices from around the world the first time an organization in Chile had tried have also delved into Twitter that approach through the social network. and have run online promotions and contests Kia Motors is a company that lends itself to inviting people to interact new and innovative ways of inviting people offline with the brand, like to experience the brand and develop an Singapore’s “Soul Train” new emotional connection. Social media is the media campaign, for example. perfect interactive tool to help propel the After its foray into YouTube, Kia joined brand forward with a younger generation Twitter in 2008 (@Kia_Motors) which The appeal of social media is not only the that is becoming increasingly dependent provides snapshots of information to way one service interlinks with the other on the online experience. For those Kia fans. Twitter remains one of the but how each social media site can be responsible for creating this connection, more difficult social media used differently from the other. One it is important to engage Kia consumers communication tools in terms of ROI example is the automatic update function through social media since it will only measurement. Businesses have slowly between Twitter and Facebook. When a continue to evolve and grow. As it does, caught on to the benefits of Twitter even status update is made on a Facebook Kia Motors is in the position to grow with though the company claims that it page, the associated Twitter account is it and learn how to position its brand connects businesses to customers in automatically updated, and vice versa. within the middle of the conversations real-time. According to Twitter, However, Facebook is much more visual consumers are having about design, “Businesses use Twitter to quickly and interactive than Twitter. As such, the environment-friendlier technologies and share information with people Kia Motors Worldwide Facebook global fan the car ownership experience. In 2011, interested in their products and page was the next logical step to strengthen KMC will strive to improve its social media services, gather real-time market Kia’s overall social media presence. presence by allocating more budget to intelligence and feedback, and build social media activities, producing more relationships with customers, partners The page began in earnest in July 2010 user-friendly content and enhancing its and influential people. From brand lift, with a focus on Kia’s FIFA World CupTM story-telling on new product technologies to CRM, to direct sales, Twitter offers sponsorship activities including a CSR through multiple channels. businesses a chance to reach an initiative that encouraged fans to donate to engaged audience.” the Kia Street Soccer program in South To manage the reputation of the organization Africa by inviting ‘friends’ to become a fan and maintain relevancy with the core group of Tweets are at the heart of Twitter and of the page. Each new friend added social mediaphiles, the plunge into the world of can be described as small bursts of USD1 to the pot and allowed Kia Motors social media is a challenge that Kia is taking information. Each Tweet can be up to Corporation to donate a total of USD32, 492 head on. Are you ready for the challenge? ▒ 140 characters in length which bodes to the cause to promote sport, education well for business as a lot can be shared and health among underprivileged South within a small space. Connected to African youth. With the conclusion of the each Tweet is a rich details pane that World Cup 2010, the focus switched to Kia provides additional information, deeper corporate news and activities including context and embedded media. Twitter new product previews and photo contests. describes their service by saying, “You can tell your story within your Tweet, or Since Facebook allows fans in every corner you can think of a Tweet as the of the world to access its content, the way headline, and use the details pane to in which brands like Kia engages its public tell the rest with photos, videos and relies heavily on how well it can use its other media content.” As of September features, and how it can differentiate from 14, 2010, Twitter had 175 million other available content. For example, registered users and hosted 95 million ▶ Kia Motors Chile has taken the lead in South America by leveraging Kia Motors Chile decided to launch the social media as a core component of its new vehicle launch strategy. tweets per day. all-new Sportage to the local market Since creating its own corporate Twitter

KIA PLAZA VOLUME 35 09 COUNTRY SPOTLIGHT

Kia Motors Rus fortifies its leading position in the Russian market

look at the numbers: Stellar the launch of the all-new Sportage was the car magazine. According to the results of sales results ‘Master of Elements’ media test drive which Quttroruote’s proving ground trials conducted A Kia Motors has taken up a leading allowed top journalists to experience the in Vairano, Italy in 2010, the Kia Sorento 2.2 position among vehicle importers in the vehicle in diverse road conditions and terrain CRDi and Kia Mohave received 77 and 80 Russian market. In September 2010, 10,507 (high quality paved roads, poor quality asphalt points, respectively, out of 100 possible points. Kia cars were sold, which is a 65% increase roads, gravel roads and dirt roads) over an 830 compared to the same month of 2009. This km route that ended in Caucasus, Russia. result enabled Kia to garner second place According to the participating journalists, among foreign brands with a market share of the car performed remarkably under all 5.7%. Cumulatively for the first nine months of surroundings. 2010, 77,745 Kia cars were sold in Russia for a 63% increase compared to the same period of the previous year. The most popular Kia models among Russian automobilists during the first three quarters of 2010 were the Rio (22,146 units sold), cee’d (19,527) and Sportage, which has conquered first place among all foreign SUVs, posting ▶ KMRus President Terry Im (right) proudly accepts sales index 15,037 units. awards for the Sorento and Mohave from the leading 4x4 magazine, Quattroruote. Kia Motors Rus (KMRus) is well on track to eclipse its stated goal for 2010: to sell 100,000 The future looks bright: Locally produced cars in Russia. new model to boost Kia’s fortunes Russian industry experts seem to agree that All-new Kia Sportage: Off to a great start Kia Mag: An effective communication tool Kia is well poised to further strengthen its Especially high hopes have been placed on with consumers position in the local market. These the all-new Kia Sportage, which has seen To enhance the distribution of information prognostications are closely tied with the great demand from the very start of sales in among customers, Kia Motors Rus launched Hyundai assembly plant recently completed September when 2,000 units of the compact its corporate magazine – Kia Mag – in October. near Saint Petersburg which will also produce crossover were sold. This is an undeniable Unlike other similar titles, the purpose of Kia a new city compact Kia vehicle especially success story in Russian market; and the Mag is not only to present interesting insight designed for Russian consumers starting in interest in this car is continuing to gain into the Kia brand and products, but to sink late 2011. According to Mr. Im, “Official momentum. readers into the atmosphere of an exciting industry data clearly shows that cars and adventures lifestyle. Kia Mag will be assembled in the Russian territory are more According to Terry Im, President of KMRus, distributed to official Kia dealerships quarterly popular among local consumers, and we “The popularity of Kia’s latest crossover is with a circulation of 12,000 copies. expect to maintain our leadership position in explained by its striking design, great ride the market thanks to the forthcoming characteristics and reliability. These product Professional credentials: Quattroruote production of Kia vehicles at the new Saint characteristics were confirmed by the unique certificates for Kia SUVs Petersburg plant.” ▒ Seoul to Moscow run held in August, during The telling sign that Kia produces high quality which a caravan of three Sportages traversed automobiles is when Russian consumers vote some 12,000 kilometers of roads in South for Kia cars with their wallets. And this Korea, China, Mongolia and Russia without a confidence in Kia has been confirmed by the single failure.” numerous awards regularly bestowed on the brand. The most recent of these were given to Another robust activity conducted to support Sorento and Mohave SUVs by Quattroruote

10 KIA PLAZA VOLUME 35 GLOBAL KIA VILLAGE

Experience Kia in France

of the Soul community, industries. This was a young-at-heart approach Kia Champ Into the to developing individual relationships with Arena and several other bloggers and gain trust among their online local blogger activities, readers and followers. KMF launched “Experience Kia” in August 2010. Bloggers responded well to this new approach and spent a fun-filled day enjoying the More than 90 print and Sportage. Their blog entries were all positive TV journalists were and their followers were able to join their live invited to the national experience through their updates on Twitter, press launch of the all- Facebook, Foursquare and other social media new Sportage in Bilbao, channels (e.g. Twitpic, yfrog, etc.). The Experience Spain. In order to get people Kia program succeeded in increasing Kia’s talking and create buzz credibility among followers of France’s ia Motors France (KMF) is actively around Sportage, KMF preceded the event with influential blogs and has enabled the brand to engaging online bloggers and a casual, blogger event attended by eight of position itself as an innovative car manufacturer K pursuing consumer interactivity as a France’s top bloggers in the car, luxury, fashion, in the social media sphere. strategic brand building. Following the success design, marketing, high tech and lifestyle

Kia Motors, a leader in Sweden’s automotive scene

un-Young Kim, President of Kia Motors other speakers, including Bo Andersson, a small domestic brand manufacturing bicycles to Europe, and Paul Philpott, Chief President of GAZ (the biggest car maker in one of the fastest growing car brands in the world. S Operating Officer of Kia Motors Europe, Russia); Walter de’Silva, head of Group Design “Our goal is to become a top ten mainstream car were both invited to speak during the Stora Volkswagen; Andy Palmer SVP of Product brand in Europe,” said Mr. Philpott. Bildagen automotive conference in Stockholm, Planning and Head of Zero Emission Business Sweden in October 2010. As a strong up-and- Unit, Nissan Motor; and Stefan coming brand, this invitation was a lucrative Jacoby, President and CEO of Volvo opportunity to bring Kia to the forefront of the Car Corporation. industry in Europe. The financial crisis has of course The conference is held annually by Dagens affected the industry and during the Industri, the leading business daily in first day of the conference, speakers Scandinavia, and has become one of the most discussed the global challenges important meeting points in the region for the facing the industry as well as the automotive industry. future of electric-powered vehicles. ▶ Sun-Young Kim (left), President of Kia Motors Europe; Paul Philpott (center), COO of Kia Motors Europe; and Hakan Conference moderator, Håkan Matson, Sun-Young Kim and Paul Philpott Matson (right), President of Car of the Year; enjoy a light President of Car of the Year, interviewed Mr. Kim discussed Kia’s success in Europe moment during the Stora Bildagen automotive conference. and Mr. Philpott along with the conference’s and how Kia has quickly grown from

KIA PLAZA VOLUME 35 11 GLOBAL KIA VILLAGE

Kia Netherlands continues support of worldwide speed skating

or the past seven years, Kia has been says S.H. Chang, President of Kia Motors Sang-Hwa Lee, Olympic Champion and female very closely involved in international Netherlands. “In the Netherlands, speed skating 2010 World Sprint Champion. F speed skating and has so far is the second most popular sport, and the supported some 200 skaters from 30 countries. affinity with speed skating is also very high In October 2010, Kia Motors Netherlands in other countries. It gives us a great deal of signed a two-year agreement to continue its satisfaction to see that many international sponsorship of many of the world’s top speed speed skaters are able to reach the top of their skaters. Kia Motors Europe is also involved in sport partly thanks to our support.” the new two-year contract through which the Kia logo will be worn on all the skaters’ outfits During the 2009-2010 season, a Kia-sponsored while the brand will act as the official car speed skater made it to the winners’ platform supplier. Kia will be also be involved as a on 165 occasions, 55 of whom finished in first partner in various national team events. place. Well-known skaters who can count on support from Kia include the German Jenny “Kia is the only car manufacturer to have been Wolf, the current world record holder and ▶ Seated from left to right, S.H. Chang (President, Kia Motors Netherlands) and Marnix Wieberdink (Managing involved for so many years in worldwide speed winner of various 500 metre World Cup Director, Sport Navigator). Standing from left to right, skating, which has made a considerable competitions; the Korean Kyuo-Hyuk Lee, male Cor Baltus (Managing Director, Kia Motors Netherlands) contribution to the development of our brand,” 2010 World Sprint Champion; and the Korean and Huib Stad, (Director Marketing, Kia Motors Netherlands).

Kia Germany supports Mongol Rally 2010

he Mongol Rally, one of the world’s explained. "Our competitors were even envious The Kia Rio remained in Ulan Bator and was given most adventurous rally competitions, because of the spaciousness of the Rio." away at an auction. T challenges competitors with a 17,000 km route from London (UK) to Ulan Bator Since the road conditions (Mongolia). In the 2010 edition, 500 teams took are so different to on the challenge to find their way to Ulan Bator mainstream rallies, the without any technical assistance like navigation Mongol Rally has a systems or technician support. Brothers Daniel unique awards system. and Sebastian Kaerger from Germany competed Recognition is not only in the rally with their eight year old Kia Rio. The given to the first place race had two major requirements: the finisher, but to all teams competing vehicles needed to have an engine that reach the finish size of no more than 1,200 cc and be less than line. The Kaergers 10 years old. donated their winnings to Mercy Corps, a Kia Motors Deutschland supported the team of Mongolian organization two brothers by preparing the vehicle for its that supports schools, journey. "In comparison with other teams’ kindergartens as well vehicles, the Kia Rio did very well," Daniel as families.

12 KIA PLAZA VOLUME 35 GLOBAL KIA VILLAGE

Kia Netherlands continues support Kia Canada helps of worldwide speed skating young football athletes

n a partnership with Toronto’s Parks, improve communities in Canada,” Forestry and Recreation Department, said Maria Soklis, Vice President and I Toronto FC and the MLSE (Maple Leaf Chief Operating Officer of Kia Canada Sports and Entertainment) Team Up Foundation, Inc. “We are proud and excited to Kia Canada Inc. unveiled two newly refurbished assist with the refurbishment at G. soccer pitches at a local park. The refurbishment Ross Lord Park for the players, represents the sixth sports facility this year to friends, neighbors and family that will benefit from the MLSE Team Up Foundation’s enjoy this soccer pitch into the future.” hockey rink, basketball court and soccer pitch legacy program. The MLSE Team Up Foundation with the support of Toronto FC’s Corporate Toronto FC’s Stefan Frei, Chad Barrett and their Partner Kia Canada invested more teammates led youth from a local camp and a than CAD60,000 in significant U12 boys team through a series of drills during upgrades and improvements to the the hour-long event. The U12 team had won park, including the installation of new turf to illustrate the importance places such as the chance to play with Toronto FC through key portions of the pitches, new player benches G. Ross Lord park play in shaping the lives of a contest run by Kia Canada Inc. “Kia Canada’s with awnings, repairs to the bleachers and a people in a community and cultivating the next commitment is to ‘Drive Change’ by helping to maintenance plan. The program aims to generation of players and coaches.

Kia Cold Hawaii PWA World Cup in Denmark

hen the ultimate competition in the entire tournament, Kia Import sport of windsurfing, the PWA Denmark had its own car exhibition in W (Professional Windsurfers Association) cooperation with one of its local dealers – World Cup, was held in Denmark last meaning that Kia vehicles were at the September, the event was title sponsored by Kia center of the event at all times. Import Denmark AS. Managing Director Mogens Lyngsoe found the Kia profile fitting for the Despite a slow beginning on the expression of windsurfing. “The dynamics, waters of the North Sea, the last courage, intensity and youthful atmosphere that three days presented competitors surrounds the sport of windsurfing reflects many with some of the best European of the same values very strongly felt by the people waves seen in recent PWA history. at Kia,” said Mr. Lyngsoe. The conditions ranged from cross-off perfection to violent cross-on euro In addition to the Kia logo being part of the style storm riding, enabling only the competition’s official title, the oval Kia logo was best all-around wave warrior to be visible on all sails, surfers’ jerseys, sponsor crowned after a full double elimination. Three- waters, followed by Victor Fernandez of Spain wall, beach flags, etc. Furthermore, surfers, time world champion, Kauli Seadi of Brazil, and Ricardo Campello of Venezuela. judges and other officials were all transported claimed the first ever Klitmoller crown after an in Kia vehicles throughout the event. During the amazing display of heavy hitting in the frigid

KIA PLAZA VOLUME 35 13 KMC UPDATE

The first application of the Red Cube design concept can already be seen in the domestic New global space identity: Korean market, along with Kia flagship dealerships in China and Chile. Going forward, Kia Motors plans to apply the Red Cube concept to all Red Cube domestic sales and points as well as overseas dealerships to provide an identical space experience for customers around the world. s the next step in its ongoing global The design concept will be applied to the overall design management strategy, KMC architecture and facilities space of Kia’s global A has begun to introduce a newly network of dealerships and service centers developed space identity to its sales outlets and including the exterior and interior design, as well as service centers around the world. furniture. The exterior employs cubes to convey ‘trustworthy,’ ovals and straight lines to portray The new space identity is based on the design ‘dynamic,’ while the interior was inspired by the concept ‘Red Cube’ which was developed to drifting racing technique to underline the ‘fun’ reflect the automaker’s core brand attributes of aspect of the Kia brand. trustworthy, dynamic and fun. The new design concept will allow employees and customers to KMC expects the unification of the space identity of experience the Kia Motors brand in a more its sales and service points in all markets to ▶ Kia Motors Chile recently celebrated the grand opening of its first flagship relaxed and familiar atmosphere while helping enhance its global brand power. Red Cube dealership in Vitacura on the outskirts of Santiago. to elevate brand recognition all over the world.

(Kia Motors Slovakia). Their responsibilities range from marketing and product planning to after 2010 Management sales service and procurement. The main purpose of the program is to allow local Exchange Program Kia subsidiary staff to gain an international perspective on the responsibilities they carry out back in their home markets. While at Seoul headquarters, they are integrated into related teams and participate in projects that have relevance to both the global business and their duties back home. At the end of the eight week program, they are invited to share some of their learnings with their respective KMC colleagues.

Another purpose of the program is to share intercultural experiences with their Korean colleagues at headquarters.

Mariël from the Netherlands took home fond memories of her stay in Korea and said, “Korea's kind people and advanced technology have been truly impressive and the 24/7 lifestyle of Seoul has given me so much energy. Being able to participate in global projects has also helped to develop my understanding of KMC and the or the fourth consecutive year, the Turner (Kia Motors UK, Ltd.), Mariël Vergouwe Korean culture.” Management Exchange Program hosted (Kia Netherlands), Elena Uchanova (Kia Motors F by the KMC Human Resources Team Rus), Henry Bzeih (Kia Motors America), Pavel With programs like these in place, Kia is has come to a successful end with participants Fohler (Kia Motors Europe), Christoph Schwarz committed to providing valuable global now having returned home. Participating in 2010 (Kia Motors Deutschland), Albert Chung-Ro Kim experiences and expanding opportunities for its were Mark Scigliano (Kia Canada Inc.), Paul (Kia Motors Central Europe), and Robert Bros staff around the world.

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consisted of key learnings from colleagues around the globe. By understanding local campaigns, and the challenges and successes in each market, participants could understand 2010 Global PR Conference how to apply Kia’s best PR practices to their own markets. This type of learning through experience and sharing is essential to Kia’s communications effectiveness and will allow for n 2006, the Overseas Communications Team Centre and the COEX Intercontinental Hotel. continued success of the Kia brand in the future. set out to improve Kia’s messaging and The conference introduced the communication I partnerships with its Public Relations teams strategies and product features of two upcoming around the world through the first global Public products (TA and UB), plus global plans for Kia’s Relations conference. In November 2010, the PR activities in 2011. KMC also invited two tradition continued with the annual Global PR major players in the PR industry, Bob Pickard Conference celebrating its fifth consecutive year from Burson-Marsteller and Charles Lankester and hosting 56 PR-related team members. This from Edelman, to discuss the emerging trends year also marked the introduction of the first PR of the profession and how to hone story-telling awards to recognize the work of those helping build skills as communications professionals. and protect Kia’s reputation around the world. Under the theme, “Sharing Best Practices,” it The 2010 conference was held in Seoul over two was important for the global team to learn from days at Kia headquarters, Namyang R&D one another and the majority of the conference

He took home USD3,000, the gold trophy and the Skill World Cup flag which he will hold until th the next event in two years time. 5 Kia Skill World Cup 2010 Each and every Kia technician who competed are winners who have earned the title of “Best of the Very Best” and represent Kia Motors on the frontlines of the business. These are the n October 2010, the Overseas Service Team Effective preparation, systematic approach, people our customers meet everyday and, hosted the 5th Kia Skill World Cup event at accurate diagnosis, correct use of tools, best therefore, are hugely important to the continuing I the Chon-an Training Center over two practice methods and attention to detail are just growth of brand loyalty among customers. days. 54 competitors representing 39 different some of the areas scored by the judges. countries came to showcase their skills for the prestigious title of the very best overseas General feedback on the event technician in the Kia family. Having already won was very positive with many their national competitions, the participants competitors being overwhelmed represented the top 0.3% of the Kia’s worldwide by the size and scale of the Kia service operations and came to Korea to vie for organization. All felt privileged to the ultimate title. be asked to be a part of this global event and for some this The competition included a multiple choice written was their first trip overseas. exam and six practical tests designed to challenge their skills in engine, chassis and electrical repair as The event ended with the farewell well as troubleshooting. The challenges were dinner and award ceremony at created to test the knowledge of the competitors the J.W. Marriott Hotel in Seoul and identify the most skilled of them all. Pressure where Senior Executive Vice was further increased as competitors had only 40 President & COO, Tae-Hyun Oh, minutes to complete each challenge. handed over the gold trophy and title of Skill World Cup Completing the challenges in the quickest time Champion 2010 to Jason Sherrill is no guarantee of scoring maximum points. representing Kia Motors America.

KIA PLAZA VOLUME 35 15 www.kia.com

Brilliance is technology and style

Ahead of its time ALL-NEW OPTIMA

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