Kia Enters Into Parts Supply Agreement

    IRVINE, Calif., March 15 Kia Motors America reached an
agreement with Hyundai Motor America on parts distribution that is expected to
improve its ability to supply parts to its customers quickly.  Kia already has
gained a reputation for swift, complete parts deliveries, but the company
believes the new agreement will enhance its ability to fill parts orders more
efficiently than ever.

    Under the terms of the agreement, Kia will begin using Hyundai's Aurora,
Ill., parts distribution center (PDC) on April 2 to supply 126 dealerships in
several Midwestern states.  At the same time, Hyundai will use Kia's parts
distribution center in Atlanta.  That facility will supply parts to
102 Hyundai dealers throughout the Southeast.

    The joint agreement will allow both Kia and Hyundai to provide parts to
its dealer service operations and consumers faster, while simultaneously
reducing overhead costs, freight and shipping expenses.  Kia and Hyundai
dealers will experience no change in their ordering, inventory and invoicing
procedures.  Kia and Hyundai parts will be stocked separately within the PDCs.

    "We feel the new initiative will help us supply parts to our customers
more efficiently than ever before," said Jim Richert, Kia's vice president of
parts.  "Being able to stock parts in facilities that are closer to our
dealers and customers will result in better service and lower costs."
    Currently, Kia services its more than 600 dealers from PDCs in Chino,
Calif., Allentown, Pa., and Atlanta.

    In its eighth year of marketing vehicles in the United States, Kia is
America's sixth-largest import vehicle brand by dealer count.  In its
record-setting 2000 calendar year, the company sold more than
160,000 vehicles.