Peter Butterfield: Kia Wants to Improve Quality Image - Hello Peter Here We Are- TACH Can Help!

DEARBORN, Mich. January 14, 2004; Norihiko Shirouzu writing for Dow Jones reported that Kia Motors Corp. of South Korea knows American consumers view its cars as being prone to quality glitches, and it plans to "make an aggressive move" in the next few years to overcome that problem, said a senior company sales executive.

, head of Kia's U.S. sales unit in Irvine, Calif., admitted that "quality is not something that leaps in your mind" when one hears the name Kia. He insisted, however, that the Korean auto maker has made solid gains in quality and is aiming to become by 2007 one of the top 10 auto makers in initial quality as measured by J.D. Power.

He said in a speech at an auto industry conference here that the company's improving quality and its more attractive and extensive product lineup should allow it to boost U.S. sales to 300,000 vehicles a year over the new few years.

Kia sold 238,000 vehicles in the U.S. last year.

Mr. Butterfield said Kia "would take a serious look" at the possibility of building an assembly plant in North America when its sales stabilizes comfortably above 300,000 vehicles.

Still, despite tangible gains in quality, Mr. Butterfield said consumer perception of Kia has lagged behind its actual quality accomplishment.

In an effort to improve its image, the Kia executive said the company would try to become a leader in safety for vehicles with a price tag between $10,000 and $30,000 because many car buyers equate safety with quality.

As part of that strategy, he said Kia plans to offer side-curtain air bags as standard equipment in every vehicle it sells in the U.S.