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Ford Withdraws From Auction for Kia and Asia Motors

11 September 1998

Ford Motor Company Withdraws From Auction for Kia and Asia Motors

    DEARBORN, Mich., Sept. 11 -- Ford Motor Company is
withdrawing from the auction for Kia Motors and Asia Motors of South Korea,
Ford Vice Chairman Wayne Booker announced today.
    "Although we still believe that a Ford-Kia alliance was in the interest of
both companies, as well as for the nation of Korea, we are unwilling to take
control of a company that is saddled with an unreasonably high amount of
debt," Booker said.  "We believe the level of debt that the creditors have
specified will make it very difficult, if not impossible, for Kia and Asia
Motors to be successful, internationally competitive companies."
    For now, Ford hopes to continue its purchase of a B-segment small car,
called the Ford Festiva, from Kia for sale in its Asia-Pacific markets, Booker
said.