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Sales Up 61% So Kia Terminates its only US Advertising Agency GMO...HUH?

18 November 1999

Agency loses account because of its success in growing Kia Sales.Kia Account is now too Big to handle.

    IRVINE, Calif., Nov. 17  -- Kia Motors America today announced
the termination of Goldberg Moser O'Neill (GMO) as its advertising agency.
Since its selection July 29, 1993, GMO has been Kia's only ad agency.

    "Kia sales are 61 percent above last year, so the decision to terminate
GMO was not a result of slow sales or bad creative; it was done for other
business reasons," explained Dick Macedo, Kia's executive vice president of
marketing and sales.  "We'll be launching three new models in the next
12 months, so the strategy-development resources we'll need are crucial to our
success.  Unfortunately, GMO is unable to support our needs -- and our
dealers' needs -- during this incredible growth period for Kia."

    With Kia sales targeted to reach 175,000 units in 2000 and upwards of
200,000 units in 2001, Macedo said Kia's new ad agency must have resources to
help the Korean car company achieve its goals, plus manage an advertising
budget of more than $100 million.

    "We're negotiating with an agency now and, if there are no complications,
we should be able to make an announcement in a week or so," Macedo said.

    "In retrospect," Macedo added, "I'm amazed at how Kia has grown in just
six years.  In 1993, we had no dealers and had yet to sell a car.  This year,
we've got almost 550 dealers who'll sell more than 120,000 vehicles.  GMO was
an instrumental part of helping us achieve that success, but we've got to do
things now that will enable us to sell more vehicles in the future."

    Kia Motors America is the U.S. sales, service and distribution arm of Kia
Motors Corp. in Seoul, Korea.