Kia Motors seems to be making good progress in its continuous efforts for growth and excellence. A recent report by London Economics, a leading independent economic consultancy, has revealed that Kia is making outstanding contributions to Europe, generating numerous socio-economic benefits for the region. Emerging as the growing presence in the European automobile market, Kia continues to gain momentum as a global brand and leading automaker.
With the aim of maintaining growth and production, Kia has already made investments worth billions in Europe. In 2014, the brand contributed €934 million in customs duties, sales and corporation taxes to European governments, an 8% increase from €865 million in 2013.
Furthermore, Kia has recorded a combined gross valued added (GVA) totaling €2.5 billion, with values added along the value chain of manufacturing, supply, R&D, sales and distribution. The GVA measures a company’s contribution to gross domestic product (GDP) through the value of the goods and services produced, and thus demonstrate Kia’s immense economic contribution to Europe.
It is estimated that Kia’s activities in Europe will generate an €7.4 billion in additional output. As a major contributor to exports, Kia is expected to remain a crucial source of growth in the regional economy.
The Zilina manufacturing facility in Slovakia has also had an outstanding impact on the regional and domestic market. As of 2014, it is estimated that the plant accounted for 10% of global production and 56% of Kia vehicles sold in Europe.
As one of the few production facilities in the world with the capacity to manufacture 8 different models on the same line, this large scale operation makes Kia a major customer of the European supply industry. London Economics reported that the total value of supplies purchased in 2014 amounted to €4.3 billion with 71% (worth €3 billion) sourced directly from within the borders of Europe.
Combating Europe’s relatively high unemployment rate, Kia employs 37,000 individuals for the operation of the brand. An additional 116,000 jobs have been created indirectly through the supply chain thanks to the brand’s presence in Europe.
Kia goes even further by providing opportunities for skills development and training to maintain stable and sustainable employment and cultivate a large, highly skilled workforce. With various seminars and training programs offered on an ongoing basis, it is estimated that Kia’s distribution network averages 36 hours of training per employee, while often providing workers with formal qualifications.
Meanwhile, the research and development conducted by Kia Motors in Europe is expected to reap further long-term benefits. Kia’s R&D activities will be a vital source of ongoing innovation and technological development through knowledge and productivity spillover.
As a brand dedicated to philanthropy and social responsibility, Kia Motors commits wholeheartedly to contributing to CSR initiatives. In 2014, Kia allocated an estimated €1.9 million towards various humanitarian projects in the European region alone.
In addition to the pan-European Planting for a Better Life initiative developed by Kia Motors Europe, local distributors located in the UK, Slovakia, Spain, Italy, Poland, Germany, Sweden and Denmark are also active with local causes, making notable contributions toward humanitarian aid and environmental conservation.
“Europe is a key R&D and production base for Kia on a global scale, and our European output and footprint continues to grow each year,” said Mr. Michael Cole, COO of Kia Motors Europe. “We are pleased to see the London Economics report recognize the scale of our contribution to the European economy.”
At the end of the day, it is clear that the brand’s efforts for sustained growth and excellence have created mutually beneficial synergy for both Kia Motors and the European markets.ALL-NEW 2017 HYUNDAI ELANTRA BRINGS ADVANCED TECHNOLOGY AND PREMIUM CONVENIENCE TO THE COMPACT CAR SEGMENT
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