Kia Calls U.S. Car Sales Vital to S. Korean Firm’s Survival

South Korea’s continuing economic turmoil has made the U.S. sales of its No. 3 car maker, Kia Motors Corp., a crucial factor in the company’s survival efforts, a spokesman said Monday.

Irvine-based Kia Motors America Inc. sold a record 55,325 vehicles in the U.S. last year, up 66% from 1996--in large part because the company has added 111 dealers in new territories in the last 12 months. The U.S. sales, marketing and distribution unit of South Korea’s bankrupt Kia Motors sold 36,274 vehicles in 1996--a fraction of total auto industry sales of about 15.1 million units.

U.S. sales are critical because of the stricken South Korean economy, spokesman Geno Effler said. “The market is pretty flat in Korea,” he said. “Here in America, we’re [Kia’s] No. 1 export market. They’re looking for us to carry the ball.”

Effler said that while much of the sales boost came from adding new dealers, same-store sales also have been increasing. Kia dealerships that were open in 1996 were selling an average of 20 units per dealership--a 25% increase--in the waning months of 1997, he said.

Kia sold 36,274 of its Sephia compact sedans and 26,366 Sportages, a compact sport-utility vehicle, in the U.S. last year. Both models have been sold in the U.S. since the company entered the market in 1994.

Kia will introduce a Sportage 2-door convertible in early spring and says it is planning both a minivan and a subcompact car for the U.S. in the 2000 model year.