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The Kia joint venture company is insolvent!

2024-03-04 Update From: AutoBeta autobeta NAV: AutoBeta > News >


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A few days ago, the official website of Kia Automobile of South Korea officially disclosed the quarterly financial report documents, according to the financial information of joint ventures and associated enterprises in the quarter ended March 31. Jiangsu Yueda Kia Automobile Co., Ltd., a joint venture in China, has total liabilities of 2.4709 trillion won (about 13.613 billion yuan) and assets of 1.9445 trillion won (about 10.713 billion yuan). According to this calculation, Jiangsu Yueda Kia is insolvent, with an asset-liability ratio of 127.1%. According to previous reports, the asset-liability ratio of Jiangsu Yueda Kia was 119.0% at the end of 2022.


Jiangsu Yueda Kia, formerly known as Dongfeng Yueda Kia, was jointly funded by Dongfeng Motor Group, Jiangsu Yueda Group and Kia Motor, accounting for 25%, 25% and 50% respectively. At the beginning of its establishment, it was sought after by many consumers by virtue of its pragmatic appearance and high performance-to-price ratio. market sales have been growing steadily since 2006, and reached an annual sales peak of 650000 vehicles in 2016, but due to the lack of resources in South Korea, the lack of product power, slow electrification and other factors have led to the weakness of Yueda Kia and gradually deviated from the development of the Chinese market. In January 2022, Dongfeng Motor Group withdrew and resold its 25 per cent stake in Dongfeng Yueda Kia for 297 million yuan. Dongfeng Yueda Kia has no "Dongfeng" since then.


Since 2023, Kia has begun to lay out new models. On February 13th, Kia's new K3 went on sale for 11.29-143900 yuan. At the 2023 Shanghai Auto Show, Kia Seatus, a replacement model of Qiya ao run, is equipped with a 1.5L naturally aspirated engine and sells for 10.99-139900 yuan.

In addition, in order to cope with the difficulties of sales in China, Kia has also begun to launch new energy vehicles. Kia said that starting from this year, Kia will launch at least one pure electric vehicle each year based on the special E-GMP platform for electric vehicles, and a total of six pure electric models will be launched by 2027. By 2030, the target of annual sales of 180000 EV models will be achieved, accounting for 40 per cent of the sales. it is understood that the first pure electric model, the Kia EV6, started blind booking on June 28 and will be available in China in the form of imported cars during the Chengdu auto show on August 25. limited to 1000.

On May 10, Yueda Kia issued a notice that: in order to realize the electrified transformation, the business staff structure needs to be integrated, and the company arranges management staff to take turns in batches, and the first batch of rest time is as long as one year, from June 1, 2023 to May 31, 2024. During the period does not enjoy the company benefits, salary adjustment, incentive and other policies, suspended employee card (meal supplement). Yueda Kia said that the internal personnel change is a normal adjustment in order to adapt to the new electric era, take the initiative to innovate and change, and accelerate the transformation to an electric brand. At the same time, the company is also expanding the recruitment of professional local elites to stimulate organizational vitality and achieve the healthy development of the company.


To "realize the electric transformation" through the employees' rotation also reflects to some extent that Yueda Kia's current life is not easy. Jiangsu Yueda Kia sold 94668 vehicles in 2022, down 38.41 per cent from 153707 in 2021, according to retail data. Jiangsu Yueda Kia sold 18752 vehicles in the first quarter of 2023, down 36.96% from 29744 in the same period.

On June 30th, Kia announced that Yueda Kia exported 8664 vehicles in the same month in June and 26157 vehicles in 2023. It is reported that Yueda Kia will continue to increase the export scale of Satus, and will increase the export of K5 models in the second half of the year, further expanding to four models, achieving an average monthly export of more than 10, 000 vehicles, and plans to export more than 100000 vehicles for the whole year.


Judging from a series of performances, Kia will not only continue to focus on the Chinese market, but will also quickly launch the layout of the new energy sector, but Kia is more disciplined than the all-out efforts of its own brands. This is also close to the route of many other joint venture brands in China New Energy, which is not rash but will not stop completely.

Despite poor sales in the domestic market, Yueda Kia has achieved rapid growth in exports this year. Yueda Kia plans to expand the annual export of the Yancheng plant to more than 200000 vehicles by 2026, turning it into a veritable global export base. At the same time, Yueda Kia will add two export models, Satus and K5, from the original two to four this year.

New energy can not move, then engage in the export business, although it can not destroy the city in the Chinese market, but at least it can help itself to make a good moat in the global market.

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