Kia logs 54% drop in 4Q net profit of 2014 to $402.10 million

Article by Christian A., on January 26, 2015

Kia saw its net profit in the fourth quarter of 2014 drop 54 percent to KRW436 billion ($402.10 million), no thanks to weakening Russian ruble that made money earned in the country lessen in value. According the South Korean carmaker, it expects sales in Russia to plunge 12 percent this year, as people would tend to shy away from vehicle prices that could become higher due to the ruble’s depreciation.

Its affiliate, Hyundai Motor, also logged a drop of 19 percent in net profit, pointing the blame to the weakening ruble and higher incentives in the United States. Kia shares a Russian plant with Hyundai and locally builds about 45 percent of vehicles it sells in the country, with the rest imported from South Korea and Slovakia.

However, those imported vehicles include the more expensive and higher-value products like the midsize Optima sedan and the Sportage and Sorento compact SUVs. Kia has had hiked the prices of some vehicles in Russia, and has been shifting some shipments to other markets.

For the full year 2014, Kia posted a 1-percent drop in Russia to 195,691, according to data from the Association of European Business (AEB).

Topics: kia, profit

If you liked the article, share on:

Comments

Recommended

Just a month ago, Wolfgang Durheimer, the former president of Bugatti, was removed from the company so he could replace Stephan Winkelmann, former Lamborghini CEO and Audi Sport boss as...
by - September 23, 2017
BMW will be launching a new Competition Package especially for the M5’s 2018 model year. While in Frankfurt, Andy Cook, BMW’s product exec has talked with Motor 1 regarding some...
by - September 22, 2017
BMW’s pure M and M-performance are currently being offered with six- and eight-cylinder turbocharged engines. But while German premium rival Mercedes-Benz offers – through its AMG division – a line...
by - September 22, 2017
In a recent report by Automotive News, we learned that FCA is no longer pursuing its original plans in using Alfa Romeo’s Giorgio architecture on both the Dodge Charger and...
by - September 22, 2017
Volvo Cars is proving that it is serious in its intention to grab a good piece of the global market for premium sports utility vehicles. While its XC60 and the...
by - September 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries