Dan Chitaru, the general manager of Kia Romauto, the official representative of Kia automobiles domestically, says the importer will buy minority or majority stakes in the dealerships whose sales are below market level.
"We will take steps where we consider the dealership is not capable of identifying the necessary solutions for growth, either because of a weak management, or for financial reasons. Thus, we will take over their operations partially or entirely. The first step was to make some direct investments in Arad, where, together with a local partner, we'll open a new dealership next month. Investments amounted to some 2.5m euros. We will subsequently expand in other regions, but we are doing some market research for the moment," Dan Chitaru pointed out.
At present, Kia Romauto distribution network includes two dealerships in Bucharest, MIT Motors International and International Motors Group. The first has three locations in Bucharest. Countrywide, there are 20 locations owned by 17 dealerships.
In 2007, Kia importer opened three new showrooms, but closed two locations, in Satu Mare and Baia Mare. By yearend, the importer wants to open three new dealerships in Ploiesti, Tulcea and Targu Jiu, while for Buzau the importer is still holding talks.
"In Bucharest, we'll open two new sales points by yearend, but we're not speaking of major investments or integrated centres, since the current network corresponds to the number of cars. When an increase becomes necessary, we will resort to the second or even third shift. We plan to expand the network of dealerships by at least 30% in the next 3 years, and particularly strengthen the network on the after-sales services segment," he added.
Kia sold 607 units during the January-late May period, down 4.6% compared with the first 5 months of 2006. "We plan to sell 2,400 cars in 2007, but we will most likely reach the 3.000-unit mark. For 2007, we expect sales to rise by at least 50% against last year, particularly thanks to the new Kia c'eed. Growth in 2008 will largely depend on the price policy of the importer," added Chitaru.
The importer will also launch a road assistance programme, Kia KAR, valid across Europe. The programme will be launched in Romania on July 1.
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