In response to a letter sent by the Kia Australia Dealer Council to the Korean Embassy in Canberra, Kia Motors Australia's chief operating officer Steve Lotter today reassured Kia dealers around the country that the company remained committed to its growth ambitions outlined in early March.

The Kia Australia Dealer Council recently wrote to the Korean Ambassador to Australia expressing their concern at the potential impact of investigations currently involving the Hyundai/Kia groups in Korea.

Whilst the investigations are a distraction, Mr Lotter said the company is still firmly on track with plans to double its sales volumes over the next few years.

"We expect these investigations in Korea to be resolved quickly and that there will be no lasting impact on Kia's sales or brand image in Australia," said Mr. Lotter.

According to the acting chairman of the Kia Australia Dealer Council, Marc Caton, the dealers' concerns related to the potential damage to the Kia brand in Australia.

"Kia and its dealer network have worked hard for over nine years to build the Kia brand and presence in Australia," said Mr Caton.

"We are greatly concerned that negative publicity surrounding the Hyundai/Kia groups is undermining our efforts at a time of renewed focus and energy for the Kia franchise. "Most of our dealers have just returned from Korea where they visited some of the Hyundai/Kia manufacturing and R&D facilities and learned more about their huge investments and plans for the future."

"Kia opened its wholly-owned Australian subsidiary on 1st March this year, we understand the company has some new and exciting products to release later this year and the dealers are ready for action."

"The prospects for Kia and our Australian dealer network are very good so the sooner the investigations in Korea are resolved, the sooner we can return to our mission of growing the Kia brand and sales in Australia," Mr Caton concluded.

Mr Lotter added that plans are well underway for the mid-year release of Kia's new family car, the all-new Magentis, following the success of the recently released LWB Grand Carnival people mover.

This year will also see the introduction of the new SWB Carnival with eight seats, a face-lifted Cerato and 4WD Sorento and the possibility of diesel versions of both Sportage and Sorento.

2006 Kia Carnival

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