Kia divorce Irish partner

Korean car firm Kia has taken charge of Irish distribution after a parting of the ways with previous importer, millionaire truck…

Korean car firm Kia has taken charge of Irish distribution after a parting of the ways with previous importer, millionaire truck dealer Robert "Pino" Harris.

The move seems to have come as a surprise to Kia, who refused to reveal the exact circumstances behind the termination two years into its five-year contract with Harris, other than to say it was a mutual decision, "like a couple both agreeing to go their separate ways".

Speaking at a hastily-arranged press conference which followed a meeting with dealers, J. C. Lievens, vice president of sales and marketing for Kia Europe declined to discuss the financial arrangements behind the "divorce".

Kia will now control its Irish operations through its British subsidiary, Kia UK. However, according to Paul Williams, managing director of Kia UK, plans are to open an Irish office in the next month or so, employing four people to specifically look after the Irish network, which Kia hopes to grow to 35 dealers.

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As with all manufacturers, under new EU rules dealers will have to meet a set criteria of standards, and Kia plans to model its Irish criteria on those currently applied to its dealers in Belgium.

Kia sales in Ireland have been somewhat stagnant, managing only 0.29 per cent of the market last year with sales of 455 cars, and despite a new model programme, which will be unveiled in the coming months, the new operation sales target of 3,000 a year seems ambitious.

Before it markets the new model range, the new operation must deal with a significant backlog of aging unsold models, estimated at between 1,000 and 1,200 vehicles. While Lievens says Kia is looking at creating "an attractive package" for these cars, car buyers will be seeking some serious discount to help Kia clear its books. There is also a game of semantics underway as Kia claims its strategy is to offer "value for money" rather than "cheap" motoring.

The new models on the way include the new Picanto A-segment car, as well as a new C-segment car to replace the existing Shuma and Mentor.

Michael McAleer

Michael McAleer

Michael McAleer is Motoring Editor, Innovation Editor and an Assistant Business Editor at The Irish Times