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Hyundai, Kia Team Up for Parts Distribution

O.C. BUSINESS PLUS | ORANGE COUNTY BRIEFLY

March 16, 2001|Bloomberg News

The U.S. units of Hyundai Motor Co. and Kia Motors Corp. in Orange County said Thursday that they have agreed to share parts-distribution centers in Atlanta and Aurora, Ill., to speed up deliveries to the South Korean auto makers' dealers.

Kia, a subsidiary of Hyundai Motor, will use the largest South Korean auto maker's Illinois center starting April 2 to supply parts to 126 dealers in the Midwest, the companies said. Beginning April 30, Hyundai will ship parts from Kia's Atlanta facility to 102 dealers in 10 states, mostly in the South.

Both auto makers have been increasing U.S. sales, attracting customers with low-price small cars and compact sport-utility vehicles, as well as lengthy warranties. Hyundai last year sold 244,391 vehicles in the U.S., a 49% increase from 1999. Kia's sales rose 19% to 160,606.

Sharing the parts centers will reduce shipping and overhead costs and cut the time it takes for dealers to get replacement parts, the companies said.

Hyundai, which has its U.S. base in Fountain Valley, also has U.S. parts centers in Jamesburg, N.J., and Ontario. Kia, which has its U.S. headquarters in Irvine, has other centers in Allentown, Pa., and Chino.

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