AutoBeta(AutoBeta.net)03/25 Report--

According to Tianyan investigation, Dongfeng Yueda Kia Automobile Co., Ltd. (hereinafter referred to as "Dongfeng Yueda Kia"), one of the Korean car companies, has officially changed its name to "Kia Automobile Co., Ltd." and the approval date is March 22, 2022. Zhang Naiwen, the legal representative, and Yancheng Market Supervision Administration, the registration authority.

In response to the name change, the person in charge of Kia Automobile said: "the company name is not important, the key is the company strategy." The official also said that for Yueda Group, its main responsibility is to develop the local automobile industry on behalf of the Yancheng municipal government. Making Kia stronger and bigger in China is in line with the requirements of the development of automobile industry in Jiangsu Province and Yancheng, in line with the development requirements of China and South Korea (Yancheng) Industrial Park, and in line with Yueda Group's mission of "cultivating industry for Yancheng". The development of Yancheng automobile industry is also the development of Yueda automobile industry. At the same time, Kia also said that the Yancheng municipal government and Yueda Group are its most stable and reliable partners, and Kia will take root in Yancheng, which is currently Kia's only production base in China. Yancheng will continue to serve as the base and foundation for its future career in China.

Data show that Dongfeng Yueda Kia Automobile Co., Ltd. was established on September 12, 1992, jointly established by Dongfeng Automobile Group Co., Ltd., Jiangsu Yueda Investment Co., Ltd., and Kia Co., Ltd. the shares of the three parties are 25%, 25% and 50% respectively, and the operating life is from September 12, 1992 to September 11, 2022.

As one of the earliest overseas car companies to enter China, the sense of existence in the Chinese market is getting lower and lower. Before 2017, Dongfeng Yueda Kia developed rapidly. It was sought after by many consumers for its pragmatic appearance and cost-effective performance, and reached a sales peak of 650000 vehicles in 2016. Since then, with the impact of the THAAD incident, Dongfeng Yueda Kia sales have plummeted, from 360000 in 2017 to 250000 in 2020, leaving only 160000 in 2021.

On November 19, 2021, Dongfeng Automobile Group Co., Ltd. listed its 25% stake in Dongfeng Yueda Kia Automobile Co., Ltd. for sale at a listing price of 297 million yuan. On January 12, 2022, Dongfeng Automobile Group Co., Ltd. transferred 25% of Dongfeng Yueda Kia Automobile Co., Ltd. has been closed, Jiangsu Yueda Automobile Group Co., Ltd. is the only bidder. On January 21, 2022, the investors of Dongfeng Yueda Kia Co., Ltd. were changed to Jiangsu Yueda Investment Co., Ltd., Kia Co., Ltd., and Jiangsu Yueda Automobile Group Co., Ltd., holding 50%, 25% and 25% respectively. On February 7, 2022, Kia Co., Ltd. signed an expanded investment agreement with the people's Government of Yancheng and Jiangsu Yueda Group. Kia and Yueda will set up a new joint venture in Yancheng, Jiangsu Province as a base for future development. expand investment to introduce more global models and new energy models, and rapidly improve vehicle sales and capacity utilization. On March 1, 2022, Yueda Investment announced that due to the continued loss of Dongfeng Yueda Kia performance in 2021 and the fierce competition in the domestic automobile industry, the company gave up to participate in the capital increase of DYK. On March 18, 2022, the registered capital of Dongfeng Yueda Kia changed from US $624 million to US $1.224 billion.

According to the information disclosed by Jiangsu Yueda Investment Co., Ltd. (hereinafter referred to as "Yueda Investment"), the net profit of Dongfeng Yueda Kia from 2017 to 2020 is-1.123 billion yuan,-492 million yuan,-1.299 billion yuan and-4.75 billion yuan respectively, plus the net profit of-1.715 billion yuan in the first three quarters of 2021. DYK lost 9.035 billion yuan in four and a half years.

According to the plan, Kia will introduce the pure electric model EV6 this year, and will launch new electric models in the Chinese market every year from 2027. In the next ten years, Kia has set a goal of producing and selling more than 4 million vehicles in China. In addition, in order to further create high-quality products and accelerate the introduction of more competitive global models, Kia will gradually stop producing models below 100000 yuan.

It is understood that Kia Automobile will announce its future strategy at the Beijing Auto Show, and the name of Yueda Kia's new joint venture will be released, which also means that the 21-year-old DYK will completely withdraw from the stage of Chinese history.

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