Kia and Ford Form Joint Venture Finance Company in South Korea

Kia Motors and Ford Motor Credit Company have announced a joint venture to establish a finance company in South Korea. The new company, Kia Ford Credit Finance Company, has received preliminary approval from the Korean Ministry of Finance and Economy. Scheduled to begin operations in January 1996, the joint venture will provide retail financing services to Kia and Ford customers in Korea, with plans to expand into wholesale financing, retail leasing, and fleet leasing once regulations permit.

Key Takeaways:

• Kia Motors will hold 60% ownership of the joint venture company, while Ford Motor Credit Company will hold 40%.
• The company will operate from an office in Seoul and later expand its operations into other provinces.
• The joint venture aims to strengthen Kia's international and domestic marketing abilities and utilize existing production capacity.
• The company will provide world-class auto financing services to Kia and Ford customers in Korea.
• Ford Credit President Edsel B. Ford II expressed confidence in the partnership, stating that the combined strengths of Kia and Ford Credit can make them the leading auto finance company in Korea.
• Kia Motors President S.J. Han emphasized the importance of the partnership in completing the company's plans for the 21st century.

Statistics:

• January 1996: Scheduled start date for the joint venture operations.
• 60%: Ownership percentage of Kia Motors in the joint venture company.
• 40%: Ownership percentage of Ford Motor Credit Company in the joint venture company.
• 1996: Year in which the joint venture aims to expand into wholesale financing, retail leasing, and fleet leasing services.

Sources:

• PRNewswire, Seoul, South Korea, Sept. 7 /PRNewswire/
• Kia Motors
• Ford Motor Credit Company
• Korean Ministry of Finance and Economy