Kia Motors Recovers with 'Double-Digit Growth Rate' in the US, Faces Labor-Management Relations Challenges

[Asia Economy Reporter Su-yeon Woo] Kia Motors, which recorded double-digit sales growth in the U.S. market for two consecutive months recently, is facing difficulties in South Korea this year due to challenges in wage and collective bargaining negotiations. There are concerns that the rapid recovery in performance since the COVID-19 pandemic may be hampered by a strike from the labor union.

According to industry sources on the 8th, Kia sold 56,094 units in the U.S. market in October this year, a 12.2% increase compared to the same month last year, marking double-digit growth for two consecutive months. The locally strategic sport utility vehicle (SUV), Telluride, set a record approaching 10,000 units sold, breaking its all-time monthly sales record for two consecutive months.

Kia Telluride

Fueled by strong performance in the U.S. market, Kia’s total overseas sales in October set a new record for the first time in 3 years and 10 months. Kia sold 217,705 units overseas in October, a 7% increase compared to the previous year. This is the first time since December 2016 (265,338 units) that Kia’s monthly overseas sales exceeded 210,000 units.

The remarkable growth overseas was driven by the U.S. strategic SUV, Telluride. Last month, Telluride sold 9,697 units, nearly 10,000, breaking its monthly sales record for two consecutive months. The new K5, which was renamed from the previous model name 'Optima,' also set new sales records for four consecutive months since July, with 7,528 units sold.

Kia is also holding its ground in the domestic market. In October, Kia sold 48,009 units, a 1.8% increase compared to the same month last year, with the multipurpose vehicle (MPV) Carnival ranking first in monthly domestic sales at 12,093 units.

While Kia’s sales momentum continues to improve its performance, the labor-management relationship has yet to find a resolution. Hyundai Motor Company’s labor and management reached a no-dispute agreement in this year’s wage and collective bargaining negotiations, but Kia is still struggling to find common ground.

Recently, Kia’s labor union obtained a legal right to strike after the Central Labor Relations Commission’s mediation was suspended and union members voted in favor. With an overwhelming 73.3% of members voting for the strike, the Kia union appears ready to use the strike option at any time. Kia’s labor and management are scheduled to continue the main wage and collective bargaining negotiations on the afternoons of the 11th and 12th.

This content was produced with the assistance of AI translation services.