|Client:||Hyundai Motor Company|
|Published:||13 January, 2016|
|Tagged:||analysis of economic developments EC/EEA qualitative analysis|
LE’s new report on the economic and societal impact of the presence of Kia in Europe finds that over 153,000 people owe their jobs to Kia’s business operations across the continent.
Including customs duties, sales and corporation taxes, the report highlights Kia’s contribution of €934 million in taxes paid to governments across Europe during 2014, further supporting the region’s economies. This figure has increased by almost 8% over 2013, a year in which Kia businesses paid €865 million in taxes to European governments.
Production has expanded continuously for a number of years at Kia’s European manufacturing facility in Žilina, Slovakia, which produced its first vehicle at the end of 2006 – and its two millionth in 2015. The Žilina facility – operated by Kia Motors Slovakia – is one of the few plants in the world with the capacity to manufacture up to eight different models on the same production line.
As production has grown at the plant (output rose by 3.5% over the 2013-2014 period), the London Economics report highlights the total value of supplies purchased by Kia’s European manufacturing operation, which stands at €4.3 billion in 2014. €3.0 billion of these supplies (71%) were sourced from within Europe. In 2014, 56% of all Kia vehicles sold in Europe were manufactured locally in Slovakia.
The report highlights Kia’s entire European value chain, from R&D, through manufacturing, supplies, sales and cars’ eventual distribution across the continent. The sales distribution network itself adds €1.3 billion to European GDP, while Kia’s total gross value added (GVA) – including external suppliers and independent retailers of the Kia brand – to €2.5 billion.