Kia Gets $305 Million Loan, Sales Are Going Up

Kia Motors America today announced that it received a $305 million funding package from a group of banking institutions. Wells Fargo Foothill, part of Wells Fargo & Company, is the leading lender, with Banc of America Securities LLC and JPMorgan Chase Bank, N.A. as co-lead arrangers for KMA and Bank of America, N.A., as syndication agent, the auto manufacturer said in a statement for the press issued today.

“With credit being extremely tight these days, we are especially pleased these institutions recognize KMA’s stronghold in the U.S. automotive market,” said Byeong Wook (David) Kim, CFO, KMA. “KMA is growing and continuing to gain market share and this is further recognition of the strength of our business commitment.”

Furthermore, the company today revealed March sales of 24,724 units, an increase of 12 percent compared to February and 1 percent versus the same month of the previous year. Sorento and Sedona are still the company's best sellers, recording 57.8 percent and 61.7 percent increases. The recently-launched Kia Soul sold a total of 1,246 units.

The company expects even stronger performances this year, as the Forte sedan, set to arrive in dealerships this summer, is expected to record high sales since the first months of availability.

“Sales of the Kia Sorento and Sedona are strong and we can attribute that to the right marketing strategy and our strong value proposition,” said Michael Sprague, vice president of marketing, KMA. “We also are pleased to have the Soul post impressive results right out of the gate with its recent launch in the U.S market; we feel we have the right vehicles for the times.”