Management <br>as DesignManagement <br>as Design

Management
as Design

Chapter 5. 2005 - 2011

2006

The Dawn of ‘Design Kia’

Management <br>as Design

Riding the momentum of integration and innovation, Kia turned to design differentiation as the
key to strengthening its global competitiveness. In 2006, Kia appointed world-renowned car
designer Peter Schreyer as its Chief Design Officer, officially declaring an era of design-led management.
Schreyer introduced the philosophy of “the simplicity of the straight line”
and built a unique design ecosystem for Kia.

Design management at Kia went beyond changing
the look of cars. It became a management strategy that reshaped the organization’s culture and
drove innovation across the company.

2006

Planting a Ceed in Europe

Management <br>as Design

Starting in 2000, Kia expanded its global management footprint beyond the U.S. to Europe and
the Asia-Pacific region. In Europe, a full-scale local management system took shape in the
mid-2000s with the establishment of a regional headquarters, a design center, and a
manufacturing plant.

From this foundation, Kia introduced Ceed—its first locally produced
Europe-specific model designed to reflect European tastes—in December 2006.
In September 2007, Ceed became the first Korean car to be shortlisted for the
European Car of the Year award. With the strong promise of an industry-leading
seven-year warranty, Ceed secured a competitive position in Europe’s compact segment.

2008

The First Korean Car
to Win the Red Dot Award

Management <br>as Design

Launched in September 2008, Soul embodied Kia’s shift in design philosophy, emerging in
step with the global growth of CUVs1. With bold, straight character lines, it signaled the future
of Kia design and left a strong impression with its iconic advertising campaign starring
hamsters.

In March 2009, Soul’s innovative styling led to it becoming
the first Korean automobile to win the Red Dot2 Product Design Award. In the U.S. market,
500,000 units were sold within the first five years and over 1 million units in nine years—proving
that design could translate directly into market success.

1) CUV (Crossover Utility Vehicle): A vehicle that combines the comfort of a passenger car with the practicality of an SUV

2) Red Dot: One of the world’s top three design awards—organized by the Design Zentrum Nordrhein Westfalen in Germany—that
evaluates innovation, quality, and distinctiveness

2009

Underdog Story:
Kia in North America

Management <br>as Design

Kia’s U.S. Georgia Plant

Kia first entered the U.S. in 1994 with the Pride subcompact and steadily built momentum.
To meet growing demand, Kia established a manufacturing plant in the state of Georgia.
Together with its U.S. sales subsidiary and design & technical center,
the plant enabled Kia to respond quickly to local trends and needs, earning the trust of the market.


In November 2009, production of Sorento R—the first vehicle
built in the U.S.—began, and from there, Kia introduced a growing lineup tailored to American
consumers, evolving into a brand loved across the
United States.

2011

10 Millionth Export and
a New Base in Mexico

Management <br>as Design

Kia Monterrey Plant in Mexico

Through design-driven management, Kia transformed its identity and continued to grow
despite the global financial crisis of the 2000s. Models such as Soul, Forte, and Sorento R
stood out in global markets, and in 2011 Kia surpassed 10 million cumulative exports1.


To meet rising demand, Kia sought a new production hub and chose Monterrey, Mexico as its fourth
overseas manufacturing site. Completed in 2016, the Monterrey plant became a strategic base
that has enabled Kia to respond flexibly to shifting demand in the world’s largest auto market,
North America.

1) Source: Kia official website IR materials

next history
Driving Global Growth
Chapter 6. 2009 - 2019
Driving Global Growth