South Korea's second-largest automaker, Kia, reported weakened financial performance during the April-June quarter. The company experienced a 23.3 percent decline in net profit, falling from 2.95 trillion won to 2.26 trillion won compared with the previous year. Operating profit decreased 24.1 percent to 2.76 trillion won, while revenue increased 6.5 percent to 29.34 trillion won. New United States import duties of 25 percent on foreign vehicles began affecting company earnings in April.
Kia executives blamed higher promotional spending and competitive market pressures for reduced profitability. The tariff policy alone cut operating profit by 786 billion won during the first six months. Management announced strategic adjustments to counter trade barriers by focusing domestic production on American consumers rather than export markets. The automaker will emphasize sport utility vehicles and hybrid models while expanding electric vehicle offerings globally. Company shares dropped 0.86 percent to close at 104,100 won on Friday.
Kia executives blamed higher promotional spending and competitive market pressures for reduced profitability. The tariff policy alone cut operating profit by 786 billion won during the first six months. Management announced strategic adjustments to counter trade barriers by focusing domestic production on American consumers rather than export markets. The automaker will emphasize sport utility vehicles and hybrid models while expanding electric vehicle offerings globally. Company shares dropped 0.86 percent to close at 104,100 won on Friday.
