Hyundai, Kia Outsource Vehicle Logistics

Compiled ByJill Jusko Improved operations is the goal of a newly formed organization that will take total responsibility for vehicle logistics management for Hyundai Motor America (HMA) and Kia Motors America (KMA). The Costa Mesa, Calif.-based operation, called HK Logistics America (HKLA), was created by Hankook Logitech Co. Ltd. and Hyundai Automotive Group. HMA and KMA combined have 11 port operations -- nine water ports and two inland processing centers -- in eight states. The two auto companies say they will import more than 700,000 vehicles in 2003 and service more than 1,200 dealerships nationwide. The new company's first task will be to consolidate the supply chain management for all logistics activities in North America. Hyundai Motor America, based in Fountain Valley, Calif., is a subsidiary of Hyundai Motor Co., headquartered in Seoul, South Korea. Kia Motors America is the U.S. sales, marketing and service arm of Kia Motors Corp., Seoul. HK Logistics America will seek opportunities to become a total logistics provider for other automotive customers, press reports say. Its Seoul-based parent company manages worldwide logistics services for a number of industries.