RIYADH, 12 August 2003 — In what has been described as a “major boost” to the growing commercial links between Saudi Arabia and South Korea, Kia Motors Corporation has signed an agreement to export 2,500 buses to the Kingdom at a cost of some SR562 million. The buses will be used for school transportation systems as well as for general transportation.
“Kia was selected to provide AM928 buses to Naghi Motors as part of a plan to replace all outdated school buses with more modern vehicles,” said industry sources here on Sunday. The buses will be made available in two stages. The first delivery of about 1,000 buses will be in December this year, with the remaining 1,500 to be delivered by Dec. 2004.
The Saudi authorities have discouraged private/individual ownership of school buses, which are usually driven by foreigners, in an effort to Saudize the jobs in the transporation sector.
“The Middle East in general and Saudi Arabia in particular are very important markets for the future of Kia. This project with Mohamed Yousuf Naghi Motors will pave the way for us to increase our market share in the region in all vehicle segments,” sources at Kia Motors said.
“This is a very special project. In terms of dimensions, exporting 2,500 buses is in effect the equivalent of exporting something like 25,000 passenger cars,” they said.
Founded in 1944, Kia Motors Corporation is South Korea’s oldest manufacturer of automobiles.
