Kia Motors warns of tough road ahead in Europe without government aid

Kia Motors saw its European registrations decline 14% in the first quarter because of disruptions sparked by the coronavirus crisis.
By : Bloomberg
| Updated on: 01 May 2020, 11:46 AM
File Photo: Kia joined a chorus of carmakers in Europe hoping for state aid to lift the industry out of the worst sales slump in recent memory. (REUTERS)
File Photo: Kia joined a chorus of carmakers in Europe hoping for state aid to lift the industry out of the worst sales slump in recent memory. (REUTERS)
File Photo: Kia joined a chorus of carmakers in Europe hoping for state aid to lift the industry out of the worst sales slump in recent memory. (REUTERS)
File Photo: Kia joined a chorus of carmakers in Europe hoping for state aid to lift the industry out of the worst sales slump in recent memory.

Europe’s carmakers face a worse quarter than the tough one they just completed unless governments step in with additional aid, according to Kia Motors Corp.’s European chief operating officer.

The South Korean firm saw its European registrations decline 14% in the first quarter because of disruptions sparked by the coronavirus crisis, Emilio Herrera said in an interview on Thursday. If governments don’t decide on subsidies soon, “the second quarter will be even worse," he said.

Kia joined a chorus of carmakers in Europe hoping for state aid to lift the industry out of the worst sales slump in recent memory. In Germany, representatives from the likes of Volkswagen AG, Daimler AG and BMW AG are scheduled to discuss possible car-buying subsidies with politicians next week.

Similar Cars

Find More Cars
Kia Sonet (HT Auto photo)
Kia Sonet
1197 cc | Petrol | Manual | 18.4 kmpl
₹6.79 - 13.55 Lakhs**Ex-showroom price
Kia Carens (HT Auto photo)
Kia Carens
1497 cc | Petrol | Manual | 16.5 kmpl
₹8.99 - 16.99 Lakhs**Ex-showroom price
Kia Seltos (HT Auto photo)
Kia Seltos
1497 cc | Petrol | Manual | 16.5 kmpl
₹9.95 - 18.1 Lakhs**Ex-showroom price
Force Motors Gurkha New (HT Auto photo)
Force Motors Gurkha New
2596 cc | Diesel | Manual
₹13.59 Lakhs**Ex-showroom price
Kia Carnival (HT Auto photo)
Kia Carnival
2199 cc | Diesel | Automatic (Torque Converter) | 13.9 kmpl
₹24.95 - 33.99 Lakhs**Ex-showroom price
Kia Ev6 (HT Auto photo)
Kia Ev6
Electric | Automatic
₹59.95 - 64.95 Lakh**Ex-showroom price

The idea has stoked political controversy, given the billions in profits the companies achieved last year. German Economy Minister Peter Altmaier suggested he’s against a program favored by the industry that would cover all models, saying any new aid would need to help reduce carbon emissions.

FOLLOW US:Stay Updated with latest content - Subscribe us on
FOLLOW US:Stay Updated with latest content - Subscribe us on

Herrera said carmakers need any help they can get to achieve tough emission targets set to fully kick in next year.

“To benefit every consumer, it should be a program that also supports combustion engines," he said. “But I have no problem with a CO2-only plan."

First Published Date: 01 May 2020, 11:46 AM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city