Kia Postpones Georgia Plant Indefinitely

[range]

Kia Postpones Ga. Plant Indefinitely

 

Faced with turmoil in its ranks as the chairmen of Hyundai and Kia are investigated in a South Korean bribery scandal, Kia Motors says it will indefinitely postpone the construction of an assembly plant near the town of West Point, Ga. The $1.2 billion plant was to begin production in 2009 with a capacity of up to 300,000 vehicles per year, from a workforce of 2500 workers. However, the growing legal problems of Hyundai chairman Chung Mong-koo and his son, Kia chairman Chung Eui-sun have led to the postponement of construction in Georgia as well as in the Czech Republic, where Hyundai was to build a $1.3 billion car assembly plant.

[Patriotic]

Who is that Kia lover on these boards? He'll be upset.

[Imawhosure]

I feel terrible saying this-------->but I view the first post as good news!

[NLPRacing]

Who is that Kia lover on these boards? He'll be upset.

 

Ovaltine loves the Kia's!

 

I know Ford tried to Kia at one time. I wonder if the scandal does bring down Hyundai-Kia, if they will be sold off as whole or in part and purchased by somebody like Toyota, Honda, or even Ford?

[Harley Lover]

FWIW, this story might not be accurate. The local fish wrapper in Atlanta printed quotes from a company spokesman that said "major decisions" about the plant would be delayed, but they still intended to have the plant online in 2009. This info, of course, contradicts what has been thrown on some of the internet news sites (like car connection). I haven't a clue which one is correct, just thought it might be of value to let everyone know there is more than one version of this story.

[NickF1011]

Ovaltine loves the Kia's!

 

I know Ford tried to Kia at one time. I wonder if the scandal does bring down Hyundai-Kia, if they will be sold off as whole or in part and purchased by somebody like Toyota, Honda, or even Ford?

 

At last check, I do believe Ford still owns a 15% stake in Hyundai Motors.

[630land]

We fought the Korean war for this, too, :shrug: :titanic:

[NLPRacing]

At last check, I do believe Ford still owns a 15% stake in Hyundai Motors.

 

I don't think Ford does, but I believe DC owns like 10% of Hyundai. Maybe if this scandal takes Hyundai down, maybe DC can get Hyundai and Ford could buy Kia.

[Ovaltine]

..... Maybe if this scandal takes Hyundai down, maybe DC can get Hyundai and Ford could buy Kia.

 

 

Reality check people...... please?

 

http://www.msnbc.msn.com/id/12531055/

 

"Few would deny Chung credit for transforming Hyundai into a global success story. Thanks to his relentless drive for better quality, Hyundai's Sonata sedan and Santa Fe SUV have won praise from customers. Yet most industry watchers also agree that the company could not have grown so rapidly without its huge pool of talented designers and managers, and top-notch parts suppliers that have sprung up in Korea over the past decade.

 

"With the main roadmap and basic systems in place, professional managers will likely do a better job going forward than one man running a fiefdom," says Park Kyung Min, head of fund management company Hangaram Investment Management. "What happened at Hyundai is a blessing disguised as a misfortune."

 

 

The point is..... Korea ain't going to let one of their largest conglomerates (10% of their exports) "go down" due to the actions of a couple of people.

 

Do you think Ford would be "liquidated" if William Clay Ford Sr. and Jr. were busted doing something similar? Sure it would give the company a black eye for awhile, but I DOUBT it would torpedo it to its grave.

 

The bottom line is that the Chungs majorly "f'ed up" doing what was in the past was "business as usual", and now are going to feel the heat for doing it. Which ultimately is a good thing from both a justice perspective AND the bolded reason above.

 

Time will tell....

 

-Ovaltine

Edited May 19, 2006 by Ovaltine

[range]

Reality check people...... please?

 

[The point is..... Korea ain't going to let one of their largest conglomerates (10% of their exports) "go down" due to the actions of a couple of people.

 

Do you think Ford would be "liquidated" if William Clay Ford Sr. and Jr. were busted doing something similar? Sure it would give the company a black eye for awhile, but I DOUBT it would torpedo it to its grave.

 

-Ovaltine

 

 

I guess you have never heard of ENRON, or ARTHUR ANDERSON or WOLRDCOM ???????

 

Hyundai is just lucky they are not a US company (even though they run commercials pretending to be), or Hyundai would go the route of the aforementioned companies.

 

Korea will shelter Hyundai from this though, just as Korea shelters Hyundai from any real competition within their borders.

 

Just chalk this up to another example of an un-level playing field.

[630land]

It makes we root for the North Koreans to

merge the South.

[J-150]

I guess you have never heard of ENRON, or ARTHUR ANDERSON or WOLRDCOM ???????

 

Hyundai is just lucky they are not a US company (even though they run commercials pretending to be), or Hyundai would go the route of the aforementioned companies.

 

Korea will shelter Hyundai from this though, just as Korea shelters Hyundai from any real competition within their borders.

 

Just chalk this up to another example of an un-level playing field.

 

 

 

not the same thing.

 

this is about kickbacks and bribes... not ghosting the books

 

and its not anything that GM, Ford and Chrylser have not done themselves in the past.

[range]

not the same thing.

 

this is about kickbacks and bribes... not ghosting the books

 

and its not anything that GM, Ford and Chrylser have not done themselves in the past.

 

 

 

 

Hyundai didn't "ghost" the books? How do you explain Hyundai's secret $109.5 million slush fund? Did that show up on the corporate ledger under "Secret Slush Fund" ?

[NLPRacing]

I guess you have never heard of ENRON, or ARTHUR ANDERSON or WOLRDCOM ???????

 

It was Arthur Andersen, not Arthur Anderson.

[blackhawk_88]

I don't think Ford does, but I believe DC owns like 10% of Hyundai. Maybe if this scandal takes Hyundai down, maybe DC can get Hyundai and Ford could buy Kia.

 

FWIW, DCX sold its stake in Hyundai about two years ago.

Edited May 21, 2006 by blackhawk_88

[J-150]

Hyundai didn't "ghost" the books? How do you explain Hyundai's secret $109.5 million slush fund? Did that show up on the corporate ledger under "Secret Slush Fund" ?

 

 

they are being charged for WHY this fund was created, not the fact that it was.

 

 

How is it embezzlement when the bank account is still controlled by a company director for the benefit of the company? That doesnt meet the criteria to be called embezzlement.

 

 

No. Its because they want this money to bribe the government.

[range]

they are being charged for WHY this fund was created, not the fact that it was.

How is it embezzlement when the bank account is still controlled by a company director for the benefit of the company? That doesnt meet the criteria to be called embezzlement.

No. Its because they want this money to bribe the government.

 

 

You are saying that what they did was proper and legal?

[J-150]

You are saying that what they did was proper and legal?

 

 

where the F did I say that?

 

What I'm saying is that this is not like WorldCom or Tyco. Its not about embezzlement, its about bribery.

 

 

 

Remember, Elliot Ness took down Capone with tax evasion. So the actual charge is irrelevant. Its the govt taking down a criminal with whatever charge will stick and pass the jury test.

[range]

"How is it embezzlement when the bank account is still controlled by a company director for the benefit of the company? "

 

Those funds are the shareholder's funds, not the CEO's personal slush funds to use for illegal activity, regardless if the intent was to "benefit the company".

 

That is why Hyundai's CEO was specifically indicted on "Embezzlement" and "Breach of Trust" charges.

 

Bottom line is that the allegation is that the Hyundai CEO skimmed off funds from different parts of the corporation to set up a $109.5 million fund to engage in bribing gov't officials in exchange for benefits that are just now emerging.

 

As posted elsewhere, some of these illegal pay offs were to allegedly have the Korea Development Bank write off 20 billion won of Hyundai's debt.

 

Somehow, I don't think this is "not anything that GM, Ford and Chrylser have not done themselves in the past" DCX maybe, Ford/GM no.

[captamrica]

I feel terrible saying this-------->but I view the first post as good news!

 

You and me both

 

Edited May 23, 2006 by Captamrica

[J-150]

Somehow, I don't think this is "not anything that GM, Ford and Chrylser have not done themselves in the past" DCX maybe, Ford/GM no.

 

 

 

 

head in the sand....

 

 

 

and Henry wasn't an anti-semite, Nazi supporter either.

[range]

Last I checked the CEOs of GM or Ford have not been arrested and indicted for embezzling stockholder funds to bribe officials from a State-owned bank to wipe out debt owed to a government-owned bank.

 

Glad to see the disgraced CEO of Hyundai has at least one supporter in the US.

[J-150]

Last I checked the CEOs of GM or Ford have not been arrested and indicted for embezzling stockholder funds to bribe officials from a State-owned bank to wipe out debt owed to a government-owned bank.

 

Glad to see the disgraced CEO of Hyundai has at least one supporter in the US.

 

 

 

 

 

 

 

whatever.

 

now go back to the sandbox with your little boy insults

[Ovaltine]

Last I checked the CEOs of GM or Ford have not been arrested and indicted for embezzling stockholder funds to bribe officials from a State-owned bank to wipe out debt owed to a government-owned bank.

 

Glad to see the disgraced CEO of Hyundai has at least one supporter in the US.

I commend the management of the last 2 truly American car companies for taking the high road in this kinds of matters. Hopefully that kind of virtue will serve them well (somehow) in today's global competitive market.

 

And I do hope that both Hyundai's and Chrysler's management are learning that financial funny business DOESN'T pay in the long run.

 

And attempts to resurrect Henry I's anti-semiticism to defend other companies misbehavior won't pass "Critical Reasoning 101".

 

 

But tread carefully the path of self-righteousness. The way can be very rocky, narrow, and prone to make one stumble.

 

*slip*

http://www.wxyz.com/wxyz/ys_investigations...3585993,00.html

 

*bump*

http://www.detnews.com/2005/autosinsider/0.../A01-176893.htm

 

*ouch*

http://www.citizen.org/autosafety/industry...cover/index.cfm

 

*scuff*

http://www.autosafety.org/article.php?scid=37&did=317

 

 

Note: Before anybody comments how these are all old news/recalls, yada, yada...... the key point to look for is the element of *deception* being claimed on Ford's part in these 4 *different* safety related issues addressed over just the last couple of decades.

 

Someone *could* attempt to make a counter point of "...if your car company HAD to be crooked in some way, would you rather them try to buy off some debt and government favors at *investors* expense, OR would you rather have them trying to CYA themselves over safety issues at *your* possible personal expense?"

 

Is that my personal claim? No. BUT.... as I said someone could make it, and in many ways be convincing in it.

 

So my advice to people is that feel free to criticize actions like Hyundai's and Chryslers, but be VERY careful when making comparisons between a company in distress and the virtues of YOUR favorite company. NEXT time it could be *your* team in the spotlight!

 

 

-Ovaltine

Edited May 24, 2006 by Ovaltine

[Spyderman]

Hyundai also just announced they are delaying hybrid models until 2009. If they are delaying factories and new technologies lke hybrid cars, it looks as if Hyundai doesn't have a lot cash to throw around anymore.