DATE: Saturday, November 1, 1997            TAG: 9711010731

SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

SOURCE: BY MICHAEL CLARK, STAFF WRITER 
                                            LENGTH:   42 lines

KIA'S U.S. AUTO SALES STRONG, DESPITE CASH WOES AT HOME

While South Korean automaker Kia continues to face financial trials at home, nothing has hindered its ability to sell vehicles in the United States.

Kim Sun-Hong, chairman of the automaker's parent conglomerate, chaebol, resigned Wednesday, finally giving in to demands first made last summer by creditor banks. One week before Kim's resignation, the South Korean government placed Kia under court receivership and installed new management. The move prompted thousands of Kia workers to go on strike.

The company's financial troubles have been news in the United States since summer. Still, Kia Motors America of Irvine, Calif., has set sales records on a monthly basis.

Kia Motors America spokesman Geno Effler said he's ``confident everything will work out in South Korea.''

Effler also said Kia America posted its best monthly sales figures in September, selling 7,123 vehicles. The previous high was in August, when the company sold 6,321 vehicles.

Walter Wilkins II, president of Bay Chevrolet-Geo-Kia, would not reveal sales numbers but said sales at his dealership continue to climb and that he expects that October would be ``at least as good as September.''

South Korean banks refused to give Kia Motors, the country's second-largest automaker, any new loans unless Kim stepped down. The conglomerate is $10 billion in debt. Kim's resignation and the government's control of the Kia group means ``they're moving toward a resolution even sooner than we expected,'' Effler said. ``We had been told the resolution was coming after the (mid-December) election.''

Acknowledging the prospect that the government has the option to sell parts of the company, Effler said Kia owners and prospective buyers in the United States should not be concerned.

``Steps have already been taken to sell off many subsidiaries, but Kia motors will remain intact.'' Effler said. ``A purchase would be transparent to buyers here.''

The company is also continuing with plans to produce a new two-door convertible model of its Sportage sport utility vehicle in 1998. Two more new models are scheduled in 1999.

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