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FINANCIAL NEWS
Al Majid, Kia Motors plan $41m expansion in UAE
05 Apr 2010
(MENAFN) A senior official at Al Majid Motors said that the company has agreed with KIA Motors, South Korea’s second largest automobile manufacturer, to invest almost $40.8 million in new showrooms to expand in the UAE, Gulf News reported.
He pointed out that the two firms will jointly open sales, service, spare parts and storage centre in Abu Dhabi’s Musaffah area, adding that the $29.9 million facility will accommodate almost 2,700 vehicles.
Another major investment will be made in Ras Al Khaimah, where a new $7.9 million sales, service, spare part and storage centre will be set up. The facility will be ready by the last quarter, according to Ahmad.
The investments will be made through distributor Al Majid Motors, a Juma Al Majid Group company.
The South-Korean company suffered a 35 percent drop in UAE sales last year despite global growth of 12 percent, according to the official.
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