Hyundai-Kia Motor Group said yesterday it has taken emergency measures to reform its China unit amid rapidly declining sales.

The top Korean auto group said it established separate Chinese headquarters for Hyundai and Kia, allocating veteran executives for each unit. Kim Dong-jin, current vice chairman of Hyundai Motor, will be heading Beijing Hyundai.

Kim Ik-hwan, present vice chairman of Kia Motors, will be seated as head of Kia’s business unit in China, also known as Dongfeng Yueda Kia Motors. Seol Young-heung, the chairman currently in charge of Hyundai-Kia’s Chinese operation, will supervise production and sales for both units.

The restructuring comes as Hyundai-Kia nears completion of new production facilities in China. It is an optimal time for the group to shift its focus to sales. Kia’s second China plant and Hyundai’s second factory are scheduled for completion next year,” said a Hyundai Motor spokesman. “The group’s decision to dispatch highly capable leaders to the China units underscores the fact that now the core issue is sales.”

Hyundai-Kia Motor Group has seen sharply declining sales in China this year. Beijing Hyundai’s sales ranking fell to eighth in 2007 from fourth in 2005 and fifth in 2006. The company is a joint venture with the Chinese government.

The carmaker adjusted its annual sales goal for this year from 310,000 to 260,000 units. Dongfeng Yueda Kia also saw its ranking fall from 12th in 2005 to 14th in 2006 and to 18th this year, although China’s auto market posted annual growth of 27 percent in the initial nine months of this year. [Source: Jongangdaily]