On Friday, January 25, Kia Motors Corp., currently the number two automaker in South Korea, reported stronger than anticipated quarterly numbers.

Showing an operating profit over its loss a year ago, Kia saw its shares pick up 6.75 percent on the news, besting the overall market improvement of 1.1 percent.

An auto analyst at Heungkuk Securities quoted in a report by Automotive News said, "Kia will benefit from the recent trend of rising demand for small cars amid higher oil prices and a softer won [the Korean national currency.] Other new models are also expected to help the company further."

In Korea, sales of the Mohave or Borrego SUV and a minicar, the Morning, which the company recently revamped, are expected to lift sales, but prospects are less clear for growth in China and the United States where the automotive markets are fiercely competitive.

Pundits are anticipating, however, that for 2008 Kia could see an improved net profit of as much as $280.6 million if the company can capitalize on a winning vehicle.

Speaking to this point, Yun Tae-sik, a Dongbu Securities analyst also quoted in the Automotive News article said, "The fourth quarter's turnaround is not so meaningful. What Kia needs is a best seller like Hyundai's Sonata. Kia's earnings will get better maybe next year when it launchs the next Sorento Model." In fact, Kia has scheduled four new model launches for 2009.