Kia Motors was founded in 1944 as a manufacturer of steel tubing and bicycle parts, later moving into automobiles. By the 1990s, it had grown into South Korea's second-largest automaker. But the 1997 Asian financial crisis exposed years of overambitious expansion, and Kia declared bankruptcy.
In 1998, Hyundai Motor Company acquired 51% of Kia, outbidding Ford Motor Company. The acquisition marked the beginning of a two-decade turnaround. In 2006, Kia hired Peter Schreyer, former Audi designer, as chief design officer. He created the 'Tiger Nose' grille that became the brand's signature and completely restyled Kia's lineup.
The turnaround produced results: from 2015 to 2019, Kia was ranked by J.D. Power as the highest-ranked mass market brand in initial quality. By 2013, Kia had recorded its 18th consecutive year of increased U.S. market share. In 2025, Kia set a global sales record of 3,135,803 vehicles, a remarkable recovery from the near-death experience of 1997.
Hyundai bought 51%, hired Audi designer Peter Schreyer, whose Tiger Nose grille restyled the lineup, driving sales to 3.14M by 2025.
Kia's overambitious expansion left it exposed when the 1997 Asian financial crisis hit, forcing the company into bankruptcy.
Hyundai's acquisition provided the financial stability and operational discipline needed for a long-term turnaround, while allowing Kia to operate independently.
The hiring of Peter Schreyer as chief design officer in 2006 transformed Kia's design language, making it a global brand rather than a budget alternative.
A brand can survive bankruptcy if new ownership provides stability and a clear vision. The Kia turnaround shows that design and quality can rebuild a company that was written off.
Kia continued to operate as a subsidiary of Hyundai Motor Group, maintaining its own brand identity and design direction. The company became known for its distinctive 'Tiger Nose' grille design and strong quality ratings. By 2025, it was a global top-10 automaker with 3.14 million annual sales, a remarkable recovery from the near-death experience of 1997.
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