"We will completely normalise the operation of Kia Motors by 2003 and bring the profitability of both companies to the level of a world-class carmaker," Chung Mong-koo, who is also co-chairman of the parent Hyundai Group, told a news conference.

In his first meeting with the media since he took over as chairman of Hyundai Motor and Kia Motors earlier in the month, Chung outlined plans to normalise the management of Kia Motors.

He said Hyundai and Kia could secure a five per cent globalmarket share by 2003 with annual production of 2.5 million units.

"We will take a step forward to become the world's ninth largest automobile group with the Kia takeover," Chung said. "Then thecountry's car industry will rank the world's fourth largest by 2005."

They currently rank 12th.Chung said Kia was expected to produce 800,000 vehicles in 1999 with 500,000 exported and the rest for sale locally."The two companies will share their overseas sales network and after-sales services to improve consumers' benefits and expand exports," said Chung.Kia sold 430,789 units, including 284,567 units for export, in the first 11 months of the year. Hyundai Motor, although it has a capacity of 2.4 million vehicles a year, is expected to sell about 800,000 this year.Chung also said his company would actively seek foreign investment, sell unnecessary assets held by Hyundai Motors and Kia and minimise spending by cutting costs in overlapping developments and sales management.

"But Kia's production lines will be fully utilised for the next few years. We plan to retain most Kia workers," said Chung. "The two-company and one-management system will continue for the time being. We have not thought about otheroptions."

But in the long run, the two auto makers would eliminate overlapping models and develop common-use platforms with an aim to cut development costs by as much as 30 per cent, Chung said.

"By integrating research and development functions of the two companies, new model development will take 18 months, compared with the current 24 months," Chung said.

He said Kia's debt-to-equity ratio would be brought down to 200 per cent by the end of 1999 from 814 per cent at the end of 1997.Having negotiated the deal earlier in the year, Hyundai Motor last week signed to acquire a 51-per cent stake each in Kia Motors and Asia Motors Co for 1.18 trillion won ($978 million).Hyundai won an international auction to take over Kia and Asia in October, beating out Ford Motor Co, unlisted Daewoo Motor Co and Samsung Motors Inc.

Chung denied speculation that Hyundai was trying to persuade Ford to invest in the Hyundai-Kia operation or to enter into a strategic alliance with it."Kia has been working together withFord in the compact car division. Other than that, we have no additional talks at the moment," said Chung.But Chung said his company would try to lure large scale foreign capital and seek strategic alliances with advanced companies in the fields of technology, production and marketing.