Kia has announced it is planning to sell the truck wash business it owns and run by the name of the brand, Kia Truck Wash, to an unnamed buyer.
The company, which operates a fleet of more than 2,200 vehicles in the United States and Canada, says it plans to sell off the business for $5.3 million.
The news comes as Kia is struggling to revive sales of its trucks.
In the fourth quarter, Kias sales fell 9.4 per cent, according to the company’s quarterly report.
The Canadian automaker said the sale will close in the fourth week of April, and that it expects the deal to close in May.
Kia said the sales drop is “due to the loss of the truck operation in Mexico and the increased competition in the Canadian market.”
Kia will be selling the Kia T2 in the U.S., which will continue to operate under the name Kia’s Truck Wash.
The U.K.-based company said it will keep the name and logo, but will also introduce new products and new technology in the future.
Kias is also selling the Canadian brand’s fleet of diesel-powered trucks.
It said it sold 1,200 of the trucks in the first quarter.
“While we have not had a chance to fully evaluate the potential buyer, we are very excited to continue to be part of Kia,” Kia President and CEO Brian White said in a statement.
“We believe this transaction will help Kia remain focused on the success of its U..
S. and Canadian brands, which we have built over the past decade.”
The company has been struggling to keep up with the demand for its trucks in recent years.
Kies is selling its diesel-electric vehicles and trucks in Canada for $1,800 (U.S.) a tonne, compared to $3,300 in the same period last year.
Kiosk and Kiosnap have been selling trucks in their own countries since 2013.
Koesports is owned by the Ural-owned company Kiosks.