The Korean word for ‘five’ sounds like “oh,” as in, “Oh, Snap!” or “OMG.” So in Korea, that makes Kia’s new K5 a “K.O.,” at least in name. But does Kia’s new Camccord fighter actually land a knockout on the all-important D-Segment, or is it a mere win by decision?
If you’re a driving enthusiast with a family and a sub-$20k budget, then a four-door sport compact tends to be the way to go. Unfortunately, you don’t have as many choices lately. Nissan’s, Honda’s, Suzuki’s, and VW’s suitably sporting offerings are priced out of reach. Mitsubishi is barely hanging on with the Lancer GTS. Toyota offers the Corolla XRS, but few enthusiasts take it seriously. Only the Mazda3 sells well in this segment, but the new styling isn’t for everyone. Perhaps the Kia Forte SX? The lone Korean offers the most horsepower for the lowest price, and for 2011 will be available in practical hatchback form. But is it truly a contender?
Former Audi stylist and Kia chief designer Peter Schreyer may be on a tear right now, giving Kia some of the sharpest shapes in the mainstream market, but when it came to the old Sedona, Schreyer clearly didn’t put in a ton of effort. As Examiner.com‘s Brady Holt points out, the 2011 Sedona minivan’s “restyle” was so simple, Kia didn’t even need to take new press shots. Instead they just photoshopped the new corporate grille and some side-mirror turn indicators onto the previous year’s press photos, and called it good. Weak sauce, guys.
Possibly having caught word of the fact that Americans are all-too willing to spend up to $500 extra for hatchbacks, Hyundai-Kia are aiming a load of trunkless wonders at our shores. First up should be Kia’s Forte Five-Door (above), which will probably hit dealers next year, alongside a new six-speed automatic transmission and optional navigation. These new options and the Forte5’s subtly slick looks should help the nameplate keep up its sales momentum. Sometime after the Forte5 (actual name may vary) drops, Hyundai’s new Accent should be joined by a five-door version as well. It’s not yet 100% clear if that model is headed stateside, but at this point, we’d be surprised if it didn’t join America’s burgeoning hatchback party. And finally, Hyundai should bring out one of the strangest little hatches in the business when its “Veloster” (again, actual name may vary) hits the market, likely in the next year as well. Recently-captured photos of its weird glass access-door-cum-hatchback are almost as intriguing as its claimed target of 40 MPG highway, possibly out of a turbocharged version of Hyundai’s direct-injection 1.6 liter engine. In any case, if Ford is to be believed and hatchbacks are back, Hyundai-Kia will (once again) be poised to make hay on the trend. And as far as we’re concerned, it’s all good news: the hatchback has been wandering the desert for too long.
This is the Hyundai ix20, a a European-style subcompact MPV in the style of Honda’s Fit. Or, more precisely, in the style of Kia’s Venga. In fact, the similarities between the new Hyundai and its Kia-branded predecessor are strong enough to hint at a future of GM-style brand differentiation issues for the Korean concern. And here’s the real irony: both cars share a platform with the Kia Soul, an American-style B-Segment MPV (possibly the only car to fit that description). Couldn’t Kia have rocked the Soul and left the ix20/Venga segment to Hyundai? Or was the Venga simply too good-looking to die? Either way, these two taught twins are a bit close for comfort.
I hate to get all “workers of the world unite”, but management seems to get away with a hell of a lot more than the rank and file. Take Prudential’s bid to take over AIG’s Asian arm. The bid failed and the whole exercise cost Prudential £377m (about $579.5m). Digest that figure for a second, then digest the next fact. The CEO, Tidjane Thiam, refuses to stand down over this mistake. Now consider this, if you, as a rank and file member, would cost the company you work for just 1 percent of that previous figure, could you honestly expect to keep your job? Now let’s look at the FIATsco incident. The whole affair cost GM $2b. Again, had you have cost the company you work for just 1 percent of that figure, could you keep you job? After writing this paragraph, I find the next story almost heartwarming. (Read More…)
When Renault and Nissan signed an agreement to form an alliance, few expected it to work. In fact, according to the book “Shift” (or was it “Turn Around”?), Bob Lutz was quoted as saying that Renault would be better off taking the money they spent on the Nissan stake, putting it on a ship, sailing it into the middle of the ocean and sinking it. Another accurate prediction from the One of Maximum Bullsh*t. The reason that the Renault-Nissan has worked so well so far is, according to Carlos Ghosn, communication. Without communication, how can you expect your partner to understand you? Sounds simple, right? Not to Hyundai and Kia. (Read More…)
Subaru and Hyundai/Kia have been two of the strongest-growing brands in America over the past year or so, but even their momentum wasn’t enough to prevent “uh-oh” moments this month. Subaru sales fell 23 percent, despite another strong showing from Outback (+37%, 8,053). Forester and Impreza, which launched Subaru to a 52% sales jump last August, were down 39 and 42 percent respectively. Hyundai was another big winner in last year’s C4C sales glut, and its volume was down considerably by comparison last month. Accent and Santa Fe were down by 50 percent or more, but the redesigned Sonata did manage to nearly double its August 09 volume. Even Genesis was up (as was Tucson), but Hyundai still ended the month with a 11 percent overall sales decline. The biggest contributor: Accent, which sold 3,844 compared to 10,099 in August 2009. Kia fell about 23 percent, as Forte, Sorento, Sedona and Soul gains were offset by huge declines in Rio, Spectra, Optima and Sportage. Full numbers after the jump…
The issue is it’s yet another brand. And given the fact we’re trying to allocate our resources to other areas that make the most sense, does it make sense to introduce another brand out there?
Kia Motors America product planning boss Orth Hedrick uses a rhetorical question to explain why the Korea-based automaker dropped its EcoDynamics sub-brand plans for the US market. The badge appears on European-market hybrid versions of the Forte, Cee’d and Sorento, and was planned as a global sub-brand. Instead, Kia is introducing many of the EcoDynamics components like low rolling resistance tires, electric power steering and more efficient alternators on some standard models, and will roll out a hybrid version of the next-generation Optima. With countless unnecessary brands and sub-brands littering the marketplace, Kia is smart to keep consumer focus on the Kia brand… especially in terms of associating it with good fuel economy. [via Wards Auto]
I’ve mentioned before that the UK Advertising Standards Agency (ASA) can be quite rabid when pursuing adverts with bold claims. Remember Renault’s run-in (nice alliteration) with the ASA about their claims for “zero emissions”? Or BMW, who tried to give the impression that their 3 litre, 6 cylinder hoonmobile, the Z4, was doing its bit for the environment (presumably by draining it of all that troublesome oil)? Well, the ASA is at it again. (Read More…)
Another month, another sales record for Hyundai/Kia. At this point, it’s getting tough to expect anything else. Elantra took top honors for the Korean concern last month, as Hyundai USA CEO John Krafcik confirms that sales of the new Sonata and the Santa Fe are both capacity restrained at this point. Krafcik tells Automotive News [sub] that an undisclosed US production capacity increase is in the works, as Hyundai is selling Sonata and Santa Fe faster than they can build them. Soul and Sorento are hitting their stride for Kia as well, with the Soul cresting 8k units last month and the Sorento topping 9k. But perhaps one of the best signs that Hyundai/Kia are in a good place is that only the aging Accent failed to beat its Cash-for-Clunker-driven July 2009 number. We’ll see what happens next month, but further out, Krafcik tells AN [sub] that Hyundai is targeting a 50 MPG fleet average for 2025. Even with no plans to sell pickups in the US, Hyundai’s prospects look bright in this market.
With Ford and Honda running away with the compact crossover segment, a tight pack of competitors is gathering around the 100k annual unit mark (graph after the jump). Hyundai has already thrown its redesigned Sorento into this fearsome battle with promising results so far (20k units YTD), but Kia’s Sportage has been battling in this segment since before it was cool. Literally. As far as we can tell, it’s the oldest continuously-sold compact CUV nameplate in the US market… which makes you wonder what a continuously-evolved Chevy Tracker might have become. Anyway, after years of Tracker-like neglect, Sportage is coming back with a fresh set of Peter Schreyer-tailored duds. Not to mention a direct-injection, turbocharged engine option (“270-plus horsepower” according to the press release), Bluetooth, and the UVO hands-free system (think SYNC). As you can imagine, the price has gone up some…
With Kia’s first US plant pumping out hot-selling new Sorentos, the Korean brand has been desperate to stake its claim to the transplant patriotism that has helped the Japanese automakers rise to dominance in the US market. In this latest ad for the new Sorento, Kia leaves the viewer with no room to doubt where the Sorento is made… and it’s already the second ad to feature Kia’s new West Point, GA factory. So, how does this all play back home in Korea? Hit the jump for the answer…
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24/7 Wall Street seems to believe that Hyundai’s junior brand could go away in the next year and a half, as it named Kia to its “Ten Brands That Will Disappear in 2011” list. This despite the fact that Kia’s first-half sales were up 15 percent over the first half of 2009, and Kia’s rolling 12-month sales are over 22 percent higher than its performance in the previous 12 months. So, why does 24/7 Wall Street see Kia disappearing?
Kia Motors Corporation is one of the two car brands of Hyundai of South Korea. It has always been a marginal brand. Its stable mate, Hyundai USA, has a reputation for high quality cars like the Sonata and Genesis. Kia sells “low rent” cars and SUV nameplates like the Sorento and Rio. As GM and Ford have already discovered, it is expensive to maintain multiple brands and storied car names, including Pontiac, Saturn, and Mercury, are disappearing. Most Kia cars sell for $14,000 to $25,000. Hyundai has several cars in the same price range. Hyundai’s Sonata has quickly become one of the best-selling cars in America, and its Genesis flagship model competes with mid-sized BMWs and Mercedes. The parent company will take a page from several other global car companies and dump its weakest brand.
If you’re reading this article, that means Fuhrer Schmitt has figured out under what moniker this article should be filed under. As far as I’m concerned it should be a “Question Of The Day”, but it could easily slot into “WTF” and “Wild Arse Rumor Of The Day”. So, here we go… (Read More…)
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