Kia started as a bicycle-parts manufacturer in 1944 and graduated to trucks in 1962. Unlike Hyundai, Kia appears content to operate initially from a modest base in the United States. Festiva has received high marks for its quality from reviewers and the Consumers Union, which publishes Consumer Reports magazine American and Japanese sales are respectable. ![]() Proof? Kia builds the Ford Festiva mini-car, which is based on the Mazda 121. Warner said, may establish a market niche because of its expressive styling, compared with vehicles like the Geo Tracker and Suzuki Sidekick that sell for about $13,000. But more important, that segment is loaded with good cars." Besides Toyota's Corolla, Kia's Sephia would compete against the Mazda 323, Ford Escort, Geo Prizm, Honda Civic and others, which start around $10,000. ![]() Power & Associates, an automotive marketing firm in Agoura Hills, Calif. "Kia's timing is terrible," said Thomas Dukes, an analyst for J. From mini-van to luxury roadster, consumer choice is endless and discounting is rampant. ![]() Experts agree a glut of world car-making capacity is saturating the American market with excess production buyers here can choose from nearly 50 brands and hundreds of models. To attract dealers and buyers, Kia will need more than low prices, high quality and a positive attitude. The vehicles were attractive, but they had the flimsy feel of most auto prototypes. Attendance for the convention was low, which may have accounted for what seemed to be only a trickle of dealers visiting Kia's room over two hours. Warner displayed hand-built prototypes of vehicles in a conference room at an Embassy Suites hotel. Winning a significant slice of the American market might be a long shot, but over a longer term Kia could learn a great deal and sharpen its skills by competing here.įlanked by his Korean colleagues at the National Automobile Dealers Association convention in Dallas earlier this month, Mr. But Kia is an embryonic force - it made its first car in 1973 - and its coming to America shows it has great international ambitions.įledgling auto makers like Kia are forging international partnerships and exploring foreign markets more aggressively. The limited size and scope of Kia's venture will hardly register on the radars of the General Motors Corporation or even the smaller Japanese makers like the Mitsubishi Motors Corporation. The large investment raised expectations and stretched dealers' finances, causing many to fail or to drop out as soon as sales retreated from the swift pace of 1986-88. In addition to introducing the Excel before its quality problems were solved, Hyundai erred by insisting that dealers open separate showrooms. Warner said he comprehended, and therefore could avoid, Hyundai's pratfalls, since he was a top Hyundai executive until he quit in 1989. Warner summarized Hyundai's marketing philosophy as "Japanese cars at used-car prices." Mr. Gregory Warner, the executive vice president of Kia's American effort, said Kia's quality was "the same as Japanese" but at sticker prices 10 percent to 15 percent less than those of comparable models, like the Toyota Corolla. Warner exudes optimism: "The events of the past six months suggest we are building the foundations of a strong company." ![]() Though the recession has forced small foreign car makers like Sterling, Peugeot and most recently Daihatsu to bow out of the American market, Mr. Prices for the vehicles have not been set yet. Initially, the car maker wants to recruit about 50 dealers in the Pacific Northwest, the Gulf Coast and the East Coast by 1993, when the cars go on sale. Kia, which is South Korea's second-largest automobile maker, after Hyundai, plans to sell a subcompact car, tentatively named the Sephia, and a compact utility vehicle named the Sportage. The company's sales nose-dived, and Hyundai dealers quit in droves. Fairly or not, Kia's arrival will remind Americans of Hyundai, which drove onto the scene in 1986 with a low-price subcompact, the Excel.Īlthough Hyundai had a few years of unprecedented growth, independent tests and complaints by Excel owners indicated problems with quality and reliability. Nevertheless, Kia Motors of South Korea is coming to America, bearing new models and a strategy intended to lure entry-level buyers.Īnother Korean auto maker, Hyundai, has already tried such a strategy. Just about everybody believes that too many car brands are crowding the market, and some Americans are particularly vexed about Asian imports.
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