Tuesday, September 22, 2009

The Case for Kia

While the rest of the automotive industry struggles, few have noticed the bright spot in the business - Kia, and its corporate parent, Hyundai.

Sales are up dramatically, but more importantly, both Kia and Hyundai are producing high-quality, stylish and relevant cars.

In the last few months, Kia has introduced the Soul, targeted at the youth market, to many positive reviews. It's a well-made, inexpensive small car with character, well-suited to customization and sure to draw attention. Kia is trying to out-Scion Scion, and they may just do it. On top of that, they've come up with a clever, catchy ad campaign that incorporates music that is getting people's attention, too.


At the same time, they replaced the Spectra with the Forte. The Forte has an impressive feature list, a good looking design inside and out, and a very competitive price. Up against perennial winners like Civic, it shows quite well. And the good-looking coupe version (Koup, in Kia-speak) should appeal to style-conscious people on a tight budget, and maybe even those with a little extra cash to spend, too.

Over at Hyundai, they're definitely moving upmarket. Everything in the Hyundai lineup looks and feels solid and expensive. They're incorporating content not generally available at the price point from the competition, and they're moving into segments previously reserved for the Europeans and the luxury brands.

The Genesis is a credible competitor in the near-luxury segment, with good looks, strong content and high-quality materials and construction. It'll never displace BMW for the car nuts (no matter how much Hyundai pitches it that way), but the folks at Buick and Lexus should be nervous. And the Genesis coupe is even a strong player against cars like the Nissan 370Z, with its RWD and strong styling.

While the Americans have been watching the Japanese, and the Japanese have been watching the Europeans, the Koreans have been sneaking up on us. Hyundai-Kia is now the fourth-largest automaker in the world (and the sixth-largest in the US), and given the current state of GM, it wouldn't be at all surprising to see them move up a step or two in the near future.

Competition is a good thing, and Korea is certainly bringing it. Now let's see if the Americans and Japanese can step up their game to match.

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