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Why Kia doesn't need a premium brand

Hyundai's creation of the Genesis luxury brand means it and fellow Korean brand Kia have finally hit the mainstream in the U.S. – as far as products are concerned – after nearly three decades of trying. Which is about as long as it took Toyota and Nissan to roll out Lexus and Infiniti, respectively. It's history repeating itself. Genesis is supposed to be the way Hyundai's premium models get the respect they deserve, without carrying the baggage of a name associated with frugality. Hyundai has, in fact, built up a reputation over the last decade or so for cars that compete head-on with class leaders, rather than aim to be 90 percent as good for 75 percent of the price. And because Kia shares a number of components with Hyundai, its vehicles have also steadily become not only better mainstream vehicles, but have continued to aim higher than their price points. Does Kia need to follow now in its parent's steps with a prestige brand to market its most expensive models? I'm aware of the Kia K900, the company's deepest foray into luxury territory notably occupied by Lexus. Kia, however, has consistently been pushing this $60,000 full-size luxury sedan along with $0 down, low monthly payment lease deals. Turns out there really aren't many people looking for a full-size Kia luxury sedan. Or maybe they're just waiting to get it for $20,000 in a couple of years. Consider the K900 and Genesis when I convince you Kia already makes upscale cars to rival those with premium badges. They just don't happen to be its most expensive model. Shortly after Hyundai's announcement it would spin its luxury models off into the Genesis brand, I spent a few days with a 2016 Kia Sorento SXL. And I'm willing to call it a more convincing attempt to get people out of luxury cars than the K900. Driving the Sorento is not an emotional experience. You feel parental driving it, thinking you might've forgotten to pick your kids up until you remember you don't actually have kids. But after settling into the nicely stitched and perforated leather seats, you respect its comfort, quiet and amenities. The headliner is soft, the stitching on the dash top is convincingly real and everyone is impressed by the sharp graphics on the touchscreen and the slick powered shade that reveals an expansive glass roof. A Kia Sorento costing more than $46,000 sounds absurd until you wonder how much better an Acura MDX or Lexus RX350 is when those cost as much as $10,000 more.

Hyundai launches Blue Link update for smartwatches

Hyundai released an update for its Blue Link app last week that makes it work through smartwatches. The app is downloaded through Google Play and works with Android Wear watches. A version that's compatible with Apple smartwatches is under development, and Hyundai expects to launch it soon after the Apple Watch launches April 24, a spokesman said. The Blue Link smartwatch app was revealed this year at the Consumer Electronics Show. Features include remote engine start and stop capabilities, remote door locking and unlocking, the ability to honk the horn and flash the lights and a function to call roadside assistance. All of the features can be done through voice commands. Hyundai's smartwatch app will work with cars equipped with first and second generations of Blue Link. The smartwatch app is a companion feature, and it needs to be paired to the owner's smartphone that has the Blue Link app. Blue Link launched on the 2012 Sonata and rolled out across Hyundai's lineup in 2013. The second-generation system is available on the 2015 Genesis, Sonata and Azera. "Blue Link subscribers and gadget lovers will appreciate a more convenient way to interact with their Hyundai vehicles," Frank Ferrara, executive vice president, customer satisfaction, Hyundai Motor America, said in a statement. HYUNDAI BLUE LINK SMARTWATCH APP AVAILABLE FOR DOWNLOAD ON GOOGLE PLAY Android Wear Can Remote Start Your Hyundai * Smartwatch App Compatible with First and Second Generation Blue Link Equipped Hyundai Models * Commands Work with Voice Recognition FOUNTAIN VALLEY, Calif., Mar. 4, 2015 – Today Hyundai owners no longer need to fish out a phone from a pocket or purse to remote start, lock or unlock their car using Blue Link(tm). They also won't need to look down at a phone to find their car in a crowded parking lot if they can't remember where they parked after a sold out sporting event or a business trip. This is because Hyundai has launched its Blue Link smartwatch companion app to help owners with these tasks. The latest Blue Link app update on Google Play now includes the smartwatch companion app for Android Wear. The Blue Link smartwatch app will be available for the Apple Watch shortly after its release. "Blue Link subscribers and gadget lovers will appreciate a more convenient way to interact with their Hyundai vehicles," said Frank Ferrara, executive vice president, customer satisfaction, Hyundai Motor America.

We visit Hyundai's Nurburgring test center

Understanding the achievement and the message of Hyundai Motor Group having a European Technical Center at the Nurburgring might be easier if we look at what Hyundai has done in the US. In 1985 Hyundai Motor America set up shop in California. The first car sold here was the 1986 Excel, a rebodied Mitsubishi Mirage with a Hyundai interior treatment. This was the first Mirage, which also served as the Chrysler Colt in hatchback form and circled back as the Mitsubishi Precis so Mitsu could get around Japanese automakers' voluntary export quotas of the time. The Excel made such an impression on reviewers and buyers that in Car and Driver's 1986 review they wrote that "'astounding' is not too strong word" to describe the company's progress, and said, "Our guess is that Hyundai will be a major force in the US car market almost from the moment it opens its doors." Hyundai sold 168,882 Excels in the US in its first year, back when the Ford F-Series led all comers with 544,969 sales. That's what happened. The company sold 168,882 Excels in the US in its first year, back when the Ford F-Series led all comers with 544,969 sales, the Chevrolet Celebrity came second of all vehicles with 408,946 sales, the Honda Accord seventh with 325,004 sales. The Excel sold even better the following year, and the year after that. Three years on, buyers began to discover that one of the things the Excel did best was disintegrate. It's been called "fantastically crappy," Popular Mechanics would later say the Excel "deserved to fail," and they decomposed so thoroughly that you'll have a hard time finding one in any junkyard. Buyers got so allergic to the Flying H badge that sales declined for ten consecutive years. By 1999, when Hyundai's model range was four times larger than it had been in 1986 – Accent, Elantra, Sonata, Tiburon – the brand sold just 90,217 cars in the US. Two important things happened around that nadir. In 1998, as a way of reassuring potential customers, Hyundai became the first automaker to introduce a 10-year, 100,000-mile warranty. In 1999, Mong-Koo Chung became the CEO of Hyundai Motor Company, promoted from 11 years as CEO of Hyundai Motor Service, a role that put him in charge of global warranty claims. Having spent all those years of his life wading through that carnage, he swore when he took the top spot that he'd get the situation fixed. In 2014 the JD Power Initial Quality Survey ranked Hyundai the leading non-premium brand.