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Kia slices K900 pricing amidst slow sales

Kia is learning the same hard lesson that Volkswagen learned so many years ago – it's not easy for a volume brand to sell a luxury car. The K900 luxury sedan has suffered through slow sales, moving just over 1,300 vehicles last year, and now the South Korean company is trimming the cost of entry to entice consumers. A new K900 Premium lowers the sedan's price by $5,000, from $59,500 to $54,500, not including a $900 destination charge, Motor Authority reports. While the price is lower, previously standard items, such as LED headlights, Nappa leather and a 17-speaker Lexicon stereo have been packaged as part of a new Luxury trim, which will maintain the original starting price. The two-tier scheme will force consumers to make a new decision about their K900, but that won't extend to the brute under the hood. A 5.0-liter V8 remains a standard item, making even the K900 Premium a tempting option for anyone that values straight-line thrust in a comfortable package. What are your thoughts? Is Kia merely rearranging the deck chairs on a sedan-shaped Titanic, or do you think trimming the price will do some good for the slow-selling K900? The new price is already reflected on Kia's consumer website, so head over, mess about and then come back and have your say about the move in Comments.

Kia says fewer than 30% of its dealers will get 2015 K900

Kia is moving into unknown territory with its $60,000 K900 luxury sedan in many ways. Not only will it act as the company's flagship model, it will be the Korean brand's first in the US with rear-wheel drive and a V8 engine. The first batch will hit showrooms in March, but according to Edmunds, it will be a soft launch in some ways, because only around 30 percent of dealers have paid a premium to sell the plush ride.
Kia has sent the selected dealers back to school to make sure they are prepared to sell the K900 to the industry's famously finicky luxury sedan buyers. The company believes its flagship model will be "a catalyst in support of our long-term strategy to elevate the ownership experience," said James Hope, Kia's National Manager for product communications, to Autoblog in an email. According to Edmunds, the dealers paid about $30,000 each in required training, tools and showroom displays. It wants the improvements to "shift the culture" in its dealers to be ready to welcome luxury buyers, according to Hope. Kia Director of Public Relations Scott McKee told Autoblog that the brand expects buyers to be "independent thinkers" from a blend of current Kia owners stepping up to the K900 and conquests from other luxury brands.
Kia has been slowly building awareness of the K900, especially with its Super Bowl ad, but it still has a long road ahead of it to prove what makes it crown jewel different. The company believes more dealers will sign up to sell it once public awareness for the new sedan grows. "There has never been a better time to challenge the status quo," said Hope. Also, a V6 model will launch in the future at a lower price, which should bring more people into the updated showrooms. Given what Kia has accomplished in the US in the last 20 years, it would be foolish to count the K900 out, but that doesn't mean it will be easy to break into the luxury sedan market.

Hyundai reveals CEO's pay for first time ever

Thanks to some government pressure, Hyundai's billionaire chairman, Chung Mong Koo, has revealed just how much he gets paid each year. Honestly, the amount is a bit lower than we'd expect considering he helms such a huge industrial empire. The 76-year-old chairman brought home $13 million in 2013, $5.2 million of which came from Hyundai's automotive business while both Mobis and Hyundai Steel chipped in $3.94 million, each. For reference, Ford CEO Alan Mulally netted $23.2 million in 2013, although the vast majority of that money came from stock options.
The push for Chung to reveal his pay was part of a larger effort by the South Korean government called the Financial Investment Services and Capital Markets Act. The act forces several thousand companies to release info on annual pay, bonuses and severance for employees earning over $5 million won ($469,000), according to Bloomberg.
"With the disclosure of the executives' compensation, the pressure to deliver better profits will increase," said Heo Pil Seok, the CEO of Midas International Asset Management. It seems to be working, as Hyundai shareholders, of which Midas is one, have seen their shares increase by 6.1 percent in 2014, which includes a 1.2-percent jump as of yesterday, according to Bloomberg.