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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.

Foreign automakers pay from $38 to $65 per hour to non-union workers

As leaders for the United Auto Workers gather in Detroit for their Special Convention on Collective Bargaining to work out the negotiating stance for this year's new labor agreements with the Detroit 3 automakers, what they most want to do is figure out how to eliminate the two-tier wage scale. However, the lower Tier 2 wage has allowed the domestic automakers to reduce their labor costs, hire more workers, and compete better with their import competition. As it stands, per-hour labor rates including benefits are $58 at General Motors, $57 at Ford, and $48 at Fiat-Chrysler – a reflection of FCA's much greater number of Tier 2 workers. The Center for Automotive Research released a study of labor rates (including benefits) that put numbers to what the imports pay: Mercedes-Benz pays the most, at an average of $65 per hour, Volkswagen pays the least, at $38 per hour, and BMW is just a hair above that at $39 per hour. Among the Detroit competitors, Honda workers earn an average of $49 per hour, at Toyota it's $48 per hour, Nissan is $42 per hour, and Hyundai-Kia pays $41 per hour. The lower import wages are aided by their greater use of temporary workers compared to the domestics. Automotive News says the ten-dollar gap between those foreign camakers and the domestics turns out to about an extra $250 per car in labor, which adds up quickly when you're pumping out many millions of cars. That $250-per-car number is one that, come negotiating time, the Detroit 3 will want to reduce, as the UAW is trying to raise both Tier 1 and Tier 2 wages. Another wrinkle is that the domestic carmakers are considering the wide adoption of a third wage level lower than Tier 2. Some workers who do minor tasks like assembling parts trays kits and battery packs already make less than Tier 2, but the UAW will be quite wary about cementing yet another wage scale at the bottom of the system while it's trying to fight a bigger battle at the top. News Source: Automotive News - sub. req., BloombergImage Credit: AP Photo/Erik Schelzig Earnings/Financials UAW/Unions BMW Chevrolet Fiat Ford GM Honda Hyundai Kia Mercedes-Benz Nissan Toyota Volkswagen labor wages collective bargaining labor costs

Chrysler and Hyundai join Pepsi and Coke as top Super Bowl spenders [w/ video]

Super Bowl XLVIII is barely a week away, and some of the early ads are already leaking out. It's timely then that The Street has released rankings of the top five Super Bowl advertisers since 2009, showing Chrysler and Hyundai/Kia taking two of the spots with $131.7 million in cumulative spending.
Since 2010, the cost to air a 30-second Super Bowl ad has risen from $3 million in 2009 to about $4 million in 2014, and about a fifth of advertisers opt for a one-minute ad, which doubles costs. Last year, the ads brought in $292 million, and they have brought in roughly $2 billion since 2010.
Chrysler has spent $64.3 million since 2009 to make it the fourth highest spending company in the last five years. In that time, the company has rebranded itself as it emerged from bankruptcy with the Imported from Detroit ad campaign that premiered in 2011 and last year's God Made a Farmer Ram Trucks ad. Its 2012 Halftime in America sparked national debate about whether it was also a reference to the upcoming presidential election.