2023 Kia Sorento Lx on 2040-cars

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Average new-vehicle transaction price hits a whopping new peak in December

Elevated prices for products and higher borrowing rates led to record high transaction prices for new vehicles in December, with the average cost in the U.S. rising to a record $49,507, according to data from Kelley Blue Book released today. The report notes that ATPs — average transaction prices — have climbed above suggested retail prices — MSRPs — for more than a year. Sales volumes were up in December on a year-over-year basis by more than 5%, a situation Kelley attributed to improved supply. Overall sales for 2022, however, were off 8% year over year. “The transaction data from December clearly indicates overall prices showed no signs of coming down as we headed into year-end,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “Luxury prices fell slightly in December, but non-luxury transaction prices were up. Truck sales were particularly strong last month, and with many trucks selling for more than $60,000, a new record was all but inevitable.” Industry analysts claim the most obvious headwinds in the new car market are generated by higher interest rates, forced by the Federal Reserve's rate hikes intended to tame inflation, and by generally limited inventory. A recent report from J.D. Power showed that the average monthly payment for a new vehicle loan in December was $718, up $47 from a year ago. But 16% of consumers in December took out loans with monthly payments of over $1,000. Consumers think vehicles, and electric vehicles especially, are way too expensive. Fortunately, manufacturersÂ’ incentives, all but extinct in the past two years, are returning, especially in the electric-vehicle and luxury market, the Kelley data suggest. Plus, "With the new tax credits on the way, electric vehicle ATPs will drop lower for qualifying vehicles,” Rydzewski said. Non-luxury brands, such as Honda and Kia, showed particularly strong performance in December, with the average price paid at $45,578 — a record high and an increase of $994 month over month. Meanwhile, the average luxury buyer paid $66,660 for a new vehicle last month. Mercedes-Benz and Land Rover showed the most price strength in the luxury market, transacting between 2.6% to 6.5% over sticker price. But luxury brands Audi, BMW, Infiniti, Lexus, Lincoln, and Volvo showed the least price strength with some discounting in effect, selling 1% or more below MSRP in December, according to the survey.

S. Korea to raise concerns about EV credits, battery sourcing in U.S. visit

SEOUL — South Korean officials will meet U.S. counterparts this week to express "concerns" about the Inflation Reduction Act, which restricts who can receive U.S. subsidies for the production of electric vehicles and where firms can source battery materials. President Joe Biden signed into law this month a $430 billion bill, seen as the biggest climate package in U.S. history. The law requires that EVs be assembled in North America to qualify for tax credits, ending subsidies for several EV models, and that a percentage of critical minerals used in batteries come from the United States or an American free-trade partner. Automakers like Hyundai Motor face short-term competitive disadvantage to manufacturers of EVs that receive tax credits in the United States, while industry sources said Korean battery makers must make changes to mineral sourcing routes, which could affect cost adversely. South Korean officials are expected to tell counterparts from the U.S. Trade Representative's office and the U.S. Treasury that the new law may violate trade norms such as the U.S.-South Korea free trade agreement and the WTO agreement, the industry ministry said. Korean automakers will consider adjusting production plans to prioritize the construction of U.S. plants for example, the ministry said, while battery makers will seek to diversify where they source minerals from. Under new rules to kick in next year, at least 40% of the monetary value of the critical minerals in batteries will need to come from the United States or an American free-trade partner, with that proportion rising to 80% by 2027. Globally, the treatment of some 58% of lithium, 64% of cobalt and 70% of graphite goes through China, according to ministry data. FALLOUT The new rules are a major complication for battery makers LG Energy Solution (LGES), SK On and Samsung SDI, battery industry sources said. South Korea's LGES supplies Tesla and General Motors, while SK On and Samsung SDI supply Ford Motor and Volkswagen among others. The three battery makers together command more than a quarter of the global EV battery market, according to SNE Research. "It's become a huge headache ... Automaker clients said they didn't expect this new law would take effect this soon," said a South Korean battery industry source.

Kia goes Rebel with Forte Mud Bogger for SEMA

Kia is planning a raft of six custom creations for the SEMA show this year, each representing a different region of the United States. Just the other day we brought you a teaser showing off the Sorento built for adventure to represent the Pacific region. Now the Korean automaker is giving us a glimpse at the next addition to the lineup. Based on the Forte Koup is this Mud Bogger concept, representin' the Dirty South "and the inexplicable joy of getting dirty on four wheels." It's got a suspension lifted by four inches, 28-inch off-road tires, riveted fender flares, a panoramic vinyl roof panel, and a stripped-down interior. The seats have been replaced by a pair of Sparco racing buckets, the carpet's been removed and replaced with a spray-on bed-liner, and a full roll cage has been fitted and powder-coated to match the white wheels and brush guard. Scope it out in the teaser video, and watch this space for more on the rest of Kia's localized lineup for the Vegas tuner expo. FORTE KOUP MUD BOGGER Kia returns to SEMA this year embracing the spirit of adventure found on the open road with six highly customized, hand-built concepts, each showcasing unique geographic regions found throughout the country. Bringing to life the various car cultures that help define America's love of the automobile, here's a behind-the-scenes glimpse of the Forte Koup Mud Bogger, representing the adventurous American South and the inexplicable joy of getting dirty on four wheels. Giving this one-of-a-kind Koup the clearance to tackle extreme terrain started with a generous four-inch body and suspension lift along with meaty 28-in. off-road tires. To further accommodate the massive wheel and tire combo, the fenders and side skirts were modified and custom riveted fender flares added. A panoramic roof with a vinyl pushback top gives way to the stripped-down interior where the carpet has been removed and the entire floor is lined with Line-X protective coating. The stock seats of the Forte Koup have also been replaced with two Sparco Evo II Red Race Seats and the Forte Koup Mud Bogger incorporates a hand-built roll cage powder coated white to match the wheels. This Kia with a southern flare is purpose-built for off-road fun that takes you down the road less traveled. News Source: Kia Aftermarket SEMA Show Kia Coupe Off-Road Vehicles kia forte SEMA 2015 kia forte koup