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Kia using quality and technology to increase sales and brand prestige

Kia is a long way from hawking the anonymous lozenge known as the Sephia on our shores. That was only 1994, though, and in less than 20 years the company has gone from judging its aspirations against Japanese budget competition to walking auto show floors checking out the German standard-bearers for tips on how to increase sales and brand prestige. In an interview with Automotive News, Kia executives laid out their plan for carving out a Volkswagen-like niche for the company whereby they could be viewed as the premium pick in a volume segment. Concepts like the Kia Cub, above, would seem to point in this direction.
Kia is keen to make sure its sales targets don't impinge on its quest for better and better quality.
Kia's prime directive is "an unrelenting focus on quality." The Japanese brands earned a reputation for bulletproof reliability, and Kia is keen to make sure its sales targets don't impinge on its quest for better and better quality - neither in-house nor for its suppliers, a trade-off we've seen go wrong before. It has a Pilot Center that studies each new model for potential production problems before being given the approval for manufacture, and it isn't until the quality control department gives the okay that manufacture can begin.

Hyundai-Kia forecasts slowest sales growth in 8 years

Even with the arrival of the new Hyundai Genesis Sedan (above) and the expected introduction of at least two other new vehicles in 2014, Hyundai-Kia is estimating its sales will only increase by about 4.1 percent this year. Bloomberg has found that figure, which works out to a total of 7.86 million vehicles worldwide, to be lower than average analyst estimates of eight million vehicles. If the automaker is correct, that figure will represent the most sluggish growth for the Korean brands since 2006.
Based on an exchange rate of 1,050 won to the dollar - right now it's trading at anywhere from 1,050 to 1,052 depending on where you look - Hyundai is predicting a 3.8-percent uptick for sales of 4.9 million units, while Kia is expecting a 4.7-percent uptick for sales of 2.96 million units. That exchange rate is predicted to be part of what will hamper sales this year, with a stronger South Korean won making Japanese cars more price-competitive when cross-shopped. It's unclear how Hyundai derived its exchange rate, but 1,050 won to the dollar almost matches the 52-week high for all of 2013.
The company chairman mentioned a "low growth era" in the world economy, and weaker US sales are rumored to at least part of the reason John Krafcik recently vacated the post of Hyundai Motor America CEO, a post that has been filled by executive vice president of sales, David Zuchowski. That unexpected news capped a year in which two top execs resigned over quality issues and recalls and Hyundai agreed to settle a consolidated lawsuit over inflated fuel economy ratings for $395 million.

Kia Sportage makes a funny face in Frankfurt

The all-new Kia Sportage has made its big debut at the 2015 Frankfurt Motor Show, introducing sheet metal inspired by the brand's previous concepts. Our first post on the new model only featured a trio of exterior images, we now have shots of the redesigned cabin. As we said originally, both the Provo and Niro, a pair of 2013 concepts from Geneva and Frankfurt, inspired the exterior design. We still aren't sold on the new fascia, which reminds us of the old Subaru B9 Tribeca. Perhaps it'll grow on us. As for the interior, which we're seeing for the first time, it's, well, kind of exactly what we expected. The quality appears to be good and the overall design conservative. Conventional instruments flank a small color display that looks to be no more than four inches, while a larger touchscreen sits atop the center stack. Its main functions are controlled via a series of buttons found below the screen and above the HVAC controls. While the model on display in Europe sports a manual transmission, we'd expect no such gearbox to be offered in the US. Here, the smart money is on a six-speed automatic being standard, and we're betting there won't be any huge changes in the engine lineup. That should mean a 2.4-liter, four-cylinder in the base and volume models, while the range-topping SX will likely offer Hyundai/Kia's popular 2.0-liter, turbocharged four-cylinder, just like today's Sportage. We've got a full gallery of live images of the new Sportage available at the top of the page. Have a look and let us know what you think of Kia's work.