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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.

2017 Kia Sportage First Drive

It's hard to get excited about most mainstream crossovers, but the truth is this is one of the hottest segments of the market right now. The automotive space is saturated with a glut of these profit-making, two-box, semi-practical, soft-roading vehicles, and the tide isn't likely to abate soon. At first blush, Kia's redesigned 2017 Sportage isn't the most eye-catching of new products, but it's poised to do very well in the ongoing CUV wars. Progress in this kind of battle is often measured in inches of space, and the 2017 Sportage grows both inside and out. The new Kia measures the same 73 inches wide as its predecessor, but it gains 1.2 inches on the wheelbase, and 1.6 inches in overall length. There's more room overall for passengers, and there's 18-percent greater cargo space in back. Plus, the luggage floor can be moved down into a lower position to make more vertical space when needed. The Sportage was penned by renowned designer Peter Schreyer (he of first-gen Audi TT fame), but the end result is a bulbous-looking crossover, especially when viewed from the front – it's like a chipmunk with too many acorns in its cheeks. The "tiger-nose" grille – a hallmark of Schreyer – was moved up to accommodate the "ice-cube" fog lamps, while the headlights sweep back along the sides of the car. The A and C pillars are thinner, allowing occupants better visibility from inside the car, but from the outside, the rear three-quarter view looks blocky and cut up. The rear doesn't seem to match the rest of the car, either – it's more svelte and understated. Looking past its exterior design, the new Sportage is marginally, uh, sportier, thanks to a new, lighter, stiffer body, a redesigned suspension, and new engine tuning. Kia is mostly chasing improved fuel efficiency with its latest powertrain updates, as both engines have slightly lower outputs than their predecessors but have marginal improvements in fuel economy. The entry-level 2.4-liter inline-four (same as the Optima and Sorento) puts out 181 horsepower and 175 pound-feet of torque – decreases of only 1 hp and 2 lb-ft – and can be had with front- or all-wheel drive. Step up to the top-of-the-line SX Turbo and you get a 2.0-liter turbo-four that puts out 240 hp and 260 lb-ft of torque (that's 20 hp and 9 lb-ft less than before). Kia estimates the 2.4/FWD combination will return 23 miles per gallon city, 30 mpg highway, and 26 mpg combined, while the 2.0T/AWD will score 20/23/21.

Hyundai sticks to EV rollout plans, sees solid growth this year

SEOUL — Hyundai Motor said on Thursday it would not delay plans to roll out new electric vehicles and was upbeat about prospects for continued growth this year — a contrast to recent steps by rivals to cut back on EV output. Electric vehicle sales are growing strongly but not as much as carmakers had forecast, with demand hit by high interest rates. "We do not plan to dramatically reduce EV production or our line-up due to likely near-term hurdles as we believe EV sales will grow longer term," Seo Gang Hyun, an executive vice president at the South Korean automaker, told an earnings briefing for analysts. The Hyundai Motor Group, which encompasses the Hyundai, Kia and Genesis brands, said in April it plans to launch 31 EVs by 2030. This includes the launch of the Ioniq 7 SUV next year. Seo said Hyundai's EV sales next year could be slightly lower than previously expected, but the automaker had the production flexibility to boost output of gasoline engine cars if demand shifted that way and he did not expect a significant impact on overall sales. When asked about the impact on Hyundai Motor of the United Auto Workers (UAW) union reaching a tentative labour deal with Ford, Seo said the company expects the deal will have an impact on wage increases at its U.S. factories, but such costs could be covered as the automaker has been putting effort into reducing costs, such as in logistics. Hyundai Motor, which is not a member of the UAW, operates an assembly plant in Alabama and is building a factory to produce EVs in Georgia. For the third quarter, Hyundai booked a net profit of 3.2 trillion won ($2.4 billion), more than double its year-earlier result and beating an LSEG SmartEstimate of 2.9 trillion won, with the automaker helped by a favourable exchange rate. Sales also increased, climbing 8.7% to 41 trillion won on solid demand for high-margin gasoline SUVs. Sales of EVs and hybrids also grew, up by a third to 169,000 units. This month has seen a flurry of downbeat EV announcements. Citing flattening demand for EVs, GM said it would delay production by a year of Chevrolet Silverado and GMC Sierra electric pickup trucks at a plant in Michigan. Ford is temporarily cutting one of three shifts at the plant that builds its electric F-150 Lightning pickup truck. Tesla is also slowing plans for a Mexico factory, while GM and Honda announced on Wednesday that they were ending a $5 billion plan to develop lower-cost EVs together.