Examine US car sales for the past several months and that information reveals that Subaru, Hyundai and Kia have all performed quite well despite one of the worst economic downturns in our lifetime. Even as General Motors, Ford, Chrysler, Toyota, Honda and Nissan experience month over month losses of 35% or more, the three success stories are showing slight losses or in the case of Subaru even coming out ahead.

Hyundai, Kia Pull Ahead

But now we learn that a big reason for the increase in sales for the two members of the Hyundai Kia Automotive Group has much more to do with a sharp increase in fleet sales than just retail demand. According to Automotive News [subscription required], Hyundai and Kia have expanded their presence in the fleet market, replacing GM, Ford and Chrysler who have cut way back on this practice. Indeed, for the first quarter of 2009, fully one-third of Hyundai’s US vehicle sales were to car rental companies including National Car Rental, Hertz and Enterprise.

GM, Ford and Chrysler have long used fleet sales to help sustain market share, but that practice has had an adverse impact on resale values across the product line. For example, with a large number of 2007 and earlier Chevrolet Malibus in the fleet system, the resale price for these cars had long been held down even impacting customer perception of the 2008 and later Malibu. The newer Malibu underwent a major design overhaul for 2008 and is not part of GM’s rental car strategy at least to the extent of years past.

Big Three Rental Program Participation Down Sharply

The Big Three’s participation in rental programs decreased significantly in 2008 with GM down 90%, Chrysler off by 75% and Ford down by 65%. Hyundai and Kia have filled that vacuum with their own cars meaning your chances of renting either brand while visiting your favorite car rental company has now increased dramatically.

Though fleet sales help to increase market share, they also are among the least profitable sales for car companies. Ordered vehicles are typically sold at big discounts resulting in razor thin profit margins in exchange for increased profit share. Moreover, when these same vehicles are resold in the open market after one or two years, resale values drop thanks to a glut in inventory.

Lastly, customer perceptions about a brand are often formed when renting particular make/model with some poorly optioned fleet cars offering little reason for renters to consider the brand.

Also Read — Kia Soul’ster: Variation on a New Theme

Kia Motors has been on a roll of late, having introduced its hip, new Soul vehicle at last November’s Los Angeles Auto Show and then following that up with the cool concept Soul’ster at this year’s NAIAS in Detroit. With the Chicago Auto Show press preview days now underway, Kia is showing everyone that three is indeed a charm by introducing a new compact car, the Forte.

A 2010 model, the Kia Forte will be arriving in Kia showrooms late Spring or early Summer. The Forte will replace the Spectra which is the brand’s best selling model.

With a wheelbase of 104.3 inches, an overall length of 178.3 inches, an overall width of 69.9 inches and overall height of 57.5 inches, Forte offers one of the roomiest interiors in its class with seating for up to five passengers.

The Kia-engineered body achieves high torsional stiffness giving Forte better handling, smoother ride quality and greater refinement than its competitors, with a specially tuned suspension adjusted perfectly for responsive handling on curvy roads.

Forte boasts a class-leading 96.8 cubic feet of passenger volume, while driver and passengers have an impressive 40.0 inches of headroom and 43.3 inches of legroom in the front seats and 37.8 inches of headroom and 35.0 inches of legroom in the rear seats. Forte's trunk also offers an impressive 14.7 cubic feet of cargo space, one of the largest in its class.

EX and SX models offer a number of additional standard luxurious touches including: power windows and door locks; remote keyless entry; air conditioning; map lamps; steering wheel-mounted audio and cruise controls; and dual front and rear cup holders. Forte EX and SX models also include standard cruise control with an optional sunroof and leather-trimmed seats. Also standard on SX models is a telescoping steering column and sport cloth seats adorned with red stitching.

The Forte will be powered by a 2.0-liter DOHC four-cylinder engine producing 156 h.p. and 114 lb.-feet of torque. Transmission choices include a five speed manual or optional four speed automatic. A 2.4L I4 is optional, an engine that Kia says will produce more power than two of its chief competitors, the Toyota Corolla and the Mazda3.

Retail prices haven’t been announced yet, but I would expect that it would be close to what Kia is currently charging for the Spectra which starts at around $14,200.

Clearly, the Forte is a major design improvement over the Plain Jane Spectra, perhaps the right boost the Korean automaker needs to help it be competitive in a tight market.

Source: Kia Motors America

This past November, while at the Los Angeles Auto Show, I made sure that I was on hand for the Kia Soul reveal, in a bid to get a close look at the newest vehicle from the Korean automaker.

I came away from the Kia press conference impressed as I realized in the Soul that the automaker finally got it right by introducing a car that was fun, edgy and exciting.

Although not on sale until this Spring, Kia took advantage of all the media attention offered at the 2009 NAIAS to roll out the Kia Soul’ster, the latest variation on the Kia Soul theme.

“Soul’ster delivers something new, intriguing and relevant to today’s buyers – a fun, affordable convertible for active people who like to share good times with friends,” said Tom Kearns, chief designer, KMA. “Defying categorization and providing utility and practicality, the Soul’ster exhibits distinctive design cues and satisfies multiple consumer needs.”

Kia says that the concept is meant to project a hip industrial look with screw borders, reminiscent of a rivet design found on a fighter jet. The windshield is shortened for a sportier and hunkered down appearance. A two-piece top enables passengers to expose the front and back seating areas independently, using elbow-grease technology. The roll bar serves a dual purpose and includes a place for the slider tracks, while providing protection not found in traditional convertibles.

On the inside, Soul’ster takes even more progressive variations from Soul beginning with the new four-passenger seating design, a diversion from Soul’s five-passenger arrangement to provide spacious versatility.  Fold-flat passenger and rear seats combined with plenty of headroom is geared to make this car a hit for driver and passenger alike.

Like the Soul, the Soul’ster concept offers a design direction that is completely new for Kia. My thinking is that just like the Soul, the Soul’ster will be a hit with sun n’ fun crowd and that we’ll see a production version in Kia showrooms just in time for Summer 2010.

Source: Kia Motors America

2010 Kia Soul

I take back everything bad I’ve said about Kia. Well, not everything.

Today, Kia introduced the Soul – a Scion-like via with plenty of spark and what Kia hopes will be a whole lot of sales. Radically different from any model ever produced by the Korean automaker, the Kia Soul could be the car to single-handedly change the way people perceive the brand.

Box at the rear but rounded in the front and bottom, the Kia Soul has a look as if it is ready to go places.

If you’re surprised by my enthusiasm for the Soul given my dismissive comments made as recently as 2006 that the Kia Rio was a throw away car, as well as my thumbs down to the Kia Sedona minivan, and a general disinterest in the brand, then you’re not alone. Then again, I doubt that I’m the only one who had an epiphany of sorts today during the Kia news conference at the 2008 Los Angeles Auto Show.

To describe the Kia Soul you almost have to mention Scion, Toyota’s youth-oriented brand. But, the Soul has its own edge (or lack thereof in parts), a certain look that won’t confuse the car with anything else on the road.

My favorite color configuration on display at the show. I also liked a Soul with a butterscotch paint finish.

Designed with Generation Y in mind, Kia plans to release the car in early Spring 2009, offering several trim levels with pricing beginning in the teens. This will set the car up to compete against the Scion xB and xD as well as the all new Nissan Cube. Fortunately, the five passenger Soul isn’t as boxy as its competitors, a front engine front wheel drive model powered by a standard 1.6L I4 engine paired with a five speed manual transmission. Optionally a 2.0L I4 engine paired with the same manual gearbox or an optional four speed automatic will be offered.

Kia has been using the tagline “the power to surprise” a lot lately and the Soul does just that. The grill, headlight trim, dash stack trim, side mirrors, and wheels can each be customized, with the intent for young buyers to personalize their cars accordingly. Of the eleven, count ‘em eleven Souls on display, several featured custom paint schemes on the sides of the vehicle or on the hood.

Seats were firm, but comfortable. Even the rear seating offered plenty of legroom and support.

Inside, the cabin is clean and comfortable able to hold my six foot frame with room to spare front and back. I couldn’t count the number of interior storage areas (Kia says that there are 14) and the glove box is amazingly big and deep: a two-tier compartment that can hold all of your stuff.

Though some modern cars have cluttered dashboards, the Kia Soul does not. An attractive three-dial instrument cluster, LCD illumination, and a floating center stack design are significant visual features which offer access to the AM/FM/CD/MP3 audio system outfitted with SIRIUS Satellite Radio capabilities and three months complimentary service . Standard auxiliary and USB input jacks also can be found in the center console with full iPod controllability via the audio head unit and steering wheel controls.

Imagine the possibilities with the embedded storage compartment area. Arrange all of your tools, carry groceries, stash away personal stuff, keep prying eyes away.

Yes, the Kia Soul is made for the youngest drivers, consumers with not a lot of cash but still wanting a car that’ll take them places in style. I like the storage area behind the rear seat which, when the cover is lifted, reveals a compartmentalized storage area just perfect for putting in gear of various sizes in each compartment.

Kia is still mum about the price, but says that the Soul will be aggressively priced to attract buyers. This should mean that the Soul will be priced from about $16K with higher trim levels topping out in the low to mid 20s.

I got to hand it to Kia on this one. If the Soul is the beginning of a sea change for the brand, then Kia’s position in the global automobile market will only continue to improve. Worse, if they are seeking to appeal to a younger demographic, then they better be careful: this “mature” car buyer wouldn’t hesitate to consider the Soul, perhaps tricking it out too!

(Source: Kia Motors)

Putting the following three words together — Kia Luxury SUV — seems to be quite a stretch but if the Korean automaker has its way you’ll be singing the same song. To that end, Kia has created the “BorregoExperience” where the automaker is bringing the Kia Borrego to hundreds of families and individuals in select markets beginning immediately.

Test Drive Your Borrego

Drivers will get to test drive the Borrego for an undisclosed length of time and give their feedback to Kia, while giving the automaker the chance to showcase the SUV to people who might not be familiar with the brand.

Kia's newest model, the Borrego, is a midsize SUV powered by 3.8L V6 or a 4.6L V8, with a towing capacity of 5000 lbs. with the V6 and 7500 lbs. with the V8.

Kia's interior is plush and includes such standard amenities as air conditioning; power door locks, windows and mirrors; keyless entry; cruise control and an AM/FM/CD/MP3 six-speaker audio system with USB and auxiliary input jack and is the first Kia model to offer SIRIUS Satellite Radio.

The Borrego offers three rows of seats to carry as many as seven passengers. The SUV is slightly larger and wider than the Jeep Grand Cherokee, Chevy TrailBlazer, and the Toyota 4Runner.

The Borrego offers a number of firsts including: the brand's first V8 engine and a six-speed automatic transmission. Like all Kias the Borrego offers a comprehensive warranty program, which offers unprecedented consumer protection. Included in this program are a 10-year or 100,000-mile limited powertrain warranty, a five-year or 60,000-mile limited basic warranty, and a five-year or 100,000-mile anti-perforation warranty. A five-year/60,000-mile roadside assistance plan is also part of the comprehensive coverage program.

Korean automakers Hyundai and Kia are aggressively expanding in the Chinese market to keep pace with demand and to increase market share. Kia is partly owned by Hyundai, thus their relationship.

Hyundai recently opened a new assembly plant and has launched a new model, the Yuedong, which is an upscale version of its Elantra sedan. Local partner Beijing Auto is distributing the new car.

In 2007, Kia opened a plant in China capable of producing 430,000 cars annually. Coupled with the capacity to build 300,000 units at the new Hyundai plant and the importing of additional models from Korea, including the luxury Genesis sedan, Hyundai and Kia believe that one million annual units will soon be within reach. For 2007, the companies saw a 10% drop in sales to just 230,000 units as competition from Toyota, Volkswagen, and General Motors heated up.

Hyundai officials are also looking at producing a car in the $5-6,000 range to compete with domestic Chinese manufacturers and to remain competitive with new entry-level models from Honda, GM, VW, and Toyota.

(Source: Edmunds.com)