No, Kia Isn’t Going Out of Car Business: They Reported Growth in May
While many South Korean automakers are in danger of disappearing according to an analyst with 24/7 Wall St by 2011, many were surprised to see Kia in the top 10 list; Really? Kia is one of the cheapest car brands that you can buy ranging from $14,000 and up. Alex Fedorak, public relations director at Kia had something to say about this.
He went on to comment that Kia is just now gaining the public awareness it deserves through many of their advertising efforts and a super bowl commercial that was presented earlier in 2010. With 15 straight years of increased sales and the opening of a new plant in West Point, it is certainly difficult to argue with Alex. It makes you wonder exactly what sources this analyst got his information from.
In fact, In May, Kia reported that their sales had almost a 15% increase. While other auto brands such as GM and mercury were getting killed off because of too many similarities between them and other vehicles, Kia is working hard to provide something different. Yes, it has some components that are similar to the Hyundai, but these are definitely two different vehicles.
As you look through the Huffington post and Business week, you will find that Hyundai owns less than 40% of Kia. So, when we are talking about whether the company will sell their share of the brand and become a complete Hyundai operation, it does not make sense. As of 2010, Kia has shown no evidence of slowing down and their sales speaks for itself.
How Is It Predicted That A Company So Well Is About To Shut Down?
Many people believe that Hyundai already sells within a price range similar to Kia, but Kia is able to present models to the public with much success. This is not even something that the all time favorite Honda can do. Not to mention, most of the models presented have obtained reviews that are quite favorable.
Even after the prediction was made, Kia had over a 60% increase in their profit. The “weakest brand” is what they called Kia, but their sales in Korea went up another 20-25% and almost 10% in the U.S. The crazy part is that the predictions for the fourth quarter are pretty much the same. Could the prediction that Kia would be going out of business have something to do with 2009?
This was a time when the auto sales climate was horrible, GM and Chrysler fell into bankruptcy and Kia was one of those vehicle brands that did not flourish. Sure, they may have had a down point but what company doesn’t? It has not stopped them from improving their brand and making money ever since. Alex makes it clear that the only place that Kia can go is up.
By expanding their business in the U.S., their profits are increasing. If it is true that Kia is going out of business, it is definitely not for many years.