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Friday, December 31, 2010

Kia to Introduce Two New Models Within Six Months




Ryan Beene


Automotive News
December 20, 2010 - 12:01 am EST

MIAMI -- Kia plans to replace its slow-selling Amanti sedan this year -- close on the heels of the similarly sized, redesigned Optima sedan now being rolled out. But the exact timing of the launch is undecided.

The Amanti replacement, tentatively called the Cadenza, had been expected in April. Kia officials now say only that that car will be launched in the first half of 2011.

Bringing out the two sedans in rapid succession could create a problem, although U.S. executives say the vehicles are aimed at different customers.

The base Optima LX and midgrade Optima EX sedans have begun arriving at dealerships, and the Optima Hybrid will debut in the first quarter as the first hybrid in Kia's lineup.

The Kia Cadenza, which replaces the Amanti, is aimed at sedans such as the Toyota Avalon and Buick LaCrosse.

The Cadenza, already on sale in South Korea as the K-7, is longer and wider than the Amanti and is expected to be powered by a 3.5-liter V-6 engine. The Amanti name will disappear.

Potentially, the Optima and Cadenza "could have some overlap," Orth Hedrick, director of product planning for Kia Motors America, said here at the Optima Turbo launch. "But in our mind, they're aimed at two different buyers."

Hedrick said the Optima is targeted at mainstream buyers of mid-sized sedans, while the Cadenza will go after a different group. He declined to specify the company's plans for the Cadenza, but its look and dimensions would place it in a category similar to the Toyota Avalon and Buick LaCrosse.

At 196 inches, the Cadenza is less than five inches longer than the Optima. It sits on a 112-inch wheelbase, compared with the Optima's 110 inches.

Meanwhile, Kia is also scheduled to launch a redesigned Rio subcompact next fall and give its Soul small crossover a slight freshening next summer.

"This is absolutely the fastest product cadence that I've personally been involved with, and it just keeps coming," said Hedrick, formerly a product planner at Nissan North America and Toyota Motor Sales U.S.A.

Kia, which has launched six new or redesigned products since early 2009, has increased its market share for three straight years. It also recently spent about $1 billion on a plant in West Point, Ga., where it is hiring 1,000 employees.

So company executives say they were perplexed when the financial blog Wall Street 24/7 recently named Kia as one of 12 brands that will disappear in 2011, along with the likes of Blockbuster, Merrill Lynch and Moody's.

The blog argued that Kia sells "low rent" vehicles. Michael Sprague, vice president of marketing for Kia Motors America, called the notion "ridiculous."

Said Sprague: "Most logical people look at these kinds of lists and ignore them."

Thursday, December 30, 2010

CHRYSLER AND FORD RECALL VEHICLES

Automotive News

December 30, 2010 - 2:01 pm EST


CHRYSLER RECALL

DETROIT (Reuters) -- Chrysler Group LLC recalled more than 144,000 vehicles in three separate filings with federal regulators posted today.

In the largest of the three recalls reported to U.S. regulators, Chrysler said 65,180 Dodge Journey vehicles for the model year 2009 could have faulty wires within the front door wire harness.

Should those wires break, it could interrupt the circuits for the side impact sensors and de-activate the side airbag, Chrysler said in a notice to the U.S. National Highway Traffic Safety Administration.

Chrysler also recalled 56,611 Ram 1500 trucks for the model year 2011 because the rear axle bearing could seize, increasing the risk of a crash.

Additionally, the automaker recalled 22,274 model year 2008 to 2011 Dodge Ram 4500 and 5500 vehicles because the left ball stud could weaken and hurt the driver's ability to steer the truck.

FORD RECALL

Automotive News
December 30, 2010 - 10:00 am EST

UPDATED: 12/30/10 12:36 pm ET

DETROIT (Reuters) -- Ford Motor Co. is recalling about 20,000 new vehicles in North America, mainly its heavy duty pickup trucks, due to the chance that an electrical short could cause a fire, Ford and U.S. federal regulators said today.

Ford will inform owners of its F-series pickups, small sports utility vehicles Edge and Lincoln MKX of the potential problem by Jan. 10, according to a filing with the U.S. National Highway Traffic Safety Administration.

About 15,000 of the affected vehicles were sold in the United States, and most of the rest in Canada, said Wes Sherwood, Ford spokesman.

Sherwood said the automaker is not aware of any injuries, crashes or fires resulting from the issue.

In a six-day period, a supplier not identified by Ford made body control modules that may produce an electrical short, Ford told NHTSA in a filing.

Sherwood said the suspect vehicles were built between late October and mid-November.

"If an electrical short develops, an overheating condition may occur which can result in an unattended vehicle fire," the NHTSA filing said.

Of the nearly 20,000 vehicles affected, 13,200 are Super Duty F-Series trucks, which are the F-250, the F-350 and the F-450 models.

Some 476 F-150 pickup trucks were affected. That model is the biggest selling vehicle in North America.

About 6,200 Edge and MKX models are affected, Sherwood said. Edge and MKX are also known as crossover vehicles, because they are built on a car platform rather than a truck platform as are larger SUVs.

Ford will pay for repairs performed at Ford dealerships. Sherwood said the repair time is relatively short, but he did not specify how long each repair will take or how much they will cost the automaker.

Wednesday, December 22, 2010

Insurance Institute Top Safety Picks

(Adapted from The Associated Press, Ken Thomas, December 22, 2010) 

WASHINGTON (AP) -- South Korean automaker Kia was one of the vehicles to lead the insurance industry's annual list of the safest new vehicles, used by safety-minded consumers looking to buy a new car.


The Insurance Institute for Highway Safety recognized 66 vehicles on Wednesday with its "top safety pick award" for the 2011 model year, the most-ever awarded by the Virginia-based group. The number was more than double the 27 vehicles selected last year.

Hyundai Motor Corp. and its affiliate Kia Motors Corp., and Volkswagen AG and its Audi brand received the most awards with nine, followed by eight awards apiece by General Motors Co., Ford Motor Co. and Toyota Motor Corp. The awards, used in advertising to attract car buyers, bolster Hyundai and Volkswagen as they attempt to build a larger foothold in the United States.

Kia was recognized for the Optima midsize car, the Forte and Soul small cars, and the Sorento and Sportage SUVs.

GM's winners include the Chevrolet Malibu, Cruze and Equinox; Cadillac CTS and SRX; Buick LaCrosse and Regal and GMC Terrain. Chris Perry, vice president of Chevrolet marketing, said the award would build on "the already strong global safety reputation of the Cruze."

The vehicles were chosen for protection in front, side and rear crash tests. To qualify for the award, the insurance industry group also requires the vehicles to have anti-rollover electronic stability control, or ESC, and receive top scores in roof strength tests.

Institute president Adrian Lund credited automakers for "quickly rising to meet the more-challenging criteria for `Top Safety Pick.'" He said several automakers have requested tests for new models coming out early next year and Lund predicted more winners would be added

Monday, December 20, 2010

New Sierra HD Concept














All Terrain concept hints at GMC Sierra HD's brawny future

Mike Colias

Automotive News
December 17, 2010 - 7:14 am EST


DETROIT -- GMC is showing off an off-road, heavy-duty pickup concept that hints at bold, muscular styling for the next-generation Sierra HD.

The GMC Sierra All-Terrain HD concept, underpinned by the 2011 Sierra 2500 HD's re-engineered four-wheel-drive chassis, sports a wider track, brawny grille and an extra 3 inches of ground clearance. It was unveiled yesterday at a media preview for next month's Detroit auto show.

The concept was given the same 6.6-liter Duramax diesel engine mated to an Allison 1000 six-speed transmission used in the Sierra HD. A restyle of the Sierra HD is expected in 2014 or 2015.

“You certainly could take it as a hint” of where the next-generation Sierra HD is headed, GMC design manager Carl Zipfel said.

While the massive 35-inch tires, mounted on 20-inch aluminum wheels, and Fox off-road shocks likely would be for “more of a niche or special edition” vehicle, Zipfel said many of the styling features could stick in Sierra restyle.

An all-terrain GMC pickup would compete with the Ford F-150 SVT Raptor and the Ram Power Wagon. It also would offer General Motors Co. an off-road vehicle to replace Hummer.

“It's [for] that premium customer who demands towing and hauling capability and off-road capability in one package,” Zipfel said.

Flared fenders and a streamlined front bumper fully expose the tires and allow for more ground clearance -- 21.1 inches. A beefed-up, forced-induction hood feeds more air to the engine.

The crew cab truck's 5-feet-8-inch bed, taken from GMC's light duty lineup, is nearly a foot shorter that the Sierra HD for better off-road handling. It includes a pair of lighted storage compartments on the sides of the bed.

Motorized, illuminated assist steps for both the cab and cargo bed offer easier access and maximize ground clearance.

GMC didn't say if or when it would green light the pickup.

Lisa Hutchinson, GMC product marketing director, said in a statement: “Although it is strictly a concept, it is a pretty realistic one.”

Tuesday, December 14, 2010

Toyota Reputation Takes a Hit - GMC and Kia Rise

Toyota reputation drops among U.S. new-car buyers, J.D. Power says


Laurén Abdel-Razzaq

Automotive News
December 14, 2010 - 4:37 pm EST

UPDATED: 12/14/10 6:41 pm ET

DETROIT -- An increasing number of new-car shoppers are staying away from Toyota showrooms because of the company's quality and safety problems, according to a study by J.D. Power and Associates.

The market research firm's 2010 Avoider Study, which was released today, found that 19 percent of new-vehicle shoppers surveyed said they avoided Toyota because of “bad reputation of manufacturer” -- a startling increase of 17 percentage points from a year ago.

Fifteen percent of respondents cited a “bad experience with this manufacturer,” up 12 percentage points from 2009. And 15 percent said they were “concerned about the future of this vehicle brand,” up 11 points from 2009.

Respondents could cite several reasons why they did include a brand in their search.

“In terms of reliability perception, Toyota has always done well in the past,” said J.D. Power and Associates analyst Kerri Wise. “A couple of areas where Toyota really took a hit were in terms of bad reputation of the manufacturer and bad experience with the manufacturer.”

.........................................................................................................................................................
U.S., Koreans make strides

U.S. and Korean car brands have been the most successful at improving customer perceptions of reliability this year, according to the new J.D. Power study, which measures which brands and models customers choose not to consider when shopping for a new vehicle.

Among the most improved brands in terms of consumer perception of reliability this year are Ford, GMC, Hyundai, Kia and Ram. Audi, Scion and Smart also made significant strides among consumers. Each of these brands reduced customer avoidance by four or five percentage points from last year.

Wise said people who have never had firsthand experience with Toyota are more likely to have a poor perception of the company, while people who have owned or own a Toyota are likely to continue considering the automaker.

In an odd twist, only 16 percent of buyers said they avoided Toyota because they “didn't want a foreign/import vehicle,” a reduction of 16 points from 2009, when 32 percent of the buyers avoided Toyota for that reason.

Perceptions slow to change

Wise said one-fifth of customers surveyed avoided a vehicle because of reliability concerns, and these perceptions are slow to change.

“It can take three to five years to change perception and this is after brands have improved in their actual reliability,” said Wise.

The brands that have higher perceived reliability are doing a few things well. They are improving the reliability of their vehicles, using word-of-mouth references and hitting the right notes with their marketing messages, the researcher said.

Exterior styling is the most frequently cited reason for avoiding a model -- 35 percent of new-vehicle owners said it was important to them. The next most important reasons are the cost of the model (23 percent), doubts about reliability (20 percent), dislike of the interior styling (19 percent) and a unfavorable perception of a manufacturer's reputation (16 percent). Some brands produced scores above 100 percent because respondents were allowed to cite more than one factor.

Maintenance costs

For shoppers looking at premium models, concerns over maintenance costs was also an important factor, even though many of these brands come with free maintenance as part of the purchase price.

Some redesigned car models that came out in the past year were much more successful compared to the models they replaced. They include the Cadillac SRX, the Ford Taurus and the Kia Sorento, the study found. They also outshine other vehicles in their respective segments.

Wise said this indicates certain automakers have been successful in changing customer perceptions.

“While most redesigned models have higher consideration than the previous-generation models, some models are far surpassing their predecessors, and in the process, are attracting many additional customers to the brand,” she said.

J.D. Power and Associates surveyed 25,000 owners who registered a new vehicle in May 2010. The firm conducted the survey between August and October. This is the eighth consecutive year the Avoider study has been conducted.

Friday, December 10, 2010

Honda Tops in Customer Loyalty - mKia Coming on Strong

Ford, Honda tops in U.S. customer retention; Kia rising fast



Brand loyalty survey finds that 'fun' is becoming more important

Laurén Abdel-Razzaq

Automotive News
December 9, 2010 - 3:42 pm EST

Ford and Honda have vaulted past Mercedes-Benz to tie for the highest customer retention rate among automotive brands in the United States this year, according to a new study.

The two mass-market brands retained 62 percent of buyers this year, J.D. Power and Associates said in its annual Customer Retention Study released today.

Ford rose five spots from 56 percent in 2009 while Honda increased one spot from 64 percent last year. Mercedes fell five spots, from 66 percent in 2009 to 59 percent in 2010, J.D. Power said.

The firm said Ford's higher retention rate was driven mostly by the Edge, F-Series and Fusion models. Honda's retention was driven by the Accord, CR-V and Pilot, the firm said.

“Ford, specifically, (is) producing products that have vehicle appeal, that have good styling and are fun to drive,” said Raffi Festekjian, director of automotive product research at J.D. Power and Associates. “For Honda, it's still more about resale value.”

Kia Motors had the largest increase in brand loyalty from last year, jumping by 21 percentage points to a 58 percent retention rate.

Overall, the average customer retention rate for the industry remained at 48 percent, even though some brands shifted in the rankings. Of the 32 brands ranked by the study, 16 improved their retention rates from last year, 14 declined and four did not change.

Fun to drive

A growing number of new-vehicle buyers consider a fun driving experience when it comes to being loyal to a certain brand, J.D. Power said.

According to the study, the desire for a fun driving experience as a reason for brand loyalty has increased in importance by 8 percentage points -- to 55 percent of respondents. In contrast, sticking with one automaker because of resale value has become less important, decreasing 11 percentage points to 45 percent.

“Last year we saw that resale value was important, consumers were a little bit more tight with their money, so that led to people staying with their brand” Festekjiansaid.. “Now we're seeing a shift in people who are interested in going back to some of the fundamentals of styling.”

Power said the top reason for remaining loyal to a brand this year was “seating arrangements,” chosen by 70 percent of the respondents -- unchanged from last year. Other top reasons were look/style, 65 percent; safety, 64 percent; deal incentive, 59 percent; and quality, 59 percent. Those results changed little from last year.

J.D. Power and Associates looked at more than 123,600 responses from new-vehicle buyers and lessees, of which more than 81,000 were replacing a vehicle they had purchased new. Power conducted the study between February and May and again between August and October. This is the eighth year J.D. Power and Associates has conducted this study.

Conquest rates

Besides customer retention, the study also looked at the rate at which auto brands capture customers from their competitors -- what J.D. Power and Associates calls “conquesting.”

Domestic brands have made strides during the past two years in grabbing customers from import brands. This year, 14 percent of domestic brand buyers previously owned an import, compared with 10 percent in 2008.

Despite the fun-to-drive factor, look and styling remain the top reasons consumers will stick with one brand, Festekjian said.

Although it is difficult to predict future trends, Festekjian said, right now customers are looking at a combination of factors in determining whether to stick with one auto brand. Brands that have good quality, good appeal and can bring people into showrooms are still important, he said.

“Consumers are shifting now to where they want it all,” Festekjian said. “They want the vehicles to be fun to drive and maybe aren't thinking of it so much as a vehicle to get me from point A to point B.”

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