For a car company with such humble origins, Kia's rise to become one of the world's most popular manufacturers has been a remarkable one. They've had to face a great deal of adversity along the way, but currently, they stand as a strong example of how to make affordable, appealing, and reliable cars.
At one time, the brand was a laughing stock, with crippling debts and a product that was no longer fit for purpose. But the 21st century has been a period of tremendous rebuilding for the Korean giant, culminating in their current status as an automotive powerhouse.
But how exactly did they manage it? What follows, is the story of Kia's profound transformation - an excellent blueprint for any car company that currently finds itself in financial strife.
Refocused Efforts On The U.S Market
Despite historically making cars more suited for Asia and Europe, Kia models are now beginning to sell well in the United States. According to Car Buying Strategies, there are now over 1 million Kias on U.S roads, a significant number for a manufacturer that is still very much finding its feet in the region. This number is likely to increase over the coming years, with the price of Kias remaining a big selling point. Today, its a truly international brand, but is also one that knows how to tailor certain vehicles for certain markets.
Attention To Detail, Inside And Out
For much of Kia's existence, the cars they manufactured lacked a uniquely personal touch. Panels lifted straight from Ford or Hyundai models were thrown in, without a thought to how they would fit. Those days are seemingly gone, as the company's current flagships are littered with personalized touches that make them original vehicles in their own right. This is a trend that's set to continue, with Caranddrivers' latest review of the 2021 Seltos model praising the car for having "well-chosen" materials throughout the cabin, "refined enough to seem right at home in the showroom next to the brand's excellent Telluride SUV".
Increased Performance Without Increasing Prices
Part of their appeal certainly derives from the fact that Kia models remain relatively cheap in a competitive market. As Kia has gradually risen as a company, their models have remained reasonably priced, while also managing to be remarkably reliable – a balance they historically struggled to achieve. Today, they stand out in a crowded field for being both affordable and reliable – a deadly combination.
Became A Big Player In The SUV Market
Like virtually every successful car company, Kia tried their hand at producing a range of SUVs at the turn of the 21st century. Decent off-roaders gave way to durable family SUVs, such as the Sportage. Sales of the Sportage have been consistently rising in the U.S, with a more than credible 89,000 sold in 2019 alone. SUV's are another crucial bow to Kia's already considerable armory - vital diversity for a company with international reach.
Commercial Partnerships
Key to attaining credibility for the brand has been a number of successful ad campaigns and partnerships. Brand awareness of the company is now huge, even if its in the headlines for all the wrong reasons. As the old saying goes, "Any publicity is good publicity", and with the manufacturer improving with age, previous missteps will soon be forgotten if the product is an obviously good one. Commercial partnerships with Raphael Nadal and Robert De Niro have both helped to established credibility on the international stage.
Provided A 10-year Warranty For All Vehicles
In a significant show of confidence from the company, nearly all new Kia's now come with a 10-year warranty. This is again a far cry from their origins, where reliability was less than stellar. Not only does it boost the companies reputation, but it also calms consumers' concerns, and surely helps global sales. More than anything, its important in terms of optics, as it firmly establishes Kia as a reputable modern car company.
Significantly Improved Reliability Record
As has already been touched on, the rise of Kia as a brand is partially down to the emphasis they now place on reliability. New cars, fitted with the 10-year warranty, are simply expected to run and run. In America, where reliability is a key metric for most buyers, they have unsurprisingly seen an upturn in fortunes. They're a long way from becoming one of the most popular brands stateside, but if they continue on the current trajectory, they may not be a million miles away in the future.
Hyundai's And Ford's Involvement
Finally, we come to the elephant in the room. Yes, Ford and Hyundai, at different stages of the companies life span, both helped Kia to stay afloat. In the 1980s, Ford was integral in helping establish the brand in America, providing chassis and parts in order to get them off the ground. In 1998, Hyundai would buy a 51% share of the company, money which helped keep the ailing company afloat following the Asian financial crisis. Without the investment and help from the two automotive giants, its very possible that Kia may not even exist - certainly not in its current form anyhow.
Sources: carsalesbase.com, cars.usanews.com, Kia.com, caranddriver.com, autowise.com