South Korean automakers posts sales growth in the USA automarket

Where the big Detroit three are grappling with downward sales Japanese and South Korean automakers are registering exceptional growth in the USA auto market. The rise of fuel-efficient vehicles has kept the auto sales from falling sharply. The combined sales of South Korean automakers in June registered a 9.2% annual rise. The strong demand of South Korean brands is making up for lower sales in their domestic market. Analysts are expecting that the new trend of fuel efficient cars will continue in the second half of 2008.

In June, the five South Korean automakers: Hyundai Motor Co.(SEO: 005387), Kia Motors Corporation (SEO: 000270), GM Daewoo Auto & Technology, Ssangyong Motor (SEO:003620) and Renault Samsung Motors sold a total of 490,342 units. In 2007, their combined sales in the USA was 449,043. CNN reports:

Domestic sales fell 7.2% on year to 97,591 units from 105,169 units, while exports rose 14% to 392,751 units from 343,874 units.

Increased overseas capacity at Hyundai and Kia, which together form the world's fifth-largest car manufacturer by sales, will help boost overall sales of South Korean carmakers in the second half, said Hyundai Securities analyst Cho Soo-Hong.

In 2007, the Hyundai-Kia Automotive Group emerged as the world's No. 5 carmaker (up from No. 6 in 2006) with global sales of 3,961,629 units, according to Automotive News' 2008 Global Market Data Book issued Monday.

Jeff Lee, an analyst at Hana Daetoo Securities Co. Ltd. estimated that Hyundai is going to export about 50,000 units in 2008 in the USA. Last year, they imported 49,000 units accounting 4% of the total auto sales in the USA. Overall, in these six months, the five South Korean car makers posted an 8.7% increase in annual sales from 2.61 million a year ago, to 2.83 million.

Related article:
CNN

Kia Spectra 2008 Review

Kia is one of the oldest motor companies of South Korea. It has been producing cars since 1944. Today, Kia Motors Corporation has factories in 13 countries and sells more than 1.1 million vehicles around the world. Kia Motors is renowned for its high quality customer service and reliable cars. Kia Spectra 2008 is the latest addition in the Spectra family.

The first produced Kia Spectra hatchback and sedan were not very successful. The cars looked well and had good controlling but they were poorly constructed. Today, things have become different. The spectra model gives the best value. Edumunds.com reports:

The current Kia Spectra debuted midway through the 2004 model year and represents the nameplate's second generation. The five-door Spectra5 hatchback was introduced for 2005. Like most compact cars, the Spectra seats four comfortably, five in a pinch. Both body styles feature a 138-horsepower, 2.0-liter four-cylinder engine that provides spirited performance around town but feels a little winded during highway passing maneuvers. A standard five-speed manual transmission routes power to the front wheels, and a four-speed automatic is optional.

Currently, the sedan is offered in two trim levels -- Spectra EX and Spectra SX (previously, there was an LX model as well). The Spectra5 hatchback is available in a single SX trim. Although it occupies the bottom rung of the ladder, the EX sedan is well appointed with supportive seats, high-quality materials and amenities like air-conditioning, a six-speaker CD stereo, full power accessories and keyless entry. The SX model adds upgraded interior and exterior trim, along with firmer suspension tuning and bigger wheels and tires to impart a sportier attitude.

The new Kia Spectra 2008 comes with 4-speaker AM/FM/ CD stereo system with equalizer, portable MP3 player audio inputs, dual 12V power outlets, and digital clock. The car connection reports:

A front-driver with unibody construction, the Spectra uses MacPherson struts up front and a multi-link rear suspension to deliver a balanced ride and decent handling. The SX model comes with a sport-tuned suspension and a brace across the front strut towers for better rigidity and thus, better handling.

Standard equipment on the Spectra includes dual front, side, and curtain airbags. Anti-lock brakes are an option on the SX.

Other gear includes a tilt steering column; a 60/40 split-folding rear seat; a rear defroster; and dual 12-volt power outlets in the center console. An AM/FM/CD stereo with an auxiliary audio input jack is also standard.

The EX and SX models get standard power windows and door locks; keyless entry; air conditioning; and floor mats.

The Spectra5 SX model also adds a leather-wrapped steering wheel and gearshift knob, metal sport pedals and cruise control. An AM/FM/MP3 stereo with a six-disc in-dash CD changer and a power sunroof also are SX-only options.

Dimension:

• Wheelbase: 102.8’’
• Fuel efficiency: 32 mpg
• Length: 177.2 in.
• Width : 68.3 in.
• Height: 57.9 in.
• Cargo volume: 12.2 cu. ft.

Kia Spectra 2008 is a great car in terms of convenient and comfort. Times &Transcript reports:

Comfort and convenience continue to play a major role in Kia’s overall commitment to complete customer satisfaction, and the Spectra’s seating accomplishes that with maximum appeal. With 60:40 split-folding rear seats, 6-way adjustable driver’s seat with lumbar support (full cloth seat trim), and front and rear height adjustable headrests, settle in for a soothing and unforgettable ride.

And talk about a spacious interior! The 2008 Spectra offers plenty of head, shoulder, leg and hip room, with an amazing passenger volume of 97 cubic feet. As for cargo room, you don’t have to leave anything at home with 12.2 cubic feet to store it in.

Kia Spectra 2008 is available in five gorgeous colors: deep ocean blue with grey interior; black orchid with grey interior; spicy red with tan interior; bright silver with grey interior and ice blue with grey interior.

On the outside, Kia Spectra 2008 comes with 15” steel wheels with full wheel covers; body color rear garnish, bumpers, side mirrors and door handles; front and rear mud guards; tinted windows, and available tilt and slide sunroof. Cars Direct says:

The Kia Spectra makes a styling statement, not a busy, fussy one, but one that's clean, with sculpted character lines and interesting surface planes that set the car apart from the look-alike, safely conservative econo-box class. The EX model's fog lights are round, adding perceived height to the front end. Headlight housings taper upward at the outer edges, drawing the eye more naturally into the hood's increased slope. The sporty EX and Spectra5 are distinguished by a more assertive front end highlighted by a black mesh grille, blacked-out headlight surrounds and a deeper front spoiler. A sharp groove etched into the side accentuates Spectra's wedge shape. Embedding the door handles in the groove reduces clutter. Clearly defined fender blisters add sportiness to the wheel openings. One stylistic hiccup is the rear fender blister, which isn't as well proportioned to the surrounding body panel as is the front blister and leaves the rear wheel looking undersized. Badging is minimal, confined to a Kia logo centered in the grille and above the rear license plate.

Edmunds.com further says:

Interior Design and Special Features:
The 2008 Kia Spectra offers a simple cabin layout with easy-to-use (and reach) controls and good build and materials quality. The seats are comfortable and the storage cubbies and cupholders are generous in size. The Spectra5 boasts an 18.3-cubic-foot cargo area, whereas the sedan's trunk only offers 12.2 cubic feet of space.

Driving Impressions:
The Spectra provides a very pleasant drive overall. The four-cylinder engine has enough muscle for smart response right off the line for getting around town. Unfortunately, engine noise is a bit intrusive at higher revs. The manual gearbox is adequate, but the four-speed automatic does not provide the quickest of gearchanges. The SX versions distinguish themselves with tighter handling and stiffer suspensions while still providing an overall soft ride quality.

The new Kia Spectra 2008 comes with high safety standards. The car has steel unibody construction, dual front airbags. It has 3-point height adjustable seatbelts with pretensioners. Kia Spectra 2008 comes with 4-wheel disc brakes and 4-wheel Anti-Lock Braking System (ABS). Other safety features of Kia Spectra includes: anti-theft ignition immobilizer, auto-off headlights, rear window defroster, variable intermittent windshield wipers, emergency trunk release handle.

Another important aspect of Kia Spectra 2008 is that it is childfriendly. It comes with lower anchors and tethers for children (LATCH) and rear child safety door locks.

Last but not the least, Kia offers five year/60,000 mile basic warranty and powertrain warranty for the first 10 years or 10,000 miles.

Related articles:

Times & Transcript

Edmunds (1)

Edmunds (2)

U.S.News

Kia.com

The Car Connection

Cars Direct

Kia

Kiamotors

hyundaikia

kiaspectra

spectra

Bill Gates in South Korea

On his Asia tour, last Tuesday, Bill Gates, Chairman, Microsoft Corporation (NASDAQ:MSFT), met with the President of South Korea, Lee Myung-bak. Mr.Gates forecasted a vast shift in Internet technology in the next ten years. In a press conference before the meeting with the President, Mr. Gates told the reporters that the people around the world are moving toward the second decade of the digital age. The internet had been operating for ten years and the second ten years will be different. After 2001, this is Bill Gates’ first tour in South Korea. International Herald Tribune reports:

The Blue House said in a statement that Microsoft, the South Korean government and South Korean companies will invest a total of US$313 million (€202 million) in information technology for vehicles, games and education.

Earlier, Microsoft Corp. and automakers Hyundai Motor Inc. and Kia Motors Corp. announced a deal whereby the South Korean companies will use Microsoft's in-car software, which allows people to control personal music players and telephones with voice commands.

The companies also said they planned to set up an automobile IT innovation center. Hyundai and its affiliate Kia together form the world's sixth-largest automotive group.

South Korea’s President Lee Myung-bak mentioned Bill Gates as member to his Global advisory committee. The projects declared during this visit will have major impact on South Korea’s economy. Microsoft also announced its plan to invest $280 million to build a research and development facility in Beijing and double the R&D staff to 3000 within three to five years.

Related articles:

International Herald Tribune

AFP

microsoft

hyundai

Hyundai Motor Company :Selling new car in old price

In Canada, Hyundai Motor Company (SEO: 005380) just took the fight a step further by dropping its product price to four figures. Currently, Hyundai is selling its Accent model at $9995. This used to be the price of cars 13 years ago. However, Hyundai is not alone in this. Kia Motors Corporation (SEO: 000270), another major competitor of Hyundai, is also offering its Rio model cars below $10,000. The result is, some buyers get so excited that they even do not bother to test drive the car. Driving.Ca reports:

But it also highlights just how much Canadian car prices in general have escaped inflationary pressure. If it had followed the same 29 per cent cost increase since 1995 that other goods in Statistics Canada's consumer price index had, the Accent would retail for $12,890 today. Pricing the car under $10, 000 gives Hyundai an advantage in appealing to budget-conscious buyers who might have considered purchasing a used vehicle, said Vic Singh, chief economist at the Canadian Auto Dealers Association.

To meet the growing demands of the buyers, Hyundai’s Korean factory has increased its output. Canadian car buyers are becoming more and more price conscious. In such a situation, Hyundai has agreed to sale cars at lower prices and the dealers also agreed to accept lower profit margin. According to John Vernile, vice-president of sales and marketing, Hyundai Auto Canada Corporation, as the buyers have become price conscious, it would be better to give them a price that would motivate them very much.

Related article:

Driving.Ca