thinkpool

by Kate McLeod

Just as the Japanese did so many years ago, the Koreans jumped into the American car market by selling small cars at low prices.

Customers got what they paid for. A contributor to The People's History Web site wrote "My worst car was a Kia Sportage 4x4 I bought in 1997." She went on: the check engine light was always on, air conditioning stopped working, driver seatbelt unfastened, clutch blew at 40k, and the engine needed replacing resulting in 26 trips to the dealer for repairs over a two-year period.  She couldn't give the car away. Kias were all about problems and low residual values.

Pretty serious stuff. But that was yesterday. Today Kia talks about creating passion for its vehicles amongst car lovers. Passion - isn't that for Porsches and BMWs and Corvettes?  Not Sportages, Rios, and Rondos? Well, that isn't deterring the guys at Kia diligently digging their way out of the early disasters they had nothing to do with. 

Kias are showing up on important lists as editor's choice, most wanted and best buy, which means the selling points are more than price. "And we're not walking away from that value proposition," says Ian Beavis, marketing director. "We're going to layer on top if it. The best example of a company that has successfully added style and passion to their brand while holding onto value is Target."

Kias has consistently received the top five-star crash ratings from the National Highway Traffic and Safety Association (NHTSA). They offer the most comprehensive warranty in the business at 100,000 miles/ten years - like sister Hyundai - and have shamed others into following suit.

They are recruiting like crazy from brands that are known for passion for cars, most notably Len Hunt, formerly Executive VP of VW America and now Executive Vice President and Chief Operating Officer at Kia. Peter Schreyer who was interiors meister at Audi with Hunt just arrived with his portfolio. Ian Beavis, Vice President of Marketing for KMA, has a long history including at stint at Mitsubishi - another example. 

"We're recruiting people from the passion brands," says Hunt. Do you think that any of us would have come to Kia if there weren't something going on? We're raving car guys. We want to spread the magic dust and rocket it. We're guys who want to take the product somewhere and we came to Kia because we're small and we can do that."

Still every car company in the world lays claim to passion. The proof will be in the doing.

"There's no reason at all why you can't cultivate groups of enthusiasts," says Hunt. Remember I used to run Volkswagen. Create the community of people and it happens itself. There are people on Web sites who share enthusiasm for Kia because it is fresh, new, different, not the car my Dad drives, not a Toyota ."

Of course, that community at VW started with a unique car - the Bug or Beetle - that stirred our love.

Enthusiasm is contagious and the Web has given companies who are good at taking advantage of it a new way to stir up that enthusiasm. "Because we're small," says Beavis, we can do "Web chats. We love them. It's dead easy and people can post on your sites and when they see who is answering them back (meaning Hunt or Beavis) they love the fact that they are actually talking to you. It personalizes the company and auto companies are not very personalized."

When I suggested that the Koreans seemed more interested in selling a lot of cars and making money, I got an earful. "We are building one of the world's most prestigious design centers and recruiting some of the leading edge designers. Japan is importing Korean designers because they take more risks than Japanese designers. Now all engines at Kia are fired - drivetrain, interiors, and sheetmetal redesigns, ground-up work is happening.

"Who's going to associate passion with Kia right now," says Hunt. "I've touched passion. When you touch it, you know it," says Hunt, "like when you stand on the winning line at Laguna Seca with your owners. You know when it is unleashed." And yes, he says racing is part of the long-term plan for Kia. to generate passion.

"We have not overpromised on anything we have done with this brand," says Beavis. "I prefer to be measured by deeds. Look, in 2000 we were selling Sephias! The pace at which we are moving is incredible. We're doing in five years what it took others 20 years to do."

The Kia Rondo and at the Chicago show, the Rondo SX Concept, are the newest models to be shown by Kia. But, says Hunt, "look at the Soul, which we will preview next year. That's where the passion begins."

So, the passion is a promise, not here yet.

As we said, everybody talks passion.  Seeing will be believing.

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