Automotive News Canada - October 2017 - 12

12

* OCTOBER 2017

Kia's top-10 rise
Strategy involves
luring customers
with value and
then closing the
deal with design
and quality
By DAVID MILLER

TORONTO CORRESPONDENT

KIA IN CANADA HAS COME
a long way in a relatively
short time, breaking into the
top 10 in sales.
Kia Motors Canada, now
just 18 years old, was first met
with reluctance and indifference, instantly being typecast as the budget-conscious
option to used cars.
But all that has changed.
In Canada, according to
DesRosiers Automotive
Consultants, Kia
ranked 10th in

September sales, with 7,819
units being driven off the lot,
compared to 6,548 a year ago.
That's a 19.4-per-cent hike.
Kia's surge has been aided
by topping J.D. Power's Initial
Quality Study in the United
States for back-to-back years;
the only non-luxury brand to
receive the award since 1990.
"Kia has moved from being
last in initial quality in the
1990s to being the top-ranked
brand," said Dave Sargent,
vice-president, global automotive at J.D. Power. "This
is a remarkable turnaround
unmatched in the 31 years
that we have been conducting
the study."
Ted Lancaster, COO at Kia
Canada, takes pride in those
quality accolades as they back
up the brand's efforts.

Ted Lancaster, COO of
Kia Canada, says the
brand is aiming to sell
100,000 units a year by
2020. ( P H O T O : K I A )

Kia has moved from being
last in initial quality in the
1990s to being the
top-ranked brand.
DAVE SARGENT

Vice-president,
global automotive, J.D. Power
But sustaining its value
proposition, especially for
entry-level vehicles, remains a
key pillar to success, he said.
"Kia is now being recognized for the quality of our
products, and if we combine
that with our value proposition, we're sending a very
strong message."

STANDARD EQUIPMENT

Kia gets buyers into the store based on value - 2018 Rio5
pictured - and then wows them with design and ride quality,
says a London, Ont., Kia dealer. ( P H O T O : K I A )

Value is shown off best in
its latest offering, the entry-level 2018 Rio. Starting from the
base LX trim, buyers receive
heated front seats, heated leather-wrapped steering wheel,
heated mirrors and a rearview
camera for a starting price of
$16,194 for the sedan or $16,594
for the five-door hatch, including shipping.
The standard content gives
Kia an advantage in the market and that has already
become evident at the deal-

Let Us Show You How We:

Maximize Your Value!
Minimize Your Time and Effort!
Maintain Discretion and Professionalism
Coordinate Legal & Accounting Advisors

ership level, Lancaster said.
By comparison, he said, the
Honda Fit and Nissan Versa
offer heated front seats in a
pricier second-tier trim, and
there's no available heated
steering wheel.
"The value proposition
in the new Rio is a huge
step," said Ryan Jones, dealer principal of London Kia in
London, Ont.
"Value is what initially drives people to the showroom, and we have to continue to be pioneers, leading the
way in content features and
then wowing them through
ride quality and design."
Part of the strategy
involves just getting out there,
says Lancaster.
"For certain vehicles, we
take a little less margin, but
it's all about getting as much
out in the marketplace while
providing the best possible
value for the customer."

'WHOPPER WEDNESDAYS'
Lancaster jokes about
an internal discussion that
equates this philosophy with
Burger King's previous promotion known as Whopper
Wednesdays. Through a similar approach, Kia is able to
build its client base with an
aim toward long-term family
purchases and services.
"Profit doesn't only have
to be captured in price, it

can be achieved off the retention of clients and the service
shop, and that all comes from
increased volume."
Eric Levitt and Katie
Naughton, dealer principals of 401 Dixie Kia in
Mississauga, Ont., are
believers. Their dealership will expand early next
year into a modernized Red
Cube dealership. For Levitt
and Naughton, expansion
involves breaking ground in
a better location inside the
401 Dixie auto mall, as well
as full inside and outside
Red Cube requirements that
include a striking red boxy
front composed primarily of
glass, along with specific furniture. Red Cube is Kia's new
design model that all dealers
will eventually need to adopt.
"We're investing a lot of
money because we believe
strongly in the brand and
it's time for the facilities to
be indicative of the products
we're selling," said Levitt.
The perception of the
brand might not be growing
at the same pace of the product, but Lancaster believes
the J.D.-Power-quality honours, the addition of sporty
cars such as the Stinger GT,
and the continual upgrading
of standard equipment will
drive Kia to its Canadian goal
of 100,000 sales a year by 2020.
- ANC

www.LACLtd.ca

Professional, independent, financial advice to
Canadian dealerships for 25+ years
Michael Lewicki, CPA, CA
mlewicki@LACLtd.ca
(647) 223Ͳ3855

The coming 2018 Stinger GT will add a sporty option to the
Kia brand. ( P H O T O : K I A


http://www.LACLtd.ca

Table of Contents for the Digital Edition of Automotive News Canada - October 2017

Automotive News Canada - October 2017 - Intro
Automotive News Canada - October 2017 - 1
Automotive News Canada - October 2017 - 2
Automotive News Canada - October 2017 - 3
Automotive News Canada - October 2017 - 4
Automotive News Canada - October 2017 - 5
Automotive News Canada - October 2017 - 6
Automotive News Canada - October 2017 - 7
Automotive News Canada - October 2017 - 8
Automotive News Canada - October 2017 - 9
Automotive News Canada - October 2017 - 10
Automotive News Canada - October 2017 - 11
Automotive News Canada - October 2017 - 12
Automotive News Canada - October 2017 - 13
Automotive News Canada - October 2017 - 14
Automotive News Canada - October 2017 - 15
Automotive News Canada - October 2017 - 16
Automotive News Canada - October 2017 - 17
Automotive News Canada - October 2017 - 18
Automotive News Canada - October 2017 - 19
Automotive News Canada - October 2017 - 20
Automotive News Canada - October 2017 - 21
Automotive News Canada - October 2017 - 22
Automotive News Canada - October 2017 - 23
Automotive News Canada - October 2017 - 24
Automotive News Canada - October 2017 - 25
Automotive News Canada - October 2017 - 26
Automotive News Canada - October 2017 - 27
Automotive News Canada - October 2017 - 28
Automotive News Canada - October 2017 - 29
Automotive News Canada - October 2017 - 30
Automotive News Canada - October 2017 - 31
Automotive News Canada - October 2017 - 32
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