KIA on the way out


#1

USA Today Business Section. Parent corporation Hyundai expresses its desire today to shut down the KIA brand. They say they are taking the action after seeing what happens to a healthy brand that branches out to far.


#2

Doesn’t make sense. It’d be like GM deciding their Chevy division was doing too well and might detract from GMC.


#3

KIA was dragging the healthy parent, Hyundai down, just like GM having too many divisions was part of their downfall, makes perfect sense.


#4

When you consider how much it cost to develop, style, and market the Kia Soul and a few other new-design KIA vehicles, if Hyundai really does pull the plug on their KIA division, this will make Ford’s loss on the Edsel venture look like chump change.


#5

Hyundai is making an shrewd business move in my opinion. They may be around a long time if they “pull the trigger” on this decision.


#6

It makes good sense. Hyundai’s quality has really come up but Kia’s quality was/has always been in the toilet. Hyundai is the parent company so they can take the blame but that’s the way it is.

I have heard that plenty of banks will not loan money on used Kia’s since they are rolling POC’s.


#7

I don’t see that story online, though I did see a Wall St 24/7 article claiming Kia was one of 10 brands you would likely see disappear in 2011.

Does Hyundai have the power to do this, though? They currently own about 40% of Kia, according to Hoovers, so they’re probably the largest shareholder but not a majority holder…


#8

I saw that article. Kia has a lot of company. It’ll be a lengthy procession to the corporate graveyard this coming year.


#9

What day did it appear? I didn’t see it this last week (Tue-Fri). Kia just opened a plant in Georgia in 2009. I did a web search and the only article I found was the WSJ opinion piece about brand names that may disappear in 2011, including Kia.


#10

Friday business section,mb saw it.


#11

Yeah, makes sense, no real separation between the two brands. I would bet big that the Soul and maybe some others will become Hyundais. I wonder if they’ll then come out with a premium brand, like Toyota/Lexus and Ford/Lincoln.