KIA Sales in the U.S. Market Has Increased

Kia, the South Korean car manufacturer, is targeting to reach the U.S. market share of around four percent this year. This target is the highest ever set.

Kia Motors America saw sales of cars has increased over the last two years. Over the past 24 months, sales have reached record levels. Michael Sprague, Executive Vice President, Marketing and Communications at Kia Motors, said the target is higher than the previous year by 3.8 percent.

Kia plans to introduce seven new car models in 2013. The Forte model will be redesigned and Sorento types that have been updated will appear in the event Los Angeles Auto Show. "It's going to be a very busy event," said Tom Loveless, Executive Vice President Sales of Kia Motors America.

Jim Hall, an analyst at 2953 Analytics LLC, said the new products that have been updated will help Kia improve existing perceptions about the brand. "Kia need to determine why Kia is a Kia and Hyundai is not," said Hall.

Hall called compact cars Kia Soul named to compete in a slim car segment with Scion xB and Nissan Cube. Kia Soul launches every year since its debut in 2009. This year Kia Soul will launch the latest type and exploit its popularity to sales growth.

Soul sales in 2009 reached 31,621 units. This year, targeted sales will grow to 112 thousand units. This compact car not only attract young consumers, but also consumers of all backgrounds and ages.

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Ford Fiesta has been Preparing "Cheap" Cars

Ford Motor Company (FMC) announced again preparing a new model was developed from the Fiesta platform, filling the segment beneath with cheaper price. As stated by the Chief Executive Officer of FMC, Alan Mulally, that reported by Autonews (09/09/2012) that the vehicle was not wearing a new trademark for a low cost car such as made ​​by Renault with Dacia.

"We continue to travel the world looking for the opportunity to offer a car with cheaper price than the Fiesta," said Mulally. The new car is called the model "value B" eventually going to have the same dimensions with the Fiesta, but have a more competitive production costs. Unfortunately Mulally still has not mentioned this low cost car later would be in production and sold where prime.

In Europe, Ford Ka compact car had taken off that is the product of collaboration with Fiat in Poland. The difference, Ka produced using the same platform with the Fiat 500. In addition, the smaller dimensions Ka deemed inappropriate as a global product. Because not all markets fond cars that are too compact.

"We have no definite plans at this time (for a global model of Sub-B), but to be competitive in every market it's very important," said Mulally. One way of reducing the cost of production on the car is to use the global design and relying on supplies of components of the whole world.

World Trends

Start saturated markets in developed countries make a lot of automotive principals continue to spread its wings in new markets. To be able to reach the market in a third country, would require the right product at a more affordable price.

Renault has begun to create independent brand to work on the low cost car segment in 2004 with the launch sedan Logan. Furthermore, other models followed, including hatchback, wagon, minivan to a small SUV. French car manufacturer that targets this year to sell 1 million units of Renault and Dacia low cost cars in the global market of 813,000 units in 2011. By working on this new segment, according to analysts, Renault claimed bagging bigger profits up 9 percent.

Still from France, PSA Peugeot-Citroen plans to introduce low cost car in the event the Paris Motor Show later this month (September 2012). Not to forget, Nissan has announced revive the Datsun brand is prepared to work on a new country markets such as India, Indonesia and Russia.

Back again to the Ford plan, relating to LOW COST CAR GREEN (LCGC) who was proclaimed the Government of Indonesia. Would this be an early indication of Ford's investment commitments in Indonesia to build a low cost car factory?

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