Kia’s Brand Value:
Kia, who was once known as the company offering low-budget, lackluster vehicles for consumers with credit challenges, has slowly shed that image over the past two years. With the sales success of the cool looking Soul, the Forte (sedan), the Forte Koup (coupe) and the American-built seven-passenger crossover, the Sorrento , the automaker has gained favor with the public.
Furthermore, it doesn’t hurt that Kia is now building reliable vehicles that rival their Japanese counterparts: Toyota and Honda. And it doesn’t hurt that they offer one of the best powertrain warranties in the industry. This along with their value-packed pricing strategy has also immensely caused the brand’s residual values to increase, according to the Automotive Leasing Guide.
In fact, the recently redesigned 2011 Sportage, which was unveiled in San Francisco , last week, was awarded with one of the highest three-year residual values in the industry. According to the Automotive Leasing Guide, Kia’s latest compact crossover is expected to have a residual value between 60 to 66 percent. Thus, this means that the vehicle is expected to be worth at least 60 percent of the MSRP in three years. This is unheard of for a Kia and in fact most vehicles on the market today.
The Audi Influence:
Also the exterior design of the new Sportage (along with the soon to be released redesigned Optima midsize sedan) is heavily influenced by the former Audi car designer who recently jumped ship to oversee the designs at Kia. Yes, even the day-time running lights in the stylish compact crossover has Audi’s signature stamp, which has been reserved until now for the German automaker. Who could have imagined Kia would be taking styling cues from the upscale Audi luxury brand?
The Ford Influence:
The redesigned Sportage, which is currently arriving at showrooms, will be available in three trim packages: Base, LX and EX (a SX version with a turbo is coming soon). In addition to the typical features one would expect in a crossover, for the first time, the vehicle will also be available in an all-wheel drive configuration. And this will be Kia’s first vehicle to be equipped with voice-activated, hands free text messaging system similar to Ford’s SYNC system, known as the UVO system (Your Voice).
Unlike Ford’s system, Kia’s UVO will contain a standard music juke box and a rear-view camera. This shouldn’t be a shocked to auto industry insiders that Kia will offer a system similar to Ford’s, since they lured away one of Ford’s lead engineers for the SYNC system.
Well-Equipped Options:
Moreover, depending on how your Sportage is optioned, it could be equipped with a high-quality satellite radio, push-button keyless starter, a leather wrapped steering wheel and shift knob, a telescopic steering wheel, illuminated vanity mirrors, automatic folding rear seats, a dual-zone temperature control air conditioner, an air-conditioned glove-box, a power driver’s seat with lumbar support, heated front seats, a ventilated driver’s seat, a back-up audible alert system, and a dual panoramic sunroof.
In addition to the upscale exterior design, the baby crossover has moved upscale with the options, too. It’s no wonder why this vehicle has an extremely high projected residual value.
The Sportage will also be equipped with two new engines: a 2.4-liter, 4-cylinder engine capable of producing 176 horses or an all-new 2.0-liter turbo, 4-cylinder engine capable of whipping out 270 horses, which will not be available in the initial batch of vehicles. Kia will no longer offer a 6-cylinder in this crossover. With the type of power and torque put out by the turbo, who needs a 6-cylinder?
And for those concerned about the shoes, the Sportage will be available with 16-inch, 17-inch or 18-inch tires.
Pricing Strategy:
Pricing for the five-passenger redesigned Kia will start right under $19,000 and can run up to $30,000, depending on options. Be careful, the high-end pricing of a fully-equipped Sportage EX could overlap with Kia’s seven-passenger Sorrento .
Overall Verdict:
Kia is expecting that this five-passenger crossover could attract more young males to the brand and the compact crossover segment due to its aggressive exterior styling. This vehicle doesn’t have the same sexy effect that we’ve found in the styling of most of today’s crossovers…. so this could be a turn off to some female buyers.
Overall we’ve been extremely impressed as of late with the vehicles coming from Hyundai’s sister brand, Kia. During our test drive of the high-end, fully loaded Sportage EX we reviewed on the coast of Hwy 1 and the rolling hills of San Francisco , we found the ride and handling of the vehicle to be more than capable of adapting to Bay area twisty, winding roads.
Moreover, the vehicle front seats are both comfortable and extremely supportive for long road trips. We look forward to a longer test drive once the vehicle arrives in Georgia . We wish Kia would just add a few more dollars to the interior to lessen some of the hard plastic, surrounding the instrument panel. Other than that quirk, Kia has another winner on its hands.
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