Kia's new Sorento will get a big 'Made in U.S.A.' label
Lindsay Chappell
Automotive News
November 2, 2009 - 12:01 am ET
WEST POINT, Ga. -- Kia Motors America will use its new "Made in U.S.A" bragging rights to help drive sales of its redesigned Sorento next year. The compact SUV will begin rolling out of Kia's $1 billion assembly plant here in mid-November and go on sale in January against bigger competitors such as the Chevrolet Equinox, Ford Edge and Toyota RAV4. During the Thanksgiving weekend, the Korean automaker will launch an ad campaign in movie theaters around the country to tell consumers that it is building cars in this rural community about 80 miles southwest of Atlanta. Michael Sprague, Kia Motor America's vice president of marketing, anticipates the message will reach 70 million moviegoers.
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Gamble for share The local launch is the cornerstone of Kia's plan to more than double the Sorento's share of its segment in four years. The new factory -- Kia's first in North America -- will give dealers 300,000 units of annual U.S. plant capacity and eventually three U.S.-made models. Kia sold only 273,397 vehicles here last year. But it is one of only three brands that increased U.S. sales during the first nine months of 2009. "This is really a game changer," Sprague says of the California-designed Sorento, which Kia dealers will pitch with the biggest marketing campaign in the brand's history. The vehicle will contain a U.S.-made engine and transmission. "Our market research shows that U.S. consumers want to feel that they can trust a brand. And they tend to trust you when you manufacture locally," Sprague says. "For us, building in America carries a positive perception of quality. It communicates that we're investing in local jobs and the local community." Kia plans to touch on the vehicle's new U.S. plant all year in its advertising. Tom Loveless, Kia Motor America's vice president of sales, says a U.S. identity will be a boon to Kia sales. |
A 'wider net' "A 'Made in U.S.A.' label allows us to cast a little wider net for consumers giving consideration to Kia," Loveless says. "It helps us reach buyers who might not have put us on their list before." The plant is barely stirring yet. But in expectation of a year-end burst of consumer interest, Kia is asking manufacturing managers to produce several hundred pre-production models of the Sorento, a 2011 model, to get a jump on marketing. Each of Kia's 650 dealers will receive one of the vehicles as a showroom display. The factory will retain ownership of the vehicle, and dealers will not be allowed to sell it, as part of an agreement with the EPA. Under the EPA's rules, 2011 models cannot be distributed for sale until Jan. 1, 2010. "It's a sort of loan," Loveless says. "If the dealers want to buy it from us at a later date, they can." Sprague declined to put a dollar figure on the model's marketing budget. Prices have not been released, but Sprague says the vehicle will start at less than $20,000 and a fully loaded version could top $30,000. |
You can reach Lindsay Chappell at lchappell@crain.com.
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Workers at Kia's West Point, Ga., plant build pre-production 2011 Sorentos. A pre-production Sorento will be displayed in each Kia showroom. Work on production models starts in November. The vehicle goes on sale in January. |
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