Improving inventory to boost Kia

Kia dealers should expect sales gains this year, not only from the addition of freshened and redesigned models, but also on a better supply of crossovers after some inventory struggles.

That improved environment will build on a strong performance by the Korean brand during the pandemic last year, with sales falling just 4.8 percent and easily outperforming the overall market.

Kia retailers were told during their make meeting to expect improving inventories, said James Morrell, chairman of the Kia Dealer Advisory Council and co-owner of Destination Kia in Albany, N.Y.

"Kia plays to win, and they fully expect to keep growing," Morrell told Automotive News.

Retailers will have better supplies of the popular Telluride three-row crossover, which was partially restrained last year by the temporary shutdown of its plant in Georgia. Dealers will also have a full year of the new Seltos subcompact crossover, along with the redesigned and renamed Carnival minivan.

Dealers are also expecting a significantly freshened Stinger sports hatchback, and they were told that a secret project is coming that could be an electric crossover.

"Kia's position is that they want to be a leader in EVs," Morrell said. For the U.S., there's also a focus on plug-in hybrids, such as the redesigned Sorento.

Kia and its dealer council have revamped internal policies to promote profitability. Average dealer profitability doubled in 2020 as the factory offered floorplanning, co-op and pandemic-related programs, Morrell said.

The automaker also assured dealers that it has enough suppliers to get through the global semiconductor shortage.