Kia, which has made a name for itself as a value brand, is expanding into the luxury market with the 2015 K900 sedan meant to redefine how consumers view the Korean automaker.
“K900 is the beginning of a new era for Kia,” said Michael Sprague, executive vice president of marketing and sales, who was in Detroit Thursday to address the Automotive Press Association.
On another note, Kia is ending its sponsorship of the L.A. Clippers NBA team, in a move Sprague said “was an easy decision to make” after racist comments by owner Donald Sterling.
“We were all just horrified by what the owner of the Clippers said,” he said. “There was never any question. This is not something we want to be associated with.”
Kia will continue to support the NBA and about a dozen other teams.
But Sprague mainly wanted to talk about the new full-size luxury sedan.
Powered by a 420-horsepower 5.0-liter V8, the K900 went on sale in March, starting on the West Coast. It is being rolled out in the Midwest this month and should be available in Detroit shortly before launching in the Northeast, Sprague said.
“We need to change the perception of the brand in the marketplace,” said Sprague, who sees no reason why Kia can’t sell a $66,400 rear-wheel drive sedan targeted at males ages 45-54 with household incomes of $200,000.
“It will be a halo for the brand,” Sprague said of the car that is cousin to the Hyundai Equus.
The K900 is sold as the K9 in Korea and as the Quoris in the Middle East, China and some other markets. Sprague said the decision was made to go with K900 in North America because alphanumeric names are popular in this market.
After a strong 2012, Kia’s U.S. sales fell 4% last year, partially because it had down time associated with the launch of seven vehicles. Supplies were also strained because of a strike in South Korea.
The fresh lineup comes during Kia’s 20th anniversary of selling vehicles in the U.S. More new models are on the way, including the next-generation Sedona minivan, designed to appeal to those shopping for a crossover, slated to reach showrooms in the fall.
An electric version of the Soul will debut on the West Coast this summer and become available in the rest of the country early next year. Expanding into hybrids and electric vehicles “says we are a Tier 1 brand,” Sprague said.
The executive is also hoping the GT4 Stinger sports car concept shown at the North American International Auto Show in January will go into production. “We’d really like to see it on the streets of Detroit,” Sprague said.
The focus now is on quality, strengthening the brand and elevating the customer experience, Sprague said of the brand that has doubled sales and market share since 2009.
