Hyundai Kia- The Korean King

When an automobile affcionado talks about cars, His love is either Japanese, German or American with Swedish or Italian as occassional exceptions. But Hyundai-Kia Automotive group has over the years taken centerstage matching the might of biggies like GM, Ford, Volkswagen, Honda and Toyota. The biggest Korean automaker is the second largest in Asia beating the likes of Honda, Nissan and Tata and fourth globally. Surprised? Even the Auto experts were baffled when Hyundai launched its first premium car since the company's inception in 1967, the Equus which can compete with offerings from other luxury marques. Also Hyundai flexed its muscles with the Genesis coupe answering Mini Cooper's challenge when Porsche didnt budge.

After Hyundai Motor Company (which is not a part of the Hyundai group anymore.) acquired Kia Motors in 2001, things have been going great for both the brands. Lately though, their stake has hovered close to 40% showing Hyundai is not yet clear of its intentions under the Hyundai Kia Automotive group. Usually known for their boring and/or Korean designs under both the brands, the company has improved vastly after appointing Peter Schreyer ( The man behind the new look for Audi and Volkswagen cars.). Looking at How Tata has integrated itself with Jaguar LandRover and how Ford-Lincoln is doing wonders Hyundai-Kia is taking the similar route albeit with confusion added.

Kia Soul which brought Kia the much needed attention during N.American Small car boom.

Hyundai-Kia has recently churned out some excellent cars which are reliable, fun to drive and can match the competition but its the image that has not been able to shake itself up to the standards. Why would someone pay $60,000 for a Hyundai compared to let's say a BMW, Audi, Lincoln, Lexus or Infiniti? With the success Hyundai has had with Santro, I10 and Accent worldwide, nothing short of a blitzkrieg can help strengthen Hyundai as the luxury brand. Hyundai Marketing team is intelligent enough to know how tough it is to go up the premium brand ladder and hence they have been working hard in tandem with the design, engineering and R&D teams to make sure the task is fulfilled with as much efficiency as possible. Why should Hyundai peg itself as a luxury marque? simply because Kia has erupted as a powerful force in the mainstream and it is not smart on the company's behalf to create competition within. It is the same mistake Peugeot-Citroen and Fiat with Dodge-Chrylser are making right now.

The 2011 Hyundai Equus.

For beginners Kia brand needs to be introduced into several markets like India where Hyundai enjoys a market leadership (2nd largest Automaker). The badges on Santro, i10, i20, Accent(Verna) and Sonata should be changed to a Kia first so that people get accustomed to the logo. Showrooms can be branded as Kia hyundai showrooms for the transition period. The car brands should be kept since i10 and Santro are very powerful. Gradually the platforms can be aligned with the likes of Kia Picanto, Kia Venga, Kia Soul Kia Rio and the K5. Having Kia Picanto and I10 fight for the same customer is not a very smart step in the first place and neither is selling a $10,000 hatch in India and selling a $60,000 saloon in US.  The repurcussions can be seen with a slower growth for Hyundai in the markets where they have increased prices to command a premium. Corporate automotive houses like GM, Ford, Fiat, Volkswagen and others exist for the very reason.

The Kia Cedanza with tiger grille and new design philosophy.

Kudos to Hyundai for badging the Equus with a new logo. It will be a good move to use this love on the Azera, Genesis and Sonata right away. Also helpful will be to stop using the names Santro and Accent temporarily so that the the company can introduce them at a later time to compete with the likes of Alfa Romeo, Mini and BMW hatches. I do need to ad here that The New Hyundai luxury cars try to imitate Benz models a lot and Hyundai needs to work hard on this. I will vote in favour of using model names starting with C or K (Cadenza, Ceed, Carens) ( Koup, Kee, K7) for Kia cars and using the new i (i10, I20, I30)series for Hyundai cars. It helps provide the car a distinguished image and feel.

The new Hyundai Luxury logo on the Equus.

Kia needs more global market penetration to be that mainstream bread and butter brand to compete with the likes of Honda, Toyota, Chevrolet and VW. Cars like the Cadenza, Optima, venga and Forte/Fortis have won rave appreciation for design and engineering and now they need the right opportunity to compete with the likes of Civic, Corolla and Fiesta. Talking about the brand Hyundai, the company needs heavy marketing initiatives to get their cars into the minds of the luxury car buying public. Here's an example of how BMW makes sure that a premium Jaguar buyer atleast thinks about BMW once.

Obviously Big companies wont sit silent, but any publicity is good publicity. In this case Jaguar reacts to BMW's marketing initiatives indirectly helping BMW pit itself against the mighty cat.

Similar marketing efforts should also be carried out for Kia with Direct competitors used to build up the customer's mentality.

The Corporate grille and concept presentations held for the Hyundai Equus and Genesis is an example of the best manner in which to promote a luxury marque. But Hyundai needs to advertise a multimedia system like the BMW idrive and Audi MMI which does go someway in enhancing the luxury brand. A limited edition car in collabration with a fashion house certainly helps. If Asus can sell lamborghini laptops, LG can also help with the cholate entertainment system or a Samsung Armani system similar to what ford and Fiat have with Microsoft.

 Finally Kia needs a holding in the tuner market to appeal the youth which make up the car buying chunk. Honda has Mugen, Nissan has Nismo, Mitsubishi had Ralliart and such tuner divisions go a long way in cementing the brand image for a company. Mobis needs more funds, awareness and participation in street tuner scene. Hyundai on the other end should focus on Nascar, F1 and GT racing where premium brands compete for showing their R&D credentials.

A MOBIS tuned Tiburon.

 One should also not forget how the Skyline became a household name in the U.S with the movie 'Fast and the Furious' and how Mitsubishi rebounced after sponsoring '2 fast 2 furious'. Aston Martin brings Bond to mind.

Italian Job starring Mini Cooper

SAAB and its sales woes.

With the onset of recession in the beginning of 2009, many industries have been affected with lack of funds.  Even behemoth General Motors and Chrysler which went bankrupt for the second time could not be saved. Not getting into the details, General Motors paid a heavy price for bad management decisions taken over the years. Such is the sad case of a small car maker from Sweden that goes by the name SAAB.

Saab was basicaly a Swedish Aeroplane manufacturer which later made aerodynamic, quirky and fun to drive cars. Their first car was brought to life at the Swedish Royal Institute of Technology after the end of the second world war for want of diversification in the company. What followed was a legacy of cars which stood out in the crowd for their designs such as the Sonnet and the famous 900. But just like Volvo which was bought by Ford, Saab went under GM ownership in 1990's. To add to the woes, while Ford shared technology alongwith Mazda and Volvo to make better cars,Saab languished at GM. GM stated recently that Saab only posted profit once in 11 years under GM ownership. Saab 9-5 has been in production for 11 years

When Saab was put on sale last year, various small boutique manufacturers from Europe tried to cash in on the company's strength. Victor Muller who owns Spyker cars N.V. ultimately brought the brand back to Europe. Not surprisingly even after the introduction of their latest and much hyped car the Saab 9-5, Sales have been dismal. The company sold 277 9-5 and 13 9-3 cars last month in the U.S.

With only 2 car platforms at hand selling 40,000+ cars is a tremendously tough task. Add to that lack of various body styles and engines, Saab is yet to have enough to offer to the customer. Yes, their units are still way off Jaguar's mark which has recently been brought into place by Tata motors. Saab can learn a trick or two from them.

Saab's management is hopefully aware that people have forgotten SAAB when it comes to buying a car. Those who talk about it on the internet and in magazines are not exactly the target customer having money enough to buy a luxurious European car. So for someone considering a Volvo S60 or an Audi A4, BMW 3-series or Mercedes-Benz C-class for purchase, saab 9-3 is not in consideration just as 9-5 is not under the radar for those looking for a S80, E-class, 5-series or A6. I do understand that the 9-5 needs a push but isnt the 9-3 Saab's bread and butter model? It would do them a world of good if they promote 9-3 to the car buying public in comparison to the competition. Most of the Facebook page is in Swedish which half the world doesnt understand. The few forums that stood loyal during the company's bad times have no company marketing support. Here is an example from by BMW against Audi providing a lesson in competitive but healthy marketing pracetices.

 Furthermore, Saab's marketing department has looked over their biggest marketing strength. The Saab performance team. The Saab performance team is one of the best examples of how a company can build its image. I am yet to see a similar feat from either BMW, Audi, Volvo or Mercedes-Benz. An official video on Youtube will do the talking for the company. For those who dont know what I am talking about, here's the famous Performance team video feat the Saab 900.



Another serious drawback is the fledling dealer network and the markets they pulled out from affecting sales.  Saab pulled back from various countries including the US and Canada when the new owners took over. It takes time to build but it better not take too much time. Money is an issue but reach is not. Where are the road test reviews from prominent reviewers like Topgear and Insideline for the 9-3 and 9-5? I am sure Victor Muller and Jan Ake Jonsson are aware how a huge chunk of the population relies on such road tests.

I have liked the latest 9-3 ever since it was launched. The headlights and the taillights are some of the most beautifully designed parts on a car I have seen. But when I see a Subaru Impreza I see a Blue car, I see a Mitsubishi Lancer in red, I see a BMW in Dark blue, An Audi in White, A Mercedes-benz in Silver. All the cars which are fun to drive have a cult following thanks to a particular image built by the company. Whenever I fantasize about a Lamborghini I think about that Burnt orange shade shining in the daylight. Cult following doesnt come by investing heavy money in marketing or racing. More than working on the design Saab should focus on providing their cars with more after market parts and building a particular image. Making the 9-3 and 9-5 unique is what will help sell their cars. Mercedes-Benz is about luxury, BMW is about Sportiness, Audi fit itself somewhere in between while Volvo is that Safe and sturdy family car. Where does Saab fit? What image does their advertisement convey? A green car isnt necessarily something a customer looks at though it looks good on the company's resume.

 How about bringing back the 9-3 turbo X in Carbonfiber Black (visible weave patterns) and promoting it in ads, youtube racing videos, Wallpapers and video games such as Need for Speed? A Björn Borg edition 9-3 with tastefully done interiors? Wont that help sell more cars and improve brand image? Knowing its history and the way their cars perform I would look at SAAB as the Ironman (comic hero) of cars which can walk the ramp when needed but also beat competition on the tarmac.

What the current ads dont do for Saab is bring customers to the showrooms making up the fledgling dealer network. How can cars sell if the customer is not there in the first place? Roadshows are cheaper and work better than tv spots. More roadshows will only help potential customer feel the new Saab and how it is the right car for them. Here is a Saab and Audi ad to decide which will fare better.

The Saab commercial



The Audi commercial



Here's a look at the table to show where Saab cars stand compared to the competition.

Car	Dimensions	Technologies	Engines options	Body styles
Saab 9-3 (2002) Sweden $28,900 US	183 x 69 x 56 wheelbase-2675mm	Saab Car computer GM Epsilon platform	2.0L I4 petrol 2.8L V6 petrol 1.9L I4 diesel 2.2L I4 diesel	Sedan Convertible Station Wagon
Volvo S60 (2010) Sweden $32,000US	182 x 73 x 58 Wheelbase- 2776mm	IDIS Volvo Y20 platform	1.6L I4 petrol 2.0L I4 petrol 3.0L I6 petrol 1.6L I4 diesel 2.0L I5 diesel 2.4L I5 diesel	Sedan Cross-over (SC60) Station Wagon (V60)
BMW 3 (2005) Germany $33,150US	178 x 71 x 56 Wheelbase- 2761mm	idrive E90 platform	1.8L I4 petrol 2.0L I4 petrol 2.5L I6 petrol 3.0L I6 petrol 4.0L V8 petrol 1.6L I4 diesel 2.0L I4 diesel 3.0L I6 diesel	Coupe/Convertible Sedan Touring
Audi A4 (2008) Germany $31,950 US	185x 72 x 56 Wheelbase-2805mm	Audi MMI VW B8 platform	1.8L I4 petrol 2.0L I4 petrol 3.0L V6 petrol 3.2L V6 petrol 2.0L I4 diesel 2.7L V6 diesel 3.0L V6 diesel	Sedan Station wagon
Mercedes -Benz C (2008) Germany $33,900 US	180 x 69 x 57 Wheelbase- 2760mm	Command APS W204 platform	1.6L I4 petrol 1.8L I4 petrol 2.5L V6 petrol 3.5L V6 petrol 6.2L V8 petrol 2.1L I4 diesel 3.0L V6 diesel	Sedan Station Wagon

Car	Dimensions	Technologies	Engines	Body styles
Saab 9-5 (2010) Sweden $47,565 US	197 x 73 x 57 Wheelbase- 2837mm	Saab Car computer Gm Epsilon II platform	1.6L I4 petrol 2.0L I4 petrol 2.8L I4 petrol 2.0L I4 Diesel	Sedan
Volvo S80 (2006) Sweden $36950 US	191 x 73 x 58 Wheelbase- 2835mm	IDIS Volvo Y20 platform	4.4L V8 petrol 3.2L I6 petrol 3.0L I6 petrol 2.5L I5 petrol 2.0L I4 petrol 2.4L I5 diesel 2.0L I4 diesel 1.6L I4 diesel	Sedan Station Wagon (V70)
BMW 5 (2010) Germany $44,550 US	193 x 73 x 57 Wheelbase- 2968mm	Idrive F10 platform	3.0L I6 petrol 4.4L v8 petrol 2.0L I4 diesel 3.0L I6 diesel	Sedan Station Wagon Touring
Audi A6 (2004) Germany $45,200 US	194 x 73 x 57 Wheelbase- 2843mm	Audi MMI Volkswagen C6 platform	2.0L I4 petrol 2.4L V6 petrol 2.8L V6 petrol 3.0L V6 petrol 3.2L V6 petrol 4.2L V8 petrol 2.0L I4 diesel 2.7L V6 diesel 3.0L V6 diesel	Sedan Station Wagon
Mercedes-Benz E (2009) Germany $48,850 US	191 x 73 x 59 Wheelbase- 2873mm	Command APS W212 platform	1.8L I4 petrol 3.0L V6 petrol 3.5L V6 petrol 5.5L V8 petrol 6.2L V8 petrol 2.2L I4 diesel 3.0L V6 diesel	Sedan Station Wagon Convertible/Coupe

Ten best drivers cars that wont break your bank account.

One doesnt always need the likes of a Lamborghini or Ferrari to enjoy driving when young. Not all are born as heirs to the Hilton family with a spoilt reputation of tipping waiters lavishly. So what should we buy to satiate our adrenaline? Here are the best ten driver cars to play video game on that open stretch of road behind your house. No reviews will do justice to their cult image. What's more exciting is that these fun to drive cars under $25000 US wont break your bank account and many will also fit the criteria of fun to drive family cars.

1. Ford Mustang/ Dodge Challenger/ Chevrolet Camaro: No human is as American as these three muscle cars.  Their blood so American and so pure it would bring peace to Iraq and Afghanistan they were to rul US as joint President. Big coupes with so much power they can stop earths movement if driven in opposite direction, these cars cannot be beat in straight line acceleration. Who want to drive them in turns? (don't even try even if the sales person says so.) Starting at 22K for a v6 engine their price range goes upto 35K for a v8 configuration. But for the cash strapped a 25K worth v6 for any of the three will keep you happy for the years to come. Yes, they are as reliable as Japanese and you dont need tuner parts for power.

2. Mitsubishi Lancer/ Subaru Impreza: While we humans have lost the talent to produce twins and triplets, all is not lost in the world of cars. Mitsubishi Lancer and Subaru Impreza are the closest brothers from another mother. While Evo versions and WRX STI versions might be expensive these rally bred cars in city guise are still pretty fun to drive unlike Civics and Corollas. Just like the v6 versions for Muscle cars these Tuner cars come in the WRX and Ralliart guise.

3. Volkswagen Golf/Polo: People's car, lots of power, small size and affordable price. Voila!!! you have the polo/Golf brothers. The smaller Polo is certainly cheaper and provides lesser thrills compared to the Golf but the fun to drive factor is not amiss in either of the two. German Engineering, reliability and the buttersmooth slushboxes (gearbox) make these pair delightful to drive. Got a bit more to spend? try the Passat. Did I tell you some versions of these cars have a turbocharger and supercharger installed on a small capacity engine? Yes it won the engine of the year award back then.

4. Mazda Mx-5: What do you call a no compromise on adrenaline car?  Miata. The Mx-5 from Mazda is something the world has always needed. A lightweight engine in a lightweight but rigid chassis with open top experience at a mouthwatering price. So small you can slot it anywhere. I want one please? Oh! make that two as they will fit in my parking garage. Thank you!

5. Ford Fiesta : Ford didnt file for Bankruptcy like its American counterparts. One of the reasons is supposed to be the New Ford Fiesta from Europe which sold like hot cakes and solidified Ford's image for fun to drive cars. Our Fiesta in India doesnt do bad either beating the likes of Accord's and Laura's to every nook and corner. One of the best value for money hatches from Ford rightly makes it to sixth place.

6.  Vauxhall Corsa: GM went into bankruptcy. GM went crazy and put Opel/Vauxhall for sale. Magna was intelligent and put up a big to buy it. GM management changed and smart people saved the brand. GM today is on its way to profits again. Opel/Vauxhall has a big hand in why GM Europe survives and for a good reason. It's cars like the Corsa and Astra. Bang on!

7. Renault Megane: Nothing is as Quirky as the French when it comes to the love of styling and fashion. But Renault has been able to translate their fashion trends into one hellish little driving beast. The Megane over the years has won many car of the year awards and WRC championships. It certainly wont win any beaty contests but you cant resist French kissing this one over the tarmac.

8. Peugeot 207: Another French maker makes another car worth French kissing. This one also oozez style and power like Monica Belluci. Yes, this one is as fierce as the lion logo on its grille.  This one is truly about motion and emotion. Might come to India soon. Mitsubishi has just given Peugeot 207 a chance in India by pricing the EVO at 40,00,000+ INR.

9. Mini Cooper: Mercedez-Benz Failed with their Smart car venture but BMW was luckier to have the Mini in their hands. Some of the best marketing initiatives later this car has what it takes to beat supercars at their own game. We dont say this, try one yourself. The clubman needs to go and we need twincharger here VW style. BMW are you listening?

10. Honda Civic: It will be a sin to not have one V-tec car in the top ten list here. Known for their Engineering Honda is Japans answer to German BMW's.  Type R and Type-S are not sports cars at heart but still provide enough grunt and control to satisfy most boyracers out there. While Lancer and Impreza are city cars built on rally bred chassis, Civic here is a sports car based on a city car. Not bad I must say.