Kia posts gain

Kia Motors Corp has reported a 48 per cent gain in sales of its vehicles in the United States (US) in November to 26,601 vehicles for the month, largely based on higher sales of its Soul wagons and Sorento SUVs, according to Bloomberg business analyst reports.

"Brand perception has improved fast in the US after Hyundai and Kia started to sell new models that have improved quality," said Cho Soo Hong, an analyst at Woori Investment & Securities Co in Seoul. "The global financial crisis and Toyota's recalls also helped speed up narrowing the gap between consumers' perception and actual quality improvement made in Kia and Hyundai cars."

Kia/Hyundai Surge:

Combined sales in the US for Kia and Hyundai which share vehicle platforms, powertrains and a chairman, top those of Nissan's this year through November, at 819,250 compared with 814,840 for Nissan. If the lead continues in December that would rank the partner companies sixth in US sales volume for the first time, behind GM, Ford, Toyota, Honda and Chrysler, Bloomberg notes.

Responding to the announcement, Head of Kia Jamaica, Dwight Moore, noted that the positive response by US motor vehicle consumers reflected the increased awareness by them on the need to move towards safer and more fuel-efficient and environmentally friendly vehicles.

"This attitude is gaining traction globally and Jamaican consumers cannot afford to be left behind ... likewise the government must develop policies that reflect, support and anticipate the changing ethos," said Moore.

Recommended ingredients

He recommended any motor vehicle policy being anticipated by policymakers must, of necessity, include the following ingredients:

Contribute to fuel savings;

Reduce congestion on the roads;

Reduce the expenditure of foreign exchange;

Contribute to the simplification and cost of vehicle servicing i.e. tyres, batteries, spare parts spark plugs;

Result in an attitude and outlook towards vehicle purchase that is in line with the country's level of development and real-disposable incomes;

Increase national savings.

Bloomberg also noted that Hyundai's sales grew to 40,723 vehicles in November, a record for the month, while Toyota's sales fell 3.3 per cent, the sole decline among major automakers, and second consecutive monthly drop for the world's largest car company. Honda Motor Co's sales rose 21 per cent and Nissan Motor Co's grew 27 per cent.

Operating profit at Toyota, which exports a higher ratio of vehicles than Nissan or Honda, is cut by 30 billion yen ($357 million) for each one yen appreciation of the Japanese currency against dollar.

Honda, based in Tokyo, delivered 89,617 Honda and Acura-brand vehicles, an increase from 74,003 a year ago. Sales rose 37 per cent for the revamped Odyssey minivan and 31 percent for the compact CR-V crossover. The Accord car, Honda's top-selling U.S. model, had a 10 percent increase. The company's Acura brand had a 22 per cent increase, aided by higher sales of TSX and TL sedans and MDX SUVs, Bloomberg noted.