By on September 10, 2014

Kia Soul SXLast year was a difficult pill to swallow for Kia in America. After claiming record sales in 2012, Kia volume slid 4% even as America’s auto industry grew 8%.

There were inventory issues, but there was also concern that the new Sorento, though revamped under the skin, didn’t appear new on the outside. The Forte launch didn’t send shock waves through the compact segment. The Cadenza was never expected to be a volume leader.

Explanations for the decline didn’t stop Kia from “restructuring” either, as Kia Motors America’s executive VP of sales, Tom Loveless, was replaced by Michael Sprague.

Through the first eight months of 2014, however, Kia is back on track. Compared with the same period last year, brand-wide sales are up 7%. Compared with the first eight months of that record-setting 2012, sales are up 4.5%.

Admittedly, that pace is not in keeping with the pace of expansion in the overall industry (up 5.1% year-over-year, up 17.5% compared with the first two-thirds of 2012), but it’s a sharp turn in the right direction.

Credit is not owed to the brand’s best seller, the midsize Optima, sales of which are down slightly, just 0.6%, so far this year. Sales of the still-popular Sorento, Kia’s second-best-selling model in 2012 before last year’s 12% decline, are down 5% in 2014. Forte sales are recovering, but only marginally, and it trails ten different compacts in total year-to-date sales, including the Dodge Dart. Rio volume is down 11%. The Cadenza, K900, and Sedona – Kia’s three lowest-volume nameplates – have contributed an extra 3062 sales, not enough to overcome the Sorento’s losses.

Therefore, it’s the Sportage and Soul that are doing Kia’s heavy lifting; restoring the brand’s U.S. fortunes and reversing a trend that resulted in an 8% decline in the final four months of 2013.

The difference, of course, is that the Sportage is a minor player in a booming segment, and it in fact became increasingly minor over the last couple of years. Sportage volume is up 37% in 2014, and that’s no bad thing. But that year-over-year change masks the fact that Sportage sales in 2013 had fallen to a three-year low. Compared with the first eight months of 2012, Sportage sales are up just 6%; compared with the first eight months of 2011, Sportage volume is down 14%. Kia dealers surely appreciate selling more Sportages this year than last, but it’s not the vehicle they’d credit with fuelling Kia’s most recent resurgence.

Rather, the second-generation Soul, currently Kia’s second-best-selling model and the brand’s top seller during the month of July, is the source of this moderate surge. Through eight months, Soul sales have jumped 26%, equal to 21,569 extra units. Kia passenger car volume is up 7.7% with the Soul; slightly less than level without it. Overall Kia sales are up 6.9% with the Soul; just 1.5% without the Soul.

The Soul’s improvements have helped Kia’s market share rise slightly from 3.55% at this time last year to 3.61% in 2014. Had Soul sales only remained level, Kia’s market share would have fallen to 3.42%. Meanwhile at Kia’s Soul-less Hyundai partner, the brand’s market share has fallen from 4.63% to 4.48%, year-over-year.

The Soul was expected to be a niche success. It was, after all, a new introduction from a thriving brand in 2009. But how many observers predicted that Kia would abruptly stall, and that the Soul’s consistent success (volume has increased every single year even as it aged) would be followed up by a second-generation launch on which Kia would rely for big volume?

The Soul is currently America’s 29th-best-selling vehicle overall, only a handful of sales behind the Subaru Forester and Volkswagen Jetta and ahead of the Toyota Tacoma, Toyota Prius liftback, Nissan Versa, and Chevrolet Impala.

Timothy Cain is the founder of GoodCarBadCar.net, which obsesses over the free and frequent publication of U.S. and Canadian auto sales figures.

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82 Comments on “Imagine A Kia Without A Soul...”


  • avatar
    petezeiss

    I think Kia is fighting the last war by trying to ape the Japanese model of product development with Kia’s recent emphasis on upmarket sedans.

    The success of the Soul and Sorento should show them that it isn’t 1989 anymore and R&D dumped into bigger sedans is misspent.

    • 0 avatar
      DeadWeight

      We’re truly in uncharted waters on the subject of Korean vehicle pricing in the U.S.

      Let’s see what Hyundai/Kia do over the intermediate and long term now with their products priced at OR ABOVE the levels that their main competitors from Japan are priced at.

      It was only a few years ago that a Hyundai Sonata was easily 15% less than a comparably equipped Accord or Camry, in terms of MSRP (and even less once incentives were piled on).

      Now that Camrys are being blown out at 17.5k (LE) to 19k, and decently equipped Accords can be had for around 21k, we’ll see how HIGHER priced Sonatas and Optimas do.

      It’s a similar story unfolding for vehicles such as the Sportage & Soul, both of which are most likely more expensive than their direct Japanese branded rivals (yet still don’t measure up well against them in terms of durability/quality, IMO).

      • 0 avatar
        SC5door

        “It’s a similar story unfolding for vehicles such as the Sportage & Soul, both of which are most likely more expensive than their direct Japanese branded rivals (yet still don’t measure up well against them in terms of durability/quality, IMO).”

        Any facts to back that up? The latest generation shows that KIA listened to customers and provided a vehicle that is far an above the 500L, xB, and Cube. Yes it can get pricey, but Honda’s and Toyota’s were “cheap” at one point too. Only thing KIA needs to stop doing is using Nexen tires.

        • 0 avatar
          CJinSD

          Am I missing something? Kia Souls are $15K. Scion xB’s are 20% more, although their superior residuals mean leasing a Scion isn’t much more expensive. The Soul is today’s Neon. It provides more room and power than one might otherwise expect for the price in exchange for accepting low quality and being conspicuous in its cheapness.

          • 0 avatar
            SC5door

            What part about the Soul is low quality?

            An no the Soul isn’t the “Neon”. There isn’t any bone head cost cutting and de-contenting (See Neon: Rear windows, head gaskets, radiator design)

          • 0 avatar
            superchan7

            The old Soul was definitely a better buy than the Scion xB. The interior and the transmission choices are the saddest part of the xB, because it’s the $18k Honda CR-V that nobody knows about.

            The new Soul has a substantially improved interior, along with a price bump. I’ve read that it no longer rides like a penalty box, but I’m still glad we coughed up the extra dollars for a 500L. It’s much more car than a Soul, nearly as spacious as an xB, and a significantly better value than a Countryman.

      • 0 avatar
        bd2

        Both the Sonata and Optima had a higher ATP than the Camry and last year for a good no. of months, the Optima had a higher ATP than the Accord thanks to the popularity of the SX-L trim.

        Kia needs the K900 and Cadenza for their domestic market so bringing them to the NA market is just icing on the cake.

        The addition of the V6 should help K900 sales, but won’t see anywhere close to Genesis sedan sales (albeit the K900 is more of an Equus competitor).

        The next gen model with the addition of AWD should see a good bump as long as they get the design right.

        A production model of the GT (which supposedly has been greenlit), however, should be able to do something close to Genesis sedan sales levels.

      • 0 avatar
        alsorl

        Americans are finding out that Hyundai is building a just as good if not better engineered sedan as in the Sonata. Drive a 5 yo Camry back to back with a 5 yo Sonata. If the Toyota breaks your screwed, if the Hyundai breaks you just take it to the dealer. All these sedans are about the same appliance. Just packaged differently for that initial sale.

        • 0 avatar
          Dan

          The public image of Hyundai’s warranty greatly outshines the warranty itself. A 5 year Sonata is already out of warranty on all of the bits that break with any regularity.

          Which was the point, after all. Hyundai dug the hole it was in with low quality cars. The warranty was never meant to be used much, it was a marketing tool to illustrate that the cars had gotten better.

          One more way this segment is essentially interchangeable.

          • 0 avatar
            highdesertcat

            The Hyundai warranty was a HUGE selling point when my brothers took on the Hyundai franchise at both of their Calif locations.

        • 0 avatar
          DeadWeight

          I like the Accord but barely like the Camry.

          And I’d wager a large sum of money that either of the aforementioned vehicles is likely to be a) statistically far more likely to be far more reliable than any Hyundai (whether a Sonata or other), and b) statistically far more likely to be far more durable (i.e. More likely to be in service many years from now than any Hyundai (whether a Sonata or other model).

          Hyundais and Kias are so-so vehicles when it comes to short term and long term reliability, and neither can match the most reliable marques at present.

          Maybe they will one day be able to do so.

          • 0 avatar
            bd2

            Actually, the V6 Sonata from 2 gens ago was more reliable than the V6 Camry of the time, but the replacement with a turbo powerplant has hurt reliability (but has been improving as the bugs are worked out).

            We’ll see how things fare for Toyota as they start adding turbo engines to their lineup.

    • 0 avatar
      petezeiss

      “The success of the Soul and Sorento…”

      Derp… meant Soul and Sportage.

  • avatar
    30-mile fetch

    How refreshing it is to see a car company’s sales being somewhat buoyed by a compact hatch. I have nothing but respect for the Soul. Kia took a niche segment once owned by a Toyota offshoot and just bitch-slapped them into oblivion on the first try.

    • 0 avatar
      petezeiss

      Because at least with the Soul Kia understands the magic of tall.

    • 0 avatar
      Toad

      Hatchbacks used to be common in the US for good reasons: the seating capacity of a sedan, with greater carrying capacity, in a compact and fuel efficient package. The Soul is a great update on that formula; I hope other automakers try their hand at the same segment.

      • 0 avatar
        30-mile fetch

        I was disappointed by the Soul’s cargo space. If you’ve got backseat passengers you can carry more in a sedan trunk. But this is a common hatchback weakness, I feel the same way about the Golf.

        • 0 avatar
          psarhjinian

          The only hatch that really bucks that trend is the Fit, and that’s because of a floorplan that relocates the fuel tank, opening up a very low load floor.

          The snubby, not-trying-to-ape-an-SUV styling helps, too.

          The Soul is a good car, but the platform has limits.

          • 0 avatar
            30-mile fetch

            That’s why I like non-existent compact wagons. Same length as the sedan, but far more cargo capacity than a hatchback.

            I remember seeing the 2012 Focus wagon in one of those “you can’t buy this here in the US” articles. Looked absolutely fantastic.

          • 0 avatar
            gtemnykh

            Unfortunately the latest Fit has abandoned its very generous 22cu ft w/ seats up cargo area for something smaller, in favor of a massive increase in rear passenger legroom. Not sure that tradeoff is worth it, in my parents’ 2007 model I can “sit behind msyelf” at 5’11” plenty comfortably.

        • 0 avatar
          petezeiss

          Exactly, too truncated in the rear. Though I *never* have anyone sitting in back, even the seat-down volume is inadequate as long as there are Fits and small CUVs out there.

        • 0 avatar
          jaydez

          This is why I recently dumped my 2 year old Focus hatchback for a midsize sedan.

          With the baby in the back seat, the stroller and all his bags barely fit in the car.

          Now I’m quite happy in an Accord Sport 6MT.

      • 0 avatar
        matador

        I’m a fan of the unicorn out there- the station wagon.

        It’s the same length as a sedan, will carry way more than a hatchback, can carry 5 people while doing it, and doesn’t have the handling characteristics of a Wayne school bus.

        It’s a car… improved!

    • 0 avatar
      djsyndrome

      To be fair, Toyota did much of the work themselves by feeding the xB 600 lbs. of lard between generations.

    • 0 avatar
      SC5door

      Marketing. The rodent campaign caught on quite well.

      And Toyota just completely letting the xB sit out there with no changes. 4 speed automatic still in 2014?

    • 0 avatar
      superchan7

      The xB is a sad story. On one hand, it has 70 cu ft of max cargo space which rivals the $26k Honda CR-V.

      On the other hand it has an inefficient 4-speed auto and an interior from Crapville, Circa 1998. That really killed it for my wife, who also hated the central-mount gauge cluster.

      This car could have done so well. We went with a Fiat 500L with a 100k factory warranty upgrade.

  • avatar

    Imagine Kia without Seoul… Still waiting for that magnificent Provo ‘Mini killer’ concept car to materialize.

  • avatar
    Land Ark

    Can someone tell me if the steering has been rectified on the Optima?
    A couple years ago I rented one and couldn’t keep it in the center of the lane on the highway. Like the electric steering system wasn’t precise enough.
    I really like the car but had to cross it off my recommendation list for that reason.

  • avatar
    OneAlpha

    I’ve been imagining that since it first hit the market.

  • avatar
    CoreyDL

    I like the Soul, and I think the redesign is an improvement (especially the floating rear panel) which made it look a little less cartoony. Just like the Matrix, and the xB, I see mostly older people driving them.

    I still maintain they get too pricy too quickly, though. And they should try an AWD variant with Allroad-style cladding.

    • 0 avatar
      petezeiss

      Yep, they’re going to have to really persuade people away from the Renegade. As alluster notes, they’re not selling the Soul to fledgling kid buyers so low price is not the determining factor and a pricey but gotta-have Renegade will win.

    • 0 avatar
      slavuta

      The biggest improvement of Soul is in interior. Now, it is pleasure to sit in it.

    • 0 avatar
      SC5door

      The styling is done for the “all road” look as it’s out in Europe as the “SUV styling pack”, I doubt AWD will ever make it.

      If you can stay off the options you can get a ! for around $20K….problem is that when you want extras you end up with $4-5K “packages” which is absurd.

      • 0 avatar
        CoreyDL

        Yep, I think once you start adding packages you’re into Golf money?

        I can’t much tell the difference of the SUV Styling Pack versions.

        • 0 avatar
          SC5door

          $27K for a maxed out Soul. $5 bucks less for a SEL Golf, minus the HID lights and you end up with V-Tex seats vs Nappa Leather in the Soul.

          • 0 avatar
            DeadWeight

            Guess what?

            The Soul is not a sophisticated, precise, uber-reliable vehicle, and its dealer network has a very checkered history.

            Even were one to get a Soul with the finest Corinthian Leather and a 60″ LED HDTV, 27k sounds ridiculously expensive for what it is (do some research on its suspension design – we’re talking Suzuki SX4 level rudimentary level design).

            I think of the Volkswagen GTI/Golf you reference as a vehicle that’s about 3 classes more refined in any of its trim levels than any trim variation of the Soul, because its chassis, suspension and overall structural foundation (i.e. disregarding features, accessories and options) is far more intricate and engineering-oriented.

            Aside from that, the kind of people who “option up” their Kia Souls to 27k are the same kind of people who order a Hyundai Accent with every option available, including heated (and cooled?) leather seats, which is an incredibly idiotic financial decision in that class of vehicle.

          • 0 avatar
            CoreyDL

            Thanks. I’m sure the Soul is better value, and will indeed be more reliable over time – just doesn’t quite match the badge of VW, I suppose.

            Just think, if someone told you in 2002, that in around a decade you’d be able to buy a very competitive Kia hatch with Nappa leather, would you have believed them? I wouldn’t.

            Edit: And agree with DW, that it will certainly not feel Euro-refined like the Golf does. Are Kia dealers any more sketchy than VW ones?

          • 0 avatar
            slavuta

            The way manufacturers packaging now, I will HAVE to buy another Mazda

          • 0 avatar
            SC5door

            “The Soul is not a sophisticated, precise, uber-reliable vehicle, and its dealer network has a very checkered history.”

            The Soul is not a sophisticated, precise, uber-reliable vehicle, and its dealer network has a very checkered history.

            Even were one to get a Soul with the finest Corinthian Leather and a 60″ LED HDTV, 27k sounds ridiculously expensive for what it is (do some research on its suspension design – we’re talking Suzuki SX4 level rudimentary level design).

            Once again: Where are your facts? Where are you getting your quality scores from to determine that it’s not a reliable car?

            And what about the suspension design?

            MacPherson Strut front and a torsion beam rear? The same one that’s used on the Honda Fit? (Which BTW uses DRUM brakes on the rear.)

            The 1st generation was pretty basic. The subframe was bolted directly to the chassis with no cushion, while the new one (2014 and up) has bushings. It retains the MacPherson Strut, while the shocks on the rear have been relocated.

            Once again you’ve posted garbage with ZERO facts, and hear say.

            And if someone wishes to load up their car with all the options then so be it. You’re opinion is just that, AN OPINION. It gets really tiresome around here when people like you believe that the choices others make in their purchases are stupid because YOU SAY so. When you get to pay everyone’s car payments then you can decide on what everyone gets to drive and buy. If there wasn’t a demand for high end options, then auto makers wouldn’t offer them. If KIA/Hyundai honestly believed that there wasn’t a market then they wouldn’t offer it, obviously KIA can charge it and they sell every one that they make. UNLIKE Fiat, which has halted production of the 500L due to poor sales—They sold 33 units in August of 2014.

          • 0 avatar
            petezeiss

            What car out there is both “sophisticated, precise” as well as “uber-reliable”?

            Aren’t the snootiest of cars also the ones nobody keeps after the lease is up?

    • 0 avatar

      Yeah, the big thing with the Soul is not the aesthetic improvements (which are great, to be sure) but rather the fact that it rides much better now and is a lot quieter, while still handling pretty decently (not GTI good or anything, but totally acceptable for something so tall).

      It’s a well done product.

    • 0 avatar
      superchan7

      The Soul should never be selling in the $27k area. If you get a loaded Soul, you are either keeping it forever or buying on impulse as you will get none of that value back when you sell to the next owner.

      A lightly optioned Soul is still a great value in the $18k area, especially with the praised improvements in interior and ride quality.

      • 0 avatar
        SC5door

        If there wasn’t a market for it, KIA wouldn’t offer it. Hence lessons learned from the Borrego. It didn’t sell, and the car was pulled from the market.

        • 0 avatar
          CoreyDL

          I always felt the Borrego and Veracruz were a little underrated, and most people just did not know about it. (Have always assumed they were on the same platform, mebbe not.)

          In fact, I think I’ll recommend a Veracruz again to my parents in their SUV shopping. It looks pretty good in two-tone, is available with good equipment levels, and is heavily discounted.

  • avatar
    Landcrusher

    Sportage and Sorento numbers from a few years ago got warped because they were trying to flip everyone who didn’t buy a Sportage with no questions asked into a Sorento. The price was nearly the same and I think it confused buyers. Then, the new Sorento looks like the old when which can be had used pretty cheaply I suspect.

  • avatar
    Da Coyote

    I have aways liked the look of the Soul, and rented one not that long ago. It was enjoyable to drive and a what I consider to be a very good value. Personal opinion, of course, but considering all the McCars that have been forced on me during my travels, it’s interesting to note that one of the least expensive was – IMHO – a very enjoyable ride.

  • avatar
    AoLetsGo

    I rented the new one for 3 of us this past winter. It was slow, mileage was mediocre, and no storage. Interior passenger room was spacious though.

  • avatar

    Kia seems to be dumping a ton of money into advertising for the K900 – I’ve seen a bunch of ads for it on my favorite news channel, the ones with the dude from The Matrix.

    They would probably be better off running more ads for Souls and Sorrentos. I think they are hoping the k900 will be a halo car of sorts, but I doubt anyone looking at a soul cares.

  • avatar
    dal20402

    When Honda made it big in the US in the ’80s, part (although far from all) of the reason was the obvious passion for engineering displayed in the product. Hondas of the time were designed by people who applied more cleverness than you could get from anyone else. The product planning was decent too, but the real reason to buy a Honda was sheer joy in the product.

    Now Hyundai/Kia are trying to ape Honda’s breakout strategy from a marketing perspective: underprice the competition, move upmarket one segment at a time, demonstrate durability, slowly build up brand equity. But I don’t see the obvious passion for engineering in their products, so I don’t want to buy the products nearly as much. (And that is before we get into their continuing failure to develop cars with good driving dynamics.)

    • 0 avatar
      petezeiss

      “continuing failure to develop cars with good driving dynamics.”

      Well, for the Soul’s clientele driving dynamics are good enough if you can uneventfully get to and from the pharmacy and chiropractor at 40 mph. Mission accomplished.

      I say this as one of that demographic.

    • 0 avatar
      bd2

      The new Sonata is considered to be a better driver than the Camry, so what does that say about Toyota (nevermind that Kia’s box-ute beat the Corolla in a comparison test).

      And Kia’s pro_cee’d GT (which we don’t get here) is a fun drive.

  • avatar
    VanillaDude

    If AMC still existed, this would be the 2014 Gremlin.

    • 0 avatar
      CoreyDL

      Speaking of which, what was the basic difference between the Pacer and the Gremlin? I have always thought they existed in the same time span,a nd would seem to be too similar.

      I’m not going to quickie research or it would ruin the surprise.

      • 0 avatar
        CJinSD

        The Gremlin was just a subcompact made out of a compact by cutting off the trunk and shortening the wheelbase. It was essentially a Hornet minus the utility, like a 1-series BMW. The Pacer was a silly high-concept small car that combined some of the Gremlin’s faults(high weight relative to other small cars) with its own unique designer-induced dopiness. The Pacer was packaged to house GM’s anticipated rotary engine. When that failed to arrive, they stuck a giant inline six into an engine bay meant to house a little 2-rotor Wankel. The engine intruded into the interior. The doors on either side of a Pacer are different lengths, to make it easier for rear seat passengers to board on the curbside. The rear seats of the Pacer are between the rear wheels, and there are only two of them. The huge windows necessitated A/C during a time when A/C wasn’t a popular economy car option.

        Personally, I like seeing original Pacers on the street. They at least looked pretty neat until AMC stuck fake radiator shells onto them.

        • 0 avatar
          CoreyDL

          Thanks!

          I should think the seats between the wheels in a car that small would be a rough ride, and include lots of road vibrations.

          My mom’s first car she bought herself was a used Gremlin, in “Easter Egg Blue, and it had a gold pinstripe! It was so ugly, bleh.”

          I like AMC’s, and I’d like to think if they were around today and made decent cars that I would have one. I like their larger cars like the Marlin. Saw an Ambassador wagon in a movie recently (Conjuring) and thought it looked very nice.

          • 0 avatar
            danio3834

            I find AMC products interesting too. They had quite a few hits over the years that helped keep their small operation afloat in an industry dominated by the Big 3. Sadly they also had a lot of misses and didn’t have the capital to stay competitive in the late 70’s and early 80’s with their mass market cars. Their niche strategy of developing Jeep into more than just rides for ranchers and mountain men turned out to be a good predictor of the future. The AMC Eagle could be considered an early example of what we now call a crossover.

  • avatar
    bd2

    Too much is made of Kia’s dip in sales in 2013 – which was largely due to 3 things.

    1. Sedona canceled, but then brought back mid-way thru the year.
    2. Drop in Forte sales as Kia switched over to the new gen model.
    3. Drop in Sorento sales as more production at Kia’s GA plant was switched to the new Santa Fe Sport.

    Sales are up for 2014 due to the new Soul and the US market getting a larger supply of the Sportage (supply of the Sportage, Rio and Forte are still tight which is why Kia decided to build a new plant).

    A new Optima and Sorento should boost ATP but won’t really boost sales as Kia doesn’t have the production capacity to build more (what Kia needs is for Hyundai to find another plant to build the SFS so that Kia can build more Optimas and Sorentos).

  • avatar
    smartascii

    This sells well in part becuase it appeals to old people, who don’t care one way or the other about branding/marketing/whatever, and just want a car that is cheap to own, has seats that aren’t down on the ground, and good visibility. The Soul is one of the econoBOXes that doesn’t have wierd styling (Cube) or poor mileage (xB), and it comes with a decent warranty.

  • avatar
    genuineleather

    Sorento is old and soon to be replaced; the Optima is now the oldest offering in a very competitive segment; Forte isn’t compelling enough to command the premium now priced into it; Cadenza offers no additional features or space over the Optima despite the $5-7k price premium.

    The K900 is a joke at $67k; what’s the incentive over a 550i/S6/E550? I get that it’s supposed to be an S/7/A8 competitor, but those cars are status purchases, not practical responses to an actual need. Buyers are not clamoring for a “less good” version of Siebener for a knockdown price.

    • 0 avatar
      superchan7

      You’re preaching to the choir. The Hyundai Equus and Kia K900 are really meant for the domestic market in Korea, where import luxury cars were taboo until recently–you really did not want to be seen in one, plus the prohibitive import taxes.

      People buying 7s and S-classes are NOT looking for value. Those looking for value will shop smaller cars, even the rich ones.

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