Kia's astounding growth

MANILA, Philippines - Imagine the setting. A group of four Filipino motoring journalists (including our very own Manny de los Reyes and James Deakin) are discussing the troubles facing the world’s erstwhile auto industry leader – in a hotel lobby in Seoul, Korea. This after we had just arrived from a rather brash breast beating session from our hosts for our trip – Kia Motors. Imagine the juxtaposition of roles. A once proud and mighty American giant faltering at the effects of a stifling financial crunch discussed in the same breath as a Korean brand which was once upon a time the laughing stock of the auto industry.

Welcome to 2009. Where nothing – if you merely blinked for a moment, anyway – seems to make sense. As two of the three biggest American car manufacturers struggle to stay alive, we find ourselves engrossed in discussion as to just how mighty and influential the Korean car manufacturers have become. The thing is… the Koreans have always believed their products to be at par with the world’s best. It really is just now that the rest of the world is beginning to see their point. And we now have numbers to prove this.

From 2004 to 2008, Kia Motors managed to grow by 38 percent in terms of global sales. Through May of 2009, compared to the pre-crisis numbers from the same period last year, they have managed to sustain a 0.5 percent growth rate. Before this year ends, Kia will have been the only vehicle manufacturer to actually open a production facility in the United States of America (even as the American brands themselves have been forced to close some major production facilities of their own)! It’s mind boggling, if you really think about it.

But herein lies the secret of success of the Kia brand: relentless pursuit of proper positioning. When they started out (actually up to this day, to a certain degree), Kia was known for producing cars that gave value for money. Remember the ubiquitous – and still omnipresent – Kia Pride? That little bugger was their poster boy. Things are a-changing, of course. Kia has several new products coming our way. And through we cannot as yet reveal what those products are, suffice it to say that they are bound to raise the bar where expectations of Kia products are concerned.

Still, products alone do not make an entire business. A successful car brand must be able to meet sales and after sales service expectations if it is at all to thrive. Columbian Autocar Corporation, local distributors of the Kia brand, recognized this long ago. And they’ve made tremendous strides in an effort to address this concern.

Since 2006, Columbian Autocar Corporation has been on a tear as far as dealership network expansion is concerned. In fact, you may have already noticed it yourself. Since then until today, Kia dealerships have sprouted in practically every business corner one can imagine. They now have a staggering 53 dealerships nationwide. The goal was to pinpoint key locations – even if they were small – and build sales outlets in them. Two-car showrooms, we’re told, is how Kia officials refer to them. These showrooms would be in the periphery of a huge dealership that houses a fully functional service facility and a full showroom itself. There is one complete dealership for every three to four two-car showrooms.

“The plan is to make the Kia brand omnipresent,” explains Columbian Autocar Corporation president and COO Felix Mabilog, Jr. “We want people to feel that Kia is willing to go to where they are just to make the car-buying experience a pleasant and hassle free one. The complete dealership that is bound to be nearby every two-car showroom, meanwhile, is more than fully equipped to handle all their after-sales concerns. So both ways, their needs as Kia buyers and owners can be met by our facilities.” Didn’t we say that they’ve got a knack for positioning their brand properly?

Several years ago, we scoffed at the Korean made vehicles and made fun of how they positioned themselves vis-à-vis the Japanese and the American brands. Well, today the Americans are struggling to stay afloat and the Japanese are working hard to stay on top of their game. Guess who’s got all the momentum on their side?