Kia Wants Optima To Have Distinct Identity

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By RICK KRANZ | AUTOMOTIVE NEWS
AutoWeek | Published 05/09/06, 10:39 am et

YOUNTVILLE, California -- The Optima has been like an invisible vehicle in Kia's line.

Because the car has had little marketing support, customers stumbled across it as they walked through the Kia showroom, Kia officials admit.

"Mostly they came in looking for the Spectra," said Ian Beavis, vice president of marketing for Kia Motors America Inc. "If the price points were near the (Optima) or if the dealer was short a Spectra, then they would get an Optima."

But now that Kia has redesigned the Optima, it plans to put some marketing muscle behind the car.

"We will market it, and we will put money on the life cycle of the Optima to maintain a level of awareness far (greater) than its predecessor," said Len Hunt, Kia Motors America COO, during a media event in California's Napa Valley.

The redesigned Optima is an important element of Kia Motors America's goal of hitting 500,000 annual sales by 2010 in the United States. The automaker sold 275,851 vehicles in 2005.

The basics: Kia calls the redesigned Optima a "2006.5" model. Kia executives say that decision was necessary to separate that car from the 2006 Optima that went on sale last fall - the previous-generation Optima. The redesigned car also is certified as a 2006 model, executives say.

The new Optima is more plush, more powerful, more refined and a little larger than the previous-generation sedan. Kia executives say the redesigned Optima was created on a platform engineered by Kia and has nothing in common with a similarly priced vehicle, the Hyundai Sonata.

Hyundai Motor Co. holds a controlling 38.7 percent stake in Kia Motors Corp. The two companies have a history of sharing vehicles - the Hyundai Tucson and the Kia Sportage SUVs are built on the same platform, and Kia shares the Sedona minivan with the Hyundai Entourage.

On the road, the interior of the Optima is quiet, and the soft ride and handling bring to mind a Buick Century.

More than ample power is provided by the new Kia-engineered 161-hp, 2.4-liter four-cylinder engine that is standard in the base LX, a 16 percent increase in horsepower over the engine in the previous model. That engine is not part of the world engine family co-engineered by Hyundai, Mitsubishi Motors and DaimlerChrysler.

The Optima's 2.7-liter V-6 engine is carried over, but that engine produces 185 hp, a 9 percent boost from the previous model. Kia expects 80 percent of buyers to choose the four-cylinder engine.

A five-speed automatic transmission is standard on the LX model equipped with a V-6 and all EX models.

Notable features: The list of standard equipment is long - side airbags for front-seat occupants, side curtain airbags, power windows and door locks, heated outside mirrors, air conditioning and tire pressure monitoring system. The base 2006.5 four-cylinder LX model has a $16,955 sticker price, including shipping. The price is $35 less than the 2006 model.

Kia is touting safety in its ads, prominently mentioning the six standard airbags. Antilock brakes are a $300 option, and a package that includes stability control and traction control adds $300.

"Dealers don't want us to bring it in as standard," said Beavis. "It adds too much cost." The Optima is a $16,000 car, and some "people scrape to get to $16,000."

If a buyer wants to upgrade, an optional $1,300 leather seating package is available. It includes power adjustable accelerator and brake pedals, a manually operated rear window sun shade, heated front seats and power passenger's seat. Also available is a nine-speaker, 360-watt Infinity sound system.

What Kia says: "I think in this second-generation Optima, people are going to be very surprised in terms of what it offers. Key points are fun-to-drive, performance and handling, enhanced safety and a little bit of European styling," Hunt says.

Compromises and shortcomings: On first glance the impression is that the Optima sedan features a stylish interior that could be compared with cars costing $10,000 more. For example, the instrument panel's design curves at the corners and flows on to the door panels. An attractive range of colors, textures and silvery plastic surfaces are incorporated on the instrument and door panels.

While the "fit" is good, the "finish" disappoints. Rough-to-the-touch surfaces, such as the plastic trim plate that surrounds the power window controls on the front doors, and trim panels that differ in color as they flow from the instrument panel to the door panels, quickly remind the driver that Kia's intent to provide a taste of luxury at a Kia price is a work in progress.

Nuts and bolts: Kia aims for 50,000 annual sales of the new Optima, up from 41,349 last year. Sales began in March. Rivals are such vehicles as the Chevrolet Malibu, Ford Fusion, Honda Accord, Nissan Altima and Toyota Camry. The target buyer is expected to be in the mid-30s to mid-40s with a household income of $60,000 to $80,000 and some college education.

The skinny: It's a lot of car for the dollar and a big improvement over the previous-generation Optima. But the execution is several steps below that of a Honda Accord.