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2020 Kia Telluride crossover moves the brand upscale, and a bit off-road

Kia added its newest and largest entrant to its lineup, unveiling the designed- and made-in-America Telluride as its new flagship. It's a handsome and sporty midsize three-row SUV that seats eight, offers upscale interior perks and safety technology, plus off-road capability. The reveal brings the Telluride full circle from its origins as a concept first shown in Detroit three years ago. Kia will emphasize its rugged looks and comfortable, well-appointed interior when it goes on sale later this year as a 2020 model and takes on well-entrenched competitors like the venerable Ford Explorer (itself redesigned for 2020) and the Jeep Grand Cherokee. Designed at Kia's studio in Southern California, the Telluride deliberately harkens to the boxy appearance of O.G. SUVs like the aforementioned Explorer, with a long hood and wide grille, a clean side profile and upright windshield. Nameplates adorn both the leading edge of the hood, atop the grille, and on the liftgate, with stacked headlights, inverted L-shaped taillamps and a sculpted rear skid plate with integrated twin exhaust tips. The Telluride is powered by a 3.8-liter direct-injection V6 making 291 horsepower and 262 pound-feet of torque mated to an eight-speed automatic. There's four-wheel independent suspension and stiff, torsionally rigid body structure owing to an advanced high-strength steel monocoque shell. The rear suspension is self-leveling, with the ride height automatically calibrated depending on the load to benefit control and stability. Four driving modes are offered — Smart, Eco, Sport and Comfort — plus Snow and AWD Lock settings when needed. On-demand all-wheel drive will be an option, distributing torque between the front and rear wheels depending on road conditions and the driver's input. Kia says it's based on electro-hydraulic AWD coupling and constantly redistributes power between the front and rear wheels depending on drive mode — for example, splitting it 65 percent to 35 percent between the front and rear wheels in Sport mode. Inside, there's a wide console that emphasizes the horizontal, with an available 10.25-inch color touchscreen. There's simulated brushed metal and matte-finished wood, interior hooks to hang packs and bags, ceiling-mounted climate control in the second row and reclining third-row seats.

Average new-vehicle transaction price hits a whopping new peak in December

Elevated prices for products and higher borrowing rates led to record high transaction prices for new vehicles in December, with the average cost in the U.S. rising to a record $49,507, according to data from Kelley Blue Book released today. The report notes that ATPs — average transaction prices — have climbed above suggested retail prices — MSRPs — for more than a year. Sales volumes were up in December on a year-over-year basis by more than 5%, a situation Kelley attributed to improved supply. Overall sales for 2022, however, were off 8% year over year. “The transaction data from December clearly indicates overall prices showed no signs of coming down as we headed into year-end,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “Luxury prices fell slightly in December, but non-luxury transaction prices were up. Truck sales were particularly strong last month, and with many trucks selling for more than $60,000, a new record was all but inevitable.” Industry analysts claim the most obvious headwinds in the new car market are generated by higher interest rates, forced by the Federal Reserve's rate hikes intended to tame inflation, and by generally limited inventory. A recent report from J.D. Power showed that the average monthly payment for a new vehicle loan in December was $718, up $47 from a year ago. But 16% of consumers in December took out loans with monthly payments of over $1,000. Consumers think vehicles, and electric vehicles especially, are way too expensive. Fortunately, manufacturersÂ’ incentives, all but extinct in the past two years, are returning, especially in the electric-vehicle and luxury market, the Kelley data suggest. Plus, "With the new tax credits on the way, electric vehicle ATPs will drop lower for qualifying vehicles,” Rydzewski said. Non-luxury brands, such as Honda and Kia, showed particularly strong performance in December, with the average price paid at $45,578 — a record high and an increase of $994 month over month. Meanwhile, the average luxury buyer paid $66,660 for a new vehicle last month. Mercedes-Benz and Land Rover showed the most price strength in the luxury market, transacting between 2.6% to 6.5% over sticker price. But luxury brands Audi, BMW, Infiniti, Lexus, Lincoln, and Volvo showed the least price strength with some discounting in effect, selling 1% or more below MSRP in December, according to the survey.

2017 Kia Cadenza is a redesigned head scratcher

The second-generation Kia Cadenza has unexpectedly bowed at the 2016 New York Auto Show, and we're left wondering how this thing even survived to get a second generation. The Cadenza has been on sale since 2013 and it's never sold over 10,000 units in one year. Even if you combine US and Canadian sales, Kia's best year for the Cadenza was 2014, where it sold just 9,427 cars. So, what's Kia done to the second-gen car to improve on that disappointing stat? Perhaps the biggest change is the platform the Cadenza rides on. It's lighter and stiffer, which means it's probably going to be a far better dancer than the boat-like first-gen model. Cutting the weight also allowed Kia's engineers to fit more sound deadening, which alongside a sound-absorbing laminated windshield and front windows will likely lead to a quieter ride. Better handling and a quieter ride? Okay Kia, we're paying attention. The Cadenza's 3.3-liter V6 still sits under hood, but it's paired to an eight-speed automatic for the first time. That, alongside a new tune for the engine, should improve on the current Cadenza's 19-mile-per-gallon city and 28-mpg highway stats. Kia hasn't released an estimate of how much of an improvement it will be, but we suspect it'll be modest. Frankly, we're still a bit confused about why Kia is carrying on with the Cadenza. Its rivals sell in far higher volumes – in 2015, the Nissan Maxima sold over 40,000 units, the Buick LaCrosse did 42,000, and the Toyota Avalon did 60,000 – and two of those cars, the Maxima and LaCrosse, have just been fully and completely reworked. Then take into account America's increasing disdain for sedans/infatuation with crossovers, and Kia pushing through the second-gen Cadenza is just a puzzling move. Still, the visual updates, platform improvements, and powertrain changes are positive – will that be enough to turn around the Cadenza's struggling sales? We have no idea, but things can't get much worse.