2015 Kia Sorento Sx on 2040-cars

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Nuclear deal could make Iran next big car market

Iran is a huge and hugely appealing target for Western firms - it's population is nearly the size of Germany's, it is well educated and includes a substantial middle class, and there is a built-in industrial capability. Because of the sanctions that have been in place for nearly five years now over its nuclear program, however, its citizens and domestic industry haven't been able to purchase and expand, so investment opportunities are not only manifold, they are severely undervalued. Most of the auto industry has been sitting on the sidelines waiting for the Iranian game to start. A report in Automotive News says that Iran's two automakers, Iran Khodro and SAIPA - Societe Anonyme Iranienne de Production Automobile - produced one million light vehicles last year for 77.5 million people. According to Wikipedia there were 200 vehicles per 1,000 citizens in 2012, and that was before the industry took a nosedive. That number puts it between Uruguay and Jamaica. Chery, Kia, Peugeot, and Renault were the carmakers with major operations in-country before all but Chery pulled out. In the vacuum, Chery and other Chinese automakers have thrown lots of product at the market, getting 27 models in a range of segments built or supplied there, with results that are probably best described as ambivalent among observers but financially lucrative for the Chinese. Peugeot has re-established ties, and Kia, Mercedes-Benz, Peugeot, Renault, Toyota, and Volkswagen were attendees at the Iran Auto Show last November. The domestic companies say that this time they want local investment that includes technology transfer, so the Western carmakers that do decide to get in will find tougher negotiators than before. Peugeot, for instance, had a 51-49 partnership with Iran Khodro before pulling out; the new agreement is a 50-50 venture. As a 'gift' to the world for a final deal that encourages global investment, Bloomberg says that the price of crude would go down by $15 per barrel. News Source: Automotive News - sub. req.Image Credit: Atta Kenare/AFP/Getty Images Earnings/Financials Government/Legal Kia Peugeot Renault iran sanctions khodro

Kia dealer: Soul EV nothing but a political statement

It looks like Kia of Vancouver didn't get the company memo. While the South Korean company is expanding the sales area for the Soul electric vehicle, management at a Kia dealer in British Columbia's biggest city isn't convinced of the EV's earth-saving and potentially dollar-saving attributes, according to Inside EVs. Managers spelled out their reasoning in a series of alleged e-mails to a prospective customer, and you have to admire their conviction. One of Kia of Vancouver's managers referred to the Soul EV as a "social/political statement," and spelled out his opinion that the model won't help the environment because of what he says is the extra carbon cost to produce an electric battery (a long-debated subject). A second manager from the dealership took a slightly more conciliatory tone but still questioned whether the extra new-vehicle cost would allow for the prospective driver to save money while calling gas-powered cars "more reliable," according to Inside EVs. The automaker isn't happy. "Kia Canada disagrees with the statements made and is in the process of addressing this matter," Kia Canada spokesman Jack Sulymka told AutoblogGreen. The Soul EV just won the first-ever Canadian Green Car of the Year Award, beating out the Honda Fit, Subaru Legacy and Toyota Camry Hybrid in the process. Related Videos: Featured Gallery 2015 Kia Soul EV: Quick Spin View 37 Photos News Source: Inside EVs via Green Car ReportsImage Credit: Drew Phillips Photography Green Kia Electric kia soul ev

Hyundai, Kia ratchet up fleet sales as retail transactions slide

Automotive News reports both Hyundai and Kia have stepped up fleet sales in an attempt to offset disappointing first quarter results. The Korean automakers saw their sales decline by nine percent compared to last year, while all major competitors managed to increase their sales. That situation marks an inversion of two years ago, when both gained ground after Japanese rivals suffered production and inventory shortages after the country's earthquake and tsunami tragedies.
Now, Hyundai can't come up with enough volume models in popular trim configurations to satisfy buyers, and lower-volume models are also in a snag. At the moment, Hyundai can only build 20-30 percent of Veloster hatchbacks with turbocharged engines while the US market would apparently support closer to 70 percent.
In order to reverse the sales slide, Hyundai and Kia have stepped up fleet sales of the vehicles they do have by some 50 percent, ringing up a total of 42,400 units in the first quarter. By contrast, Automotive News reports the seven largest automakers increased retail volume by seven percent and fleet sales by four percent as a group.