I find
it fascinating how Korean companies Kia
and Hyundai have become
synonymous with both value and quality, and how these companies have raised
themselves from a “sub-par status” to a genuine contender in today’s market.
Once considered a cheap alternative to buying Japanese, these two firms have invested
insane amounts of capitol in the American market since the mid-1990s. They also
have spent large sums on developing their own brand identities, creating their
own high-tech R&D departments, and purchasing legitimate materials that
rival those found on vehicles costing twice as much. So how is it that these
Korean companies have gone from worst to first?
Kia’s history started with bicycle
manufacturing in the early 1950s, and by the 1970s the company had shifted to
the manufacturing of motorcycles, cars, and trucks. It later partnered with
Ford in the 1980s to make versions of Ford/Mazda collaboration cars, and by
1994 Kia had outgrown its
humble roots and began selling the Sephia and the Sportage in America. But the
Asian financial crisis forced Kia to file for bankruptcy, at which point Hyundai took over the company
and to this day remains majority stakeholder. Over the next decade Kia grew slowly but steadily and
became a genuine contender as it fixed its earlier miscues, opened a U.S.
corporate headquarters and design center, and solidified its dedication to the
American market in 2010 with the opening of its Georgia manufacturing plant.
Hyundai’s
history draws some interesting parallels to Kia’s, as it also began not
with cars (it began with engineering and construction), and it has also had
dealings with Ford in the production of vehicles. After developing its own
technologies for the Sonata in 1988 and its own engine and transmission line in
the early 1990s, Hyundai
began to invest heavily in the quality, design, manufacturing, and long-term
research of its vehicles in order to raise its status and value in the American
market. It added a 10-year/100,000-mile warranty to all of its cars and
launched an aggressive marketing campaign, and in 2006 Hyundai hired former BMW
designer Thomas Bürkle as head of the company’s design department. The
automaker has opted to show a devout dedication to the American market by
stationing its North American headquarters in Michigan, and an assembly plant
in Alabama.
It
hasn’t always been smooth sailing for these Korean car makers, and back in the
1980s and 1990s many Americans avoided these “Japanese wannabes” for fear of
poor craftsmanship and public ridicule. These fears were rightly founded, as
early models from either maker was typically appalling on every level. But
after equally rocky starts, and incessant criticism from both critics and
consumers alike, these Korean firms began to gather some steam in the American
marketplace and are now giving companies like Honda, Toyota, and BMW genuine
cause for concern as the world realizes that it is OK to buy Korean.
1. Good
value
What
started out as just a cheap Korean economy car has blossomed into quite the
value-packed product, as both Hyundai
and Kia continue
to offer more for less. Features that were often reserved for high-end luxury
makers like Lexus and BMW can now be found on many models, and it is not
uncommon to run across amenities like genuine Napa leather interior, heated
rear seats, automatic high-beam assistance, and ventilated front seats. All of
these features come at a fraction of the cost of their Japanese and European
competition with cars like the Sonata ranking third on U.S. News’ list of “Best
Midsize Cars For The Money.” And while the Sonata was bested by the 2015 Honda
Accord Hybrid and 2015 Toyota Camry, it rolls in at thousands of dollars less
than either of these two, further enforcing the fact that it has excellent
value for the money.
2.
Amazing warranties
Sick of
people calling its products crap, Hyundai rolled-out an industry
first 10-year/100,000-mile warranty in 1998, with Kia shortly following suit.
Labeled as “America’s Best Warranty,” this warranty covers the powertrain, a
5-year/60,000 mile bumper-to-bumper coverage, 5-year/unlimited mileage roadside
assistance, seven years of rust protection, and even carries a lifetime hybrid
battery warranty. Hyundai saw an 82% sales jump the year after the program was
put in place, and while Kia’s powertrain and new vehicle warranties are the
same as Hyundai’s, it’s roadside assistance is limited to 60,000 miles, and its
rust coverage is two years less than its Korean counterpart’s.
3.
Turbocharged and hybrid-powered
Kia and Hyundai were quick to hop on
the hybrid bandwagon a few years back, and with the aforementioned lifetime
battery warranty and favorable reviews, it is no wonder that the hybrid
versions of these cars are selling well. The hybrid versions of the Optima and
Sonata are no slouches either, with both vehicles topping-out around the 200
horsepower mark. But some of us don’t give a hoot about fuel efficiency, and
just want some uncompromising power. Korean auto makers were tapping into this
trend way before most, so while auto makers are scrambling to put turbos on
their engines to increase powerbands, Kia and Hyundai have already been
established as turbo specialists.
4. Cute
and quirky
Kia and Hyundai have something for
those of us who aren’t into turbos and hybrids, and surprisingly it is still
fun and fuel-efficient. With budget-minded Generation Z buyers demanding tech-savvy, compact economy
cars, it is no wonder that cars like the Veloster and Soul are proving to be
popular with today’s car buyer. These cars are affordable, adorable, and
completely quirky in their own technology-laden little ways.
5.
Individualistic options abound
Tired
of blending in and looking like everyone else on the block? Korean car
companies have been listening to Americans gripe about this for decades, so
they have rolled-out tons of customizable options as well as luxury vehicles
like the Equus and performance machines like the Genesis R-Spec. The latter of
these two features a fire-breathing 3.8-liter V6 that churns-out 348 horses
(besting a comparable Mustang) and is available with Brembo brakes, a Torsen
limited-slip differential, and comes standard in rear-wheel-drive. On the
opposite end of the spectrum is the 429 horsepower Hyundai Equus, which offers
more interior room, horsepower, and amenities than its competition, all at a
fraction of the price.
6.
Sharp styling
Once
considered a hideous laughingstock of the automotive community, modern Korean
cars are actually becoming quite sharp looking. From the use of LED
illumination, to redesigned lines and interior cues, all the way to performance
aero kits, recent models from both manufacturers are truly a step above
previous generations. A dozen years ago no one was ogling a Korean car save for
the sticker price on its windshield, nowadays fully-furnished models are cause
for statements like, “There’s no way that’s a Kia.”
7.
Improved quality
Long
gone are the days when people complained about inferior Korean quality. These
cars are made in America, offer fantastic value for the money, and every year
land tons of awards for their overall quality. This shift all started back in
2004, when Hyundai shocked everyone when it tied with Honda for initial brand
quality in a study by J.D. Power and Associates. It then placed third overall
in J.D. Power’s 2006 Initial Quality Survey, trailing only Porsche and Lexus.
Meanwhile Kia
has been busy cleaning-up as well, winning awards recently for its safety,
design, and ingenuity.
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