A
winner is emerging in the shifting minivan market, and it's not the company you
might expect.
Over
the last 20 years, the U.S. minivan has taken a back seat to the SUV. The main
attributes that have set the minivan back, compared to the SUV, have been these
two:
- The minivan looks as square and plain as a rectangular bread-box.
- The driver's seating position and instrument panel are more bus-like than car-like.
For
these reasons, the American public turned against these attributes and instead
embraced the SUV. The number of minivans sold fell, as companies such as
Ford (F), General Motors (GM) and Volkswagen exited the field. Nissan
has all but exited the U.S. minivan market as well, as has Mazda.
The
remaining players are Dodge/Chrysler, Honda, Toyota (TM) and Kia, serving a smaller market than the
one in the early 1990s, but still a sizable and healthy market segment,
especially with fewer competitors around. (Chrysler, Honda and Toyota minivan
sales, which represent the bulk of the market, are all way down from the
1990s.) When we dig into the U.S. sales statistics for May 2015, however, a
major outlier emerges. For the month of May 2015, Kia Sedona's unit sales were up
456% and for the year-to-date, sales were up 423%.
Kia is now in fourth place,
having sold about 15,000 Sedonas year-to-date as of May, up from under 3,000 a
year ago. The top three sellers in the market currently are Chrysler (30,680)
plus Dodge (29,364), Toyota (58,473), and Honda (51,051).
In a
market that's generally seeing 2% to 6% annual growth, it should be obvious
that Kia's minivan sales
momentum is in a different universe than the rest of the auto market. So what
explains Kia's
market-leading minivan sales success?
In the
fourth quarter of 2014, Kia started selling
an all-new Sedona minivan. It deals with the two issues listed above: Exterior
design, and the driver's bus-like experience.
Kia's new design
director, Peter Schreyer, came from Audi where he penned the iconic Audi TT. At
Kia, one of his missions was
to transform the ultra-boring soccer mom's rectangular bread box into something
that would cause people to take notice.
That
was mission impossible, but he succeeded. If you have not seen the all-new 2015
Kia Sedona minivan yet, you should take a look. From any angle, it looks far
more elegant, sculpted and athletic than any other minivan that preceded it --
at least since the original Volkswagen minibus from the 1960s and 1970s. It
looks as elegant as the best SUV. This is likely a key reason behind the sales
numbers being up 423% or more.
Open up
the driver's door and you are greeted to an interior unlike any minivan to
date. The dashboard has a horizontal design with contrasting colors. It reminds
you of an Audi A8 from a generation or two ago. (That's meant as a major
compliment.)
Continuing
the Audi A8 theme, the Kia
Sedona breaks with minivan tradition to add a decidedly car-like center
console. This completely rids the Sedona of any bus or minivan feeling. No, you
can no longer get up and walk back between the front seats, but Kia's research suggested people
never do that anyway. If they need to go back there, they stop and go through
the sliding side doors.
Completing
the Sedona's engineering trifecta, the seating position is just like in any
other premium car. It does not feel bus or minivan-like at all.
The
ergonomics are perfect. The Sedona is on par with the best cars and trucks when
it comes to ease of use. There is no confusion about buttons, labels or knobs.
It all just works without having to consult the manual or a salesperson.
Behind
the driver's seat, the only major innovation of great interest is the top
trim's ($41,000 and up models) airplane first class-like seats. They move into
the car's center, lean back and combine with an extensible foot rest to make
for a sort of moving dentist's chair and unlike anything in the industry.
That
said, these luxurious seats aren't ideal. The one behind the driver will see
foot room compromised for someone who is of average height, when the
"dentist chair" position is assumed. At least on the passenger side,
you can move the front seat forward enough to make room in the back for a
sleeping six-footer -- assuming nobody tall is sitting up front.
The
lesser trim models -- going all the way down to $27,000 -- have a more
traditional second row, which folds forward unlike the $41,000-and-up model's
dentist chairs. As much as the dentist chairs are an impressive "party
trick" I would probably buy the SX model, which goes for little over
$37,000 and up.
Fuel
economy is not all that impressive, with city mileage at 17-to-18 miles per
gallon, and highway MPG at 22-to-25 MPG, depending on trim levels. My
experience was consistent with those numbers. Clearly, this car needs a diesel
(call Volkswagen) paired with a direct-shift-gearbox (call Volkswagen again) or
a plug-in hybrid version (call the Chevrolet Volt team).
The
"drive feel" is pleasant, thanks to the excellent seating position,
but held back a little bit by the fact that the car feels very heavy. The
engine and transmission are not the best, and if you put the car on cruise
control on the freeway, you'll feel the car downshift as you hit a meaningful
incline. There is not as much torque as you'd like.
The
interior has a few irritations. There are a few shiny plastic trim pieces
around the transmission shifter, that reflect a blinding light when in some
angles to the sun. Grip the interior door handle, and you'll feel some really
cheap plastic, even though it's sturdy.
The
particular test car I had, with only 7,000 miles on it, had slippery worn-out
leather on the steering wheel, and one of the two second-row seats had broken
adjusters. That makes me wonder about the long-term quality, at least on some
superficial matters. The slippery leather on the steering wheel really bugged
me. Someone went too cheap.
There
is one other strike against the Kia Sedona, and
it's one that will likely be fixed very soon, possibly already later this year
when the 2016 model year is expected to arrive. It's the infotainment unit,
which screams for these three things that will soon be standard on every GM
car:
- 4G LTE with WiFi hotspot.
- Google's (GOOGL) Android Auto.
- Apple's (AAPL) Apple CarPlay.
Generally
speaking, you shouldn't buy any car until at least two of these three items are
included in the car you're buying. It will impact your used car value a lot.
All in
all, I give the Kia
Sedona a very high grade: Once you see it, get into it, and drive it, you may
understand why it's setting growth records in the U.S. automotive market right
now. It's taking the minivan to places where minivans have never gone before.
As with
any car in the market today, you should just wait with your purchase until the
car has been upgraded to Android Auto, Apple CarPlay and ideally also 4G LTE.
That may happen in just a few months from now, so stay patient.
Then
again, if you wait to the Summer of 2016, the market will also have a
long-overdue all-new Chrysler Town & Country, which has the potential to be
a formidable competitor.
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