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Korean customers' dissatisfaction intensified after news that Kia Motors' Cee'd sedan was ranked top by French car magazine, L'automobile reached Korea on Thursday.
The Cee'd was strategically produced to target the European market. Since its launch at the end of 2006, a total of 289,524 cars have been sold as of Dec. 2008, including 123,091 in 2007 and 163,325 in 2008. In the quality evaluation by L'automobile, the Cee'd edged out the Honda Civic and Audi A3 to claim the top rank. Some say it is better than its equivalent Hyundai model, the i30, in both design and performance.
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Kia Motors' Cee'd /Courtesy of Hyundai Kia Automotive Group
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However, the Cee'd is a somewhat unrealistic prospect for Korean customers for various reasons. Hyundai and Kia Motors' official explanation is that the Cee'd is not suitable for driving conditions in Korea, as it was specifically made to suit the preferences of European customers. The car is produced exclusively in the European plant and its price will rise over 20 percent when it is imported to Korea due to the currency exchange rate and import tax.
There is another more important reason. According to the management-union agreement of Hyundai and Kia Motors, importing cars produced overseas should be done with union consent. Importing such cars to Korea would cause production cuts in domestic plants. Therefore, earning the union’s consent is virtually impossible. Kia Motors is not in a position to make decisions independently from its holding company, Hyundai Motor. The Cee'd might adversely affect the sales of Hyundai's i30.
"Technically, the Cee'd can be manufactured in Korea. However, as far as I know, the production is impossible due to reasons other than technological issues," said an automobile industry insider. Hyundai's compact car, the i10, which is produced in the Indian plant and is extremely popular in the local market, is not sold in Korea for similar reasons.
(englishnews@chosun.com )
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