[Q&A] Details of Kia Stinger’s sales target, rivals, global launch

[lostnspace]

[Q&A] Details of Kia Stinger’s sales target, rivals, global launch

http://m.theinvestor.co.kr/view.php?ud=20170523000911

PUBLISHED : May 23, 2017 - 16:44

UPDATED : May 23, 2017 - 16:45

• THE INVESTOR] Kia Motors, the nation’s No. 2 carmaker, on May 23 started selling its first premium sports sedan Stinger in Korea, setting the sale target at 8,000 units this year.
  
  “We plan to sell 8,000 units of Stinger in Korea this year,” Kia Muotors Vice President Kim Chang-sik told reporters at a press event held in Seoul. “From 2018, we hope to sell 1,000 units every month.”
  
  
  
  
  
  
  
  
  
  
  The coupe-like-sedan earned rave reviews from foreign media when it was first released at this year’s Detroit Auto Show -- followed by its Asian debut at the Seoul Motor Show in March -- for its high performance along with dramatic design changes.
  
  With the sales pitch, the carmaker has pinned high hopes on its fastback Stinger to bolster Kia’s global image, while reviving sales in the domestic and overseas markets.
  
  “Following the Korean launch, Kia plans to start selling the cars in the US and Europe in the second half of this year,” Seo Bo-won, Kia’s domestic marketing director, told The Investor after the press event.
  
  The rear-wheel drive Stinger comes with three engine types -- a 2.0-liter turbo, a 3.3-liter twin-turbo and a 2.2-liter diesel engine. The price starts at 35 million won (US$31,133) and goes up to 48.8 million won depending on the engine and added features.
  
  Below are key questions on the new car and answers by Kia executives at the press conference.
  
  Q: Who are the target customers?
  
  A: Young professional males in their 30s and 40s who have their own style and aim for adventure.
  
  Q: Which are the rival car models in the market?
  
  A: BMW 4 Series Grand Coupe and Audi A5. In overseas markets, we are targeting the near-luxury segment.
  
  Q: What are key characteristics of the 3.3-liter twin turbo engine – the first high-performance engine fitted in a Kia car?
  
  A: The 370-horsepower engine can accelerate from zero to 100 kilometers per hour in 4.9 seconds, the fastest among Kia cars. We plan to feature the engine in the upcoming new K9 as well as other luxury models.
  
  Q: When is the global launch?
  
  A: The car will hit the US and European markets in the second half of this year. We plan to launch the car in other markets in phases next year.
  
  Q: Does Kia have any plans to have a separate brand name for high-end models like Hyundai’s Genesis?
  
  A: No. But we will pour more resources into launching more premium cars.
  
  By Ahn Sung-mi (sahn@heraldcorp.com)
  

 

[Bamm1]

I remember a base price of $27,000 being tossed around for the KDM. This article bumps that up by ~4 grand.

Translating those prices to USD (and making the assumption that AWD [HTRAC] will be priced similarly to the Genesis models*) we get:

• RWD Base: $31,133
• AWD Base: $33,633

• “loaded” RWD GT: $43,325
• “loaded” AWD GT: $45,825

That is Acura TLX pricing and in my opinion the ideal pricing** strategy for Kia. Acura is already trying to be the "value brand" in the luxury segment.

• 2018 Acura TLX Base $33,000
• 2018 Acura TLX 3.5L SH-AWD with Advance Package $45,750

While I am at it I would also like to see the AWD Stinger GT's fuel economy in the "ballpark" of the TLX 3.5L SH-AWD A-Spec as well (20 / 29 / 23).


* $2500 - HTRAC plus heated steering wheel. On current Kia models that offer AWD the option is $1500-$1800.
** My gut is telling me to add a few more grand to those prices but I am going ideal state for this post.

 

[lostnspace]

A "loaded" 2017 Acura TLX 3.5L SH-AWD with Advance Package is $48,874; my gut is telling me the Stinger is going to be right at this price of the TLX. This could get interesting for ACURA since the TLX isn't exactly flying off the showroom floors.

 

[Bamm1]

A "loaded" 2017 Acura TLX 3.5L SH-AWD with Advance Package is $48,874; my gut is telling me the Stinger is going to be right at this price of the TLX. This could get interesting for ACURA since the TLX isn't exactly flying off the showroom floors.

The pricing I listed came from Acura's press release:

http://www.acura.com/news-and-press/press-release-detail?article=9673-en

I excluded destination from the pricing I listed so just add another $950 to each price. Acura tends to bundle everything into giant packages, similar to what Kia does. Kind of an all or nothing proposition. So the Advance model should include every upgrade. Maybe there are "accessories" (different wheels, cargo nets, floor mats, etc.) included in the price you have?

 

[unintelligible]

I'm not sure how useful currency conversion is in trying to predict US pricing from KDM pricing - if you look at the K900 it's actually significantly more expensive in Korea compared to what the US version costs if converted to Won. Product positioning and a number of other factors can swing the pricing far in either direction.

I don't think it's an accident that Peter Schreyer and Albert Biermann have been on stage mingling with automotive journalists and gave the same answer independently when asked about estimated US pricing: "fully loaded under 50k." $49,990 + destination for a fully loaded GT AWD is what I am expecting and is very market competitive.

 

[Bamm1]

I'm not sure how useful currency conversion is in trying to predict US pricing from KDM pricing - if you look at the K900 it's actually significantly more expensive in Korea compared to what the US version costs if converted to Won. Product positioning and a number of other factors can swing the pricing far in either direction.

I don't think it's an accident that Peter Schreyer and Albert Biermann have been on stage mingling with automotive journalists and gave the same answer independently when asked about estimated US pricing: "fully loaded under 50k." $49,990 + destination for a fully loaded GT AWD is what I am expecting and is very market competitive.

The prices listed in the above article don't match other pricing information released previously for the KDM. These price estimates struck me as I had just looked at the Acura TLX pricing information and they matched so closely.

I don't think the loaded Stinger GT will come in over the starting price of the K900 in the US. So I think it will be $49,900 or less.

I still stand by my notion that competing with Acura on price is a smart move for the first "near lux" car Kia brings to market. I don't think it will happen but it doesn't mean it would not have been a good strategy.

 

[lostnspace]

The pricing I listed came from Acura's press release:

http://www.acura.com/news-and-press/press-release-detail?article=9673-en

I excluded destination from the pricing I listed so just add another $950 to each price. Acura tends to bundle everything into giant packages, similar to what Kia does. Kind of an all or nothing proposition. So the Advance model should include every upgrade. Maybe there are "accessories" (different wheels, cargo nets, floor mats, etc.) included in the price you have?

I did the 2017 TLX since I am not aware of all of the prices/package for the 2018 TLX. This is from the TLX configurator.

My 2017 TLX Build

APPEARANCE
EDIT

• Fathom Blue Pearl Exterior Color$0
• Ebony Interior Color$0
• 19-in Berlina Black Wheels with Tires$3,024

POWERTRAIN
EDIT

• Super Handling All-Wheel Drive™$2,200
• 290-hp 3.5L V-6 9-Spd Automatic$3,450

PACKAGES
EDIT

• Advance Package$3,200
• Technology Package$4,050

ACCESSORIES
EDIT

• No accessories currently selected

• Subtotal$47,924
• Destination Charge*$950

Total as Configured
$48,874*

@Bamm1 and @unintelligible I agree on the price point for a "loaded" Stinger, $49,X00.00 seems to be the likely price.

 

[Bamm1]

I did the 2017 TLX since I am not aware of all of the prices/package for the 2018 TLX. This is from the TLX configurator.
EDIT

• Fathom Blue Pearl Exterior Color$0
• Ebony Interior Color$0
• 19-in Berlina Black Wheels with Tires$3,024

POWERTRAIN
EDIT

• Super Handling All-Wheel Drive™$2,200
• 290-hp 3.5L V-6 9-Spd Automatic$3,450

PACKAGES
EDIT

• Advance Package$3,200
• Technology Package$4,050

ACCESSORIES
EDIT

• No accessories currently selected

• Subtotal$47,924
• Destination Charge*$950

Total as Configured
$48,874*

@Bamm1 and @unintelligible I agree on the price point for a "loaded" Stinger, $49,X00.00 seems to be the likely price.

I would personally exclude the three thousand dollar wheels/tires from my pricing comparison as they fall in the "accessory" category.

 

[lostnspace]

I would personally exclude the three thousand dollar wheels/tires from my pricing comparison as they fall in the "accessory" category.

Ahh! That makes since. I was building a car as close as possible to a 2018 A-Spec TLX and the Stinger. I am not fan of the regular rims on the TLX lol. Taking off $3K but leaving in destination, that puts the price of a loaded 2017 TLX at $45,800.

 

[Bamm1]

Ahh! That makes since. I was building a car as close as possible to a 2018 A-Spec TLX and the Stinger. I am not fan of the regular rims on the TLX lol. Taking off $3K but leaving in destination, that puts the price of a loaded 2017 TLX at $45,800.

I don't think this will happen but that is where Kia would have to target ($46,000-$47,000) to be the value leader in the lux category, at least in the US.

 

[lostnspace]

I don't think this will happen but that is where Kia would have to target ($46,000-$47,000) to be the value leader in the lux category, at least in the US.

Yea I think that's a little low...I think Kia will likely "match" Acura in this segment...but on paper the Stinger has more to offer. So Acura has to be rethink their strategy is the numbers are what we think they will be.

*prays the ride on the Stinger is superb*