Article published August 21, 2007
LUCAS COUNTY VEHICLE MARKET
Kia sales pass Jeep on icon's own turf
Mike Andrush of Perrysburg stops at the Kia dealership on Central Avenue to look at the South Korean imports.
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THE BLADE/LORI KING
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By MARK REITER BLADE BUSINESS WRITER
Jeep may be the signature vehicle of Toledo, but among Lucas County residents, it's losing ground to autos made by a South Korean manufacturer.
Kia, which built its reputation on low prices, has surpassed the Toledo-born Jeep brand in the number of new vehicles registered in the county, according to records obtained from the Lucas County Auto Title Bureau.
Kia registrations jumped 20 percent to 2,203 for the year ending July 31, the first time the Asian company has outpaced the iconic Jeep brand in its home county.
The number of new Jeeps registered increased less than a percentage point to 1,764 during the same period.
Interior space and fuel efficiency were among the factors that played into Melissa Mason's decision to buy a 2007 Kia Rio last week from Taylor Kia on West Central Avenue in Sylvania Township.
"I fell in love with the car after I drove it," said Ms. Mason, of Toledo."Space was the big thing," she said. "It is not a huge car, but there is still so much room."
The four-door black Rio, which has a fuel mileage rating of 29 in the city and 38 on the highway, replaced a 1998 Chrysler Sebring for Ms. Mason, who said monthly payments on the new car were within her budget.
Kia, which is owned by Hyundai Motor Co., offers a lineup of models ranging from full-size sedans and crossovers to small sport utility vehicles and minivans. It sells the imports for thousands of dollars less than similar vehicles made by Japanese and U.S. automakers.
The Rio, a subcompact starting at $11,395, is the most popular vehicle sold at the dealership, said John Sparagowski, a sales associate at Taylor Kia, which ranks number four in the nation among Kia dealerships for sales volume.
Of the nearly 22,700 new vehicles registered in the county between Aug. 1, 2006, and the end of July, Ford ranked first with 3,810 cars and trucks. Honda was second with 3,004 vehicles.
The most popular General Motors brand was Chevrolet, with 2,158. County officials count Chevrolet, Pontiac, Saturn, and other GM brands separately. If they were combined, GM vehicles would be most popular with more than 4,800 sold.
David Cole, chairman of the Center for Automotive Research in Ann Arbor, said Kia's expanding market position results from the company's array of products, price, and fuel economy.
"Kia is really at the low end in terms of prices," he said. "Their vehicles are really in demand this year because of the fuel economy that their small vehicles get."
Although the Korean vehicles may be selling well, Dave Doster, sales manager for Yark Automotive Group in Sylvania Township, said they lack the prestige, durability, reliability, and terrain capability of Jeep products. The Jeep line includes the Toledo-built Liberty and Wrangler.
In the battle of warranties, Chrysler last month began offering lifetime repairs for the key components of cars and trucks sold in the United States. The warranty, which applies to most vehicles, including the Jeep, replaces a three-year, 36,000-mile program. Kia offers 10 years or 100,000 miles on the powertrain.
Greg Starkey, general manager for Ed Schmidt Auto Group, which includes Jeep vehicles, said Korean imports like Hyundai and Kia may be appealing for fuel efficiency and price, but a certain segment of the market will always be attracted to domestic cars and trucks.
"Buyers are considering factors other than price," he said.
Erich Merkle, vice president of forecasting for the auto consulting company IRN Inc. in Grand Rapids, Mich., isn't surprised that more Kias than Jeeps are registered in Lucas County.
"Kia has a broader selection of vehicles that covers a wider array than Jeep," he said. "The depth of their product line is much larger than Jeep. Jeep is pretty much limited to the SUV market."
Contact Mark Reiter at: markreiter@theblade.com or 419-724-6096.
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