Kia Cerato 2011 News

Kia is looking to get back into the hot hatch business after pulling the unloved Proceed GT out of the local market last year.

Kia's announcement of an Australian-first seven-year, unlimited kilometre warranty could benefit buyers of others brands as they try to match it.One of Australia's fastest growing car brands, Korean company Kia, is about to upset its big name rivals by announcing a seven-year unlimited kilometre warranty, the longest in Australian automotive history. Kia’s sister brand Hyundai was the first company to offer a five-year, 130,000km warranty in Australia 15 years ago -- in 1999 -- as a response to quality concerns over a bungled safety recall the year before.Hyundai then increased its warranty coverage to five years and unlimited kilometres in 2006.RELATED: Small car price war about to heat upFrench car maker Citroen then raised the bar in March this year, offering new-car buyers an unprecedented six-year, unlimited kilometre warranty.Kia's new benchmark of a seven year, unlimited kilometre warranty will put the market leaders under increasing pressure given brands such as Toyota, Holden, Ford, Mazda, Nissan, Volkswagen, Subaru, Honda, Audi, BMW and Mercedes-Benz only offer three years coverage. It means buyers of most mainstream brands will eventually be the winners as they try to raise their level of warranty coverage to either match or get closer to Kia's seven-year stretch. But none are yet to react.The longer warranty period will likely boost the resale value of Kia cars at trade-in time because used-car buyers will get the balance of the new-car warranty.Most new cars are sold after four years, according to industry figures. This means a typical secondhand Kia would give used car buyers three years of factory-backed protection against faults.The Kia warranty is part of the company's ambitious sales push in Australia after a decade of weak results.Kia is just outside the top 10 sellers but its sister brand Hyundai -- which sells, in effect, the same cars under the skin but with different body styles and different branding -- is in the top four.It is the largest gap between the two jointly owned companies in the world.Kia recently poached Hyundai Australia's sales and marketing boss Damien Meredith to head the Kia division locally and this is his first step towards doubling sales within four years."This is a watershed moment," said Mr Meredith. "Kia customers now have a peace of mind that can't be matched in the Australian new car market."The deal includes free roadside assistance for seven years -- if the car is serviced at a Kia dealer once a year.Kia has also extended its capped price servicing program to seven years -- one of the longest in the car business -- and that prices of routine maintenance will remain the same as before."The two year increase in warranty, capped-price servicing and roadside assist is absolutely transparent and we will not be asking our customers to dip into their pockets to fund the extra benefits," said Mr Meredith.

Hyundai invented drive-away pricing in Australia and today it's bigger than ever. The Korean company knew it needed something special to get shoppers to sign on the dotted line back in the mid-1990s, and that something was a $990 bottom line across its models with an all-in selling price that removed the fear and uncertainty from buying a new car.Driveaway dealing started as showroom bait for the baby Excel and a new generation of first-time shoppers looking for a bargain at $13,990, in an inspired move by firebrand Hyundai executive Simon Pinnock, and has spread like a virus throughout the Australian motoring landscape since then.Lots of companies now use a driveaway deal to clear their superseded stocks, or re-ignite interest in a fading favourite, or just put some punch into their showroom push. It works, and it usually works well.Right now, Kia is heavily into driveaway dealing as its shifts from 2013 to 2014 models and is even applying the all-in effort - which can save up to $2000 in on-road costs and dealer delivery at a non-luxury brand - to its new-year arrivals. You can get a Rio manual hatch for $15,990 driveaway, compared with a recommended retail sticker at $16,290 before on-roads, and the latest deals even run up to the Carnival people mover and top-end Sorento SUV.Over at Hyundai there is a similar push, not just because of the competition from Kia but because Korea's biggest carmaker intends to be a top-three success in Australia within five years. It knows that driveaway dealing gets people into showrooms and starts its efforts at the very bottom - the i20 is now $13,990 on the road - to try and create loyal buyers who gradually move up through the range.Hyundai and Kia could be accused of racing to the bottom on the price line, but Nissan is doing even sharper deals at $18,990 on-the-road as it looks to turn its all-new Pulsar models into the biggest showroom success of the year. The cars are already locked and loaded, and being rolled onto ships in Japan every month, with the driveaway deals in Australia planned to ensure they go straight to homes without spending any wasted time parked in a dealership.We're also seeing deals with the 'drive away, no more to pay' kicker line being pushed by everyone from Holden and Ford to Subaru and Toyota, even if they are short-lived or wrapped in a different package. But that's not the end of the dollar deals, as cheap finance - down to zero at some brands - is making a bigger impact.Finance deals are partly about winning customers, but also to do it in a way that does not influence the vital resale value on a car. That's because the second hand price is determined by the 'transaction price' - the dollar number as the car is actually retailed, not the showroom sticker - and that can be badly affected by heavy discounting and even driveaway pricing. Price: from $13,990 driveawayEngine: 1.4L four-cylinder, 73.5kW/136NmTransmission: 6-speed manual or 4 speed auto, FWDThirst: 5.3L/100km   Price: from $18,990 driveawayEngine: 1.8L four-cylinder, 110kW/178NmTransmission: 6-speed manual/auto, FWDThirst: 6.6L/100km   Price: from $18,990 driveawayEngine: 1.8L four-cylinder, 96kW/174NmTransmission: 6-speed manual/CVT auto, FWDThirst: 6.7L/100km   

Kia has introduced a new five-door hatch version of its impressive Cerato small car, joining the existing sedan bodystyle four months after its local arrival.The third-generation Cerato hatch replaces the TD generation hatch that has continued to be available alongside the new YD Cerato sedan, and matches the sedan on pricing and most specifications.Australia is the first market outside Korea to receive the new hatch, and Kia expects the new hatch to make up 70 per cent of Cerato sales. The existing Cerato offerings rank 12th in the highly competitive sub-$40,000 small car segment for sales year to date (until July 31), with 3382 sales, trailing the segment-leading Toyota Corolla and Mazda3 by over 20,000 units over the same period.The wheelbase of the new Cerato hatch matches the sedan’s 50mm longer 2700mm measurement, improving rear seat legroom by a similar margin. Overall length is 210mm less than the sedan due to a shorter rear overhang, which also sees seats-up cargo capacity drop by 97 litres to 385L (VDA), but all models are fitted with a full-size spare wheel.Like the sedan, the new Kia Cerato hatch is available in S, Si, and SLi grades, and kicks off at $19,990 for the S, moving up to $23,990 for the Si, and topping off with the $27,990 SLi.The S comes equipped with air conditioning, cruise control, flex-steer adjustable power steering, front and rear parking sensors, six-speaker audio with Bluetooth audio and telephone. The Si adds a premium steering wheel and gearknob, 4.3 inch colour multimedia touchscreen with reversing camera, extra chrome exterior detailing, auto headlamps, folding door mirrors with puddle lamps, proximity keys, and 16 inch alloy wheels.The top-spec SLi gains leather trim with front seat heaters and power memory driver’s seat adjustment, dual-zone climate control, power sunroof, HID headlamps, LED daytime running lamps and taillamps, auto-dimming rear view mirror, chilled glovebox, and 17 inch alloy wheels.Satellite navigation is only available as a $1000 option on the top-spec SLi models, which also results in the multimedia screen growing to seven inches. The hatch also matches the sedan’s engine lineup, with the S equipped with a 110kW/178Nm 1.8 litre petrol four, and the Si and SLi grades moving up to a 129kW/209Nm 2.0 litre direct injected petrol four.A six-speed manual is standard on all Cerato hatch models, with a six-speed auto available for a further $2000. The Cerato hatch’s combined fuel consumption figures are equal with the sedan, despite weighing 20kg more, which means 6.6l/100km (manual) and 7.1l/100km (auto) for the 1.8 litre S, and 7.4l/100km for the 2.0 Si and SLi variants with either transmission.Like the sedan, the Cerato hatch has achieved a five star ANCAP safety rating, with six-airbags, stability and traction control, and hill-start assist. The Cerato hatch comes with Kia’s five-year unlimited kilometre warranty, capped price servicing plan for the first five services, and one year roadside assistance.  The entry S grade (manual) is being offered with $19,990 driveaway pricing from launch, matching the current offer on the sedan S. However, Kia would not confirm the duration of this offer. 

Style is the new weapon in Kia's war to win back buyers from an avalanche of fresh small-car rivals. It starts with the Cerato hatch, a heavily rejigged small car with more performance options that arrives here mid-year with the aim of clawing back some average sales results. The neat Cerato sedan and hatch currently on the market have been no match for heavy hitters Corolla and Mazda3, let alone its sister Hyundai i30. Even the more expensive Subaru Impreza outsells Cerato. This time Kia reckons it's got it right. The Cerato, shown this week at the biggest US motor show in Chicago, arrives in Australia as a hatchback in July that follows the April launch of the sedan equivalent. It sits on a 50mm longer wheelbase and is lower and wider than the current hatch. Boot space is up to 422 litres, bigger than the i30 (378), Golf (350), Corolla (280) and Mazda3 (340) but less than Holden Cruze's 445 litres. Looking more like a mini-Optima at the front - indeed the Cerato sedan is almost a shrunken copy of Kia's biggest Australian-sold sedan - the hatch repeats the crisp styling and signature lines of the company's chief designer Peter Schreyer. It has all the performance looks to justify Kia's 150kW/264Nm 1.6-litre direct-injection turbo-petrol engine - only 5kW/16Nm off the bigger 2-litre engine of the Golf GTI - but we won't get it. Kia Australia has knocked back this sparkling engine in favour of retaining the current model's 103kW 1.8-litre multi-point injection engine and a perkier 129kW 2-litre direct-injection petrol four. This upgrades the current 2-litre engine's 115kW/194Nm output. The turbo-petrol engine - the same as fitted to the Hyundai Veloster Turbo - is hoped to be used here late this year as Kia Australia plans to import the Europe-sourced Procee'd GT hatch. Annoyingly, the US market has nabbed the turbo-petrol for the Cerato five-door hatch and displayed it at the Chicago motor show this week. VALUE Kia Australia is not talking money. But it's fair to say it will start around the same level - say, $19,990 - because that's where its rivals such as Corolla and Pulsar are starting. At that money, dependent on equipment levels for which Kia are renowned, it'll be a strong buy. The 2-litre engine is also bigger than the others so there's appeal from a performance base. The elephant in the room is the excellent i30 from parent company Hyundai that shares the Cerato's platform. But there's Kia's industry crunching five-year warranty and capped-price service program with roadside assistance. Strong arguments. But we have to see the car in Australia and with its sticker price to make the final call. DESIGN In the flesh it's crisp and distinctive. It's a pleasing car to look at and that'll appeal to buyers who appreciate a head turn. But it's not outrageous and not dated in its lines, so it should age well and that'll hold value. The cabin is pretty and appears workable. The car will keep its three model line-up of S, Si and SLi. Again, the proof is in what it looks like when it lands here. TECHNOLOGY The 2-litre engine's direct injection improves performance and lowers fuel consumption. Kia gets unique suspension tuning for Australia - incidentally, Hyundai do likewise but by a different mob - so the Cerato hatch should hang on through the bends. The rear suspension is by torsion beam and though not as sophisticated as the multi-link set up of Holden and Opel, is economical and allows for a bigger boot area. SAFETY No news but it's expected to be a five-star car with six airbags. It's the standard safety gear that gets fitted to the Australian cars which is unknown. A rear camera should be the minimum with lane-change monitor and even low-speed auto braking being desirable. In this sector though, it's all about price. VERDICT A very appealing package that offers good space in a relatively small car. Nice to see some power upgrades in the 2-litre which should make it a fun drive. The car isn't on the road - or even a carpark - yet. Kia Cerato hatch Price: est from $19,990 Warranty: 5 years/unlimited km, roadside assist Resale: 53% Service Interval: 12mths/15,000km, capped price Safety: 6 airbags, ABS, ESC, EBD, TC Crash rating: 5-star Engine: 1.8 and 2-litre 4-cyl turbo-diesel, 103kW and 129kW Transmission: 6 spd manual or auto; front drive Thirst: est. 7.3L/100km; 192g/km CO2 Dimensions: 4.3m (L), 1.8m (W), 1.5m (H) Weight: 1385kg Spare: Full size RIVALS Toyota Corolla Price: from $19,990 Engine: 1.8-litre, 4-cyl petrol, 103kW/173Nm Transmission: CVT; front drive Thirst: 6.6L/100km; CO2 152g/km  Toyota Corolla - see other Corolla verdicts Mazda 3 Price: from $20,330 Engine: 2-litre, 4-cyl petrol, 108kW/182Nm Transmission: 5-spd auto; front drive Thirst: 8.2L/100km; CO2 216g/km  Mazda 3 - see other Mazda 3 verdicts Holden Cruze Price: from $21,490 Engine: 1.8-litre, 4-cyl petrol, 104kW/176Nm Transmission: 6-speed auto; front drive Thirst: 7.5L/100km; CO2 179g/km Holden Cruze - see other Cruze verdicts  

But that won't happen until at least next year as Kia rolls out its new Cerato hatch and sedan and, finally, the two-door Koup. "We're pushing hard for a turbo car but we have to be patient," Kia Australia spokesman Kevin Hepworth says. The next model Koup is expected to get a direct petrol-injected 1.6-litre engine with a turbocharger. Kia's global powertrain engineer, Joachim Hahn, indicated at this year's Geneva motor show in March that the first turbo would be in a C-Class car - which is the Cerato - and that it would be announced within 12 months. "We already make a turbocharged direct-injection engine - the TGDI - and we will bring out a Kia within the next 12 months which is a European GDI turbocharged engine," Hahn says. Kia - an associate company of Hyundai - makes a turbocharged version of  the Optima for the US market and a C'eed turbo for Europe. The US also gets a turbo-petrol Sportage. The 150kW/264Nm 1.6-litre turbo-GDI engine - which features a twin-scroll turbocharger - is also in the Hyundai Veloster Turbo which is due for Australian launch in December. Hyundai claims its Veloster Turbo is able to deliver 8.7 L/100km city and 6.2 L/100km highway for manual transmission models. It is also available with a six-speed torque-converter automatic.  

An Australia-patented gas-injection system has surfaced as the reason for choking the plans of Hyundai and Kia to import their innovative LPi-Hybrid models.  This is contrary to the official line - quoted at the Kia Koup launch in Seoul early last year - that Kia was "having difficulty" adjusting to Australia's propane-rich LPG mix. Korea, and many other gas-producing nations, have LPG that is richer in butane. Technically, adjusting between the two LPG blends is a matter of engine management tuning. But Kia - and later Hyundai, which shares the LPG injection technology - indicated it was all too hard and killed plans to bring its gas-electric Cerato to Australia. But there was a more compelling argument. The LPi (liquid petroleum injection) hybrid - sold in Korea and now readying for export to countries except Australia - has components within its gas-injection system that are patented by a Melbourne engineering company. Kia last year planned to import its Cerato LPi-Hybrid sedan but mysteriously - and suddenly - developed cold feet. Its associate company, Hyundai, had a similar-engined car ready to export but froze the plan. The Australian patent holder, engineering company LPG-Liquid-Inject Ltd, says the technology being used by companies including Hyundai-Kia dates back to the mid-1990s. LPG-Liquid-Inject director John Martin says his company contacted Hyundai-Kia when news of an LPG-Hybrid car was announced.  His patents also cover the common Vialle LPG injection system used by Ford - and provided by Perth-based Orbital Corporation - which is currently in dispute over patent breaches. "We have been challenged by Vialle on our patent four times and they have failed," Mr Martin says.  "They know that our patents have 12 months to run before they expire, so they're developing a market now." But Mr Martin says carmakers aiming to capitalise when the patents expire are investing in redundant technology.  "We're within a whisker of finalising this new technology," he says. "It's cheaper, more efficient, has instant starting and automatically adjusts for different butane/propane proportions in LPG."  LPG-Liquid-Inject Ltd is also completing is own LPG-engine and electric motors hybrid, using a 650cc internal-combustion engine powering a generator to charge a composite of lead-acid and lithium-ion batteries and then driving hub motors within the wheels of a 5.5-tonne Transit van. "We can produce the system in Australia and we have an engine-maker (in Victoria) ready to build it,' Mr Martin says.  "But we can't get any government assistance. The Federal Government is only interested in big car companies and big car component suppliers who have lots of employees. "So we plan to have it built in Britain. It is bad for Australia because we want to live here. And it makes doing business in Australia look bad." In 2008, Mr Martin's company was relying on a Commercial Ready development grant of $400,000 from the Federal Government to commercialise his technology.  But the grant scheme was cancelled. In 2009 the Federal Government granted $35 million to Toyota to build its Camry Hybrid in Melbourne.  The policy manager of LPG Australia, Steve Reynolds, says Mr Martin's work represented "very good home-grown technology that we see as being important in increasing the range of LPG automotive products on the market".

While the company has launched the Sportage with a locally-tuned suspension and played with a Koup to make it handle, the Korean brand has critical vehicles coming.  Kia Australia national marketing manager Steve Watt says the next-generation Rio - due in the latter half of next year - is a critical car for the brand."I've seen the clay of Rio, it's a game-changer, the packaging is more for a small family because it is so clever, that's second half of 2011," he says.  The line-up is far from set, but Watt says the range will need to retain the brand's sharp-pricing as well as cover a broader range of body options."We're known for sharp prices - entry level we need a presence, hopefully we'll have access to different body shapes, sedan and wagon and hopefully a three-door but that's not confirmed, the greater coverage we have the better we'll do," he says.  The company will add the Cerato five-door to its line-up following a Sydney motor show debut in October.The medium sedan - still known as TF for now  but likely to use the Optima nameplate - will be unveiled at the Australian Open in Melbourne early next year, with even more suspension and steering work done by the Australian tuning team than the Sportage."The TF we have started chassis dynamics testing on that car, that determines when it goes on sale - when the work is finished.  It costs the same to put a poor as a good suspension system in the car, the trick is to get a good suspension." he says.Watt says the brand is still considering tactics like a seven-year warranty and says it has to expand its catchment of customers and agrees that the company's line-up need to be seen as "more than A to B" transport."A to B suggests being disconnected with the car, our designs now are for more engaging, you notice the car now - my view is the drive needs to match the style of the car.  We need to talk to a new market, we need to talk to people who wouldn't have considered us before," he says.

A five-door hatch has just debuted at the New York Motor Show and arrives in local showrooms in October.  It is expected to share the same engines and specifications as the sedan. Lower and firmly set on its haunches, the five-door has all the design attributes of the sedan, from the new front grille, pronounced wedge shoulder line to the alloy wheels and lower bumper design. Inside the car shares the same dashboard, but adds paddle shifters, push-button start and a navigation system. Depending on country, the five-door is available with three petrol engines, a 1.6-litre, 2.0-litre or 2.4-litre and a new six-speed manual or automatic transmission. Australian cars are expected to continue with the 2.0-litre four.  Kia Motors Australia will confirm pricing and local specifications closer to the launch. Although the Rio remains the South Korean’s strongest seller locally, adding a hatch to the Cerato lineup is expected to drive more sales in the competitive small car segment, which is dominated by hatches. Kia Motors Australia CEO MK Kim has confirmed he Cerato 5-door hatch will go on sale in Australia during the fourth quarter of 2010. "It will complete the Cerato range by joining the 4-door sedan and 2-door Koup," Kim says. "It will introduce key mechanical, feature and cosmetic changes to the Cerato range and join the Kia Soul in the important Small Hatch segment which so far this year has accounted for 51 per cent of total small vehicle sales."

Headlining Kia’s stand is a preview of the new and stylish Cerato sedan, due for release to the Australian market in early 2009. It will be the first Kia to feature the 'new face of Kia' design from the pen of Kia's global chief design officer, Peter Schreyer, who joined the company in 2006 from the Volkswagen Group. Schreyer's corporate H-grille echoes his car design philosophy. According to Schreyer, design is the number one purchase influence but it is essential that new designs match both the Kia brand value and the vision of the Kia brand. In striking electric blue at the show, straight lines are feature on the profile, following the base of the side glass from the A-pillar to the boot, while the headlights are integrated into the grille; blistered guards visually lower the car. The new model will bridge the gap between small and medium cars with space, performance, features and value. Longer and wider than the current Cerato sedan, the new model is actually roomier than the first generation Toyota Camry. New Cerato will feature a new, efficient 2.0-litre engine with Continuously Variable Valve Timing (CVVT) for class-leading power and torque, delivering the pulling power and responsiveness of a 2.2-litre engine without the fuel consumption of a bigger engine. Kia is also involved in other initiatives, including sponsorship of the Australian Open tennis and a Kia Young Drivers program. Kia is also involved with a new 14 part TV series on Channel 10 called ‘Pat Callinan’s 4x4 Adventures’, where Pat spent three months driving a Kia Sorento CRDi around Australia.