Kia Optima News

They are caught in a vice that is changing the rules in showrooms across the world, but especially in Australia. Korean brands are rising fast and European prestige companies are drilling down, creating massive pressures in the middle ground that has been a happy place for the Japanese for more than 30 years. It's good news for buyers, who will get more choice and better value at both ends, but the new rules will change the game for the Japanese. Far too many Japanese carmakers - Toyota and Honda for sure - are also about to feel the impact of their cost cutting decisions through the global financial crisis. All of the major Japanese brands cut spending and several cancelled new-model programs and urgent update work to save money, leaving them without anything new to draw buyers. Honda has the new Civic coming but not much else, Toyota has the (yawn) new Camry this year but the vital FT-86 sports car is still more than a year away, and even Suzuki is running out of ammunition after the Kizashi and upcoming Swift. In the opposition camps, Hyundai and Kia are getting better and better with every new model - the Kia Optima is a Camry rival with more style and value from just $36,990 - and BMW, Audi and even Mercedes are coming down with a sub-1 Series, the A1 and upcoming B-Class hero. The Europeans are chasing more sales at every level and know there is demand they can tap with smaller cars that suit people downsizing around the world. In Australia, they could even jump from a Commodore or Falcon into an A1 for city-first work. But the real challenge is coming from the Koreans, as Kia highlights again this week with the Optima. It's doing a great job in tweaking solid shared Hyundai mechanical parts into vehicles that people really want, including the classy Sportage that was runner-up in last year's Carsguide Car of the Year contest. The things that once made Japanese cars so desirable - cabin quality, reliability and great air-conditioning - are now available in Korean models that cost less and have the big advantage of five-year warranty backup. And they keep on coming. In short, Korean companies now make better-value Japanese-style cars than the Japanese do. That means the Japanese brands need to find a point of different, and a reason for people to buy, and fast. Lots of people still wonder about the long-term benefit of buying Korean, or remember the days of a Hyundai Excel that was basically a disposable car, but things are changing and changing fast. Korea has already put a sword through Japan's electronics business and the cars are next.

If it passes the test in the US market, it is a candidate for Australia.Kia this week says its first electric-petrol hybrid, the Optima Ecodynamics model, will be sent into the North American market in the first quarter of next year. Production starts in December, says Kia’s Product manager, M Ji-Hoon Han.“It will have the 2.4-litre engine but not the GDI engine" he says. “That engine is too heavy - about 30kg too heavy - for the hybrid.’’However, if the touchdown for Australia is a few years away, Kia may consider using its lightweight 2-litre GDI engine as the petrol powerplant. That engine starts production next year and is earmarked for the Optima. Mr Han says the Optima Ecodynamics has been developed with right-hand drive markets in mind.Kia Australia spokesman Kevin Hepworth says it could get here as early as 2012. “We would be very, very happy if this car was offered in Australia,’‘ he says. “I suspect it will be 2012 at the earliest.“Having the new 2-litre GDI engine in the hybrid would make more sense for us. It will be the latest technology and would be something worth waiting for.’’ Kia wouldn’t release any details of the Optima Ecodynamics. t says it will reveal the car early in the new year before its US debut.

The Optima and Cerato five-door hatch take that stance much further than the somewhat blocky Sportage SUV that arrived a few months ago.  Both well-proportioned, fresh and attractive, they’ll probably be noticed in traffic long before people can get close enough to be surprised by the badge.We’ll have to wait until early next year for the Optima, but the Cerato five-door – based on the popular Hyundai i30 platform -- arrives within weeks and carries pricing that starts at $20,240 for the Si manual and ranges up to $26,240 for the SLi automatic.It will have a 115kW 2.0-litre four-cylinder petrol engine, mated to either a six-speed manual or a six-speed automatic, the first of which Kia says will deliver a 0-100km/h speed of 9.1 seconds and a top speed of 190 kph.The automatic has a sequential Sport mode, and F1-style paddle shifters on the steering wheel for the SLi model. It makes a Cerato trio here, joining the Koup and the sedan, and bringing with it features that will benefit those two in an upgrade later this year.  It’s the second of the Kia stable, after the recently-arrived Sportage SUV, to get suspension and steering expressly designed for Australia.While it is still too early for confirmation of Optima pricing, there’s no secret that Kia is hoping to stir up far more interest than there was in the Magentis it replaces – and which failed to excite real interest while it was here.However, the sleek coupe-like lines of the Optima have a very real chance of reviving the Korean brand’s presence in the mid-size field.

If anyone still doubted the South Korean manufacturer’s styling credentials, the rise of the Optima should put those to rest forever.  This is a car certain to raise concerns, however, among competitors in the mid-size market.The car was developed jointly by designer Peter Schreyer at two of Kia’s global styling centres: Irvine, California and Frankfurt, Germany. If Mr Schreyer’s name rings a bell, it’s probably because he also designed the original Audi TT.The Optima will replace the Magentis in Kia’s Australian range and, compared with the Magentis, it is longer, wider, lower and significantly more stylish. Globally there are 2.0-litre turbocharged and 2.4-litre naturally aspirated petrol fours powering the front wheels via either a six-speed manual or six-speed automatic transmission.Both engines feature direct injection technology, with spark ignition. Here in Australia, however, we’ll probably see only the larger 2.4-litre ‘Theta II’ engine, which produces 148kW of peak power, and 250Nm. Further out on the product horizon is the 2.4-litre Optima Hybrid, a petrol-electric hybrid which will mark Kia’s first production foray into the hybrid domain. It will be released globally next year.Expect a weapons-grade load of standard kit including six airbags, stability control, brake assist, hill-start assist and even a tyre pressure monitoring system.Pricing is anyone’s guess – however it’s likely the Optima will either match or be released from close to the existing Magentis’s market entry point, at just under $25,000. That’s a lot of car for the money.Joining the Optima on the Kia stand will be the new Cerato, due for release here this month in both sedan and ‘Koup’ form. Power will be provided by a 2.0-litre petrol engine mated to new six-speed manual and auto transmissions. Also on the Kia stand, you’ll see the new Sportage SUV.

And it's finally the turn of the mid-sized flagship sedan, which we knew as the Magentis that faded from our showrooms about a year ago..The Optima is the new Magentis, and has reappeared not just with a new name but a new everything else to boot.The Magentis never really fired the imagination in Australia, but Kia hopes that will change with this car.  It's a new vehicle from grille to tail, with a bolder look, which the brand's chief designer Peter Schreyer cites as having 'athletic and visual sporting energy'.While you can often write off that sort of statement as PR optimism, in this case the Optima does have a noticeably better sculpted body, with strong lines over the shoulders and flanks set off by more muscular wheel arches.Schreyer says the development of the design was swift and smooth, with the brand's three main design nodes working in concert.  "The final exterior was from the Frankfurt studio, the interior came from the studio in California, and the refinement was done in Korea," Schreyer says."We had some scale models done, and finally we had two full sizes done but there was one that had a lot of character and I always thought 'this is it' and it was it.  And it didn't change that much from say the first development to the end and it still has that kind of character and I think that's what makes it."Schreyer says partly because the design concept was so fully resolved from the start, and partly due to Kia's well-meshed organizational operations, the development of the Optima was very swift - but its speed surprised even him."That was very quick, and it was quick because we had the idea from the beginning. And the way our company works is really fast. sometimes I'm stunned we deliver a full size model and then a few months later I come back to Korea, and walk in to our presentation room and there is a prototype."It's like wow, it's really amazing how fast this goes sometimes . it's unbelievable. And in this case also we were kind of lucky that we had a very substantial design from the beginning.  Also there was no bounds, there was no 'maybe we have to change it' and that would delay this and that. It was very smooth."And that smoothness is echoed in the body design itself. While it's a four-door, Kia has followed the trend for coupe-ish shaping that trims the profile and lends some aerodynamic benefit in reducing drag - which is down to 0.29 from the previous 0.32) -- and hence also fuel consumption.The car launched in Paris has plenty of opportunity to be dressed up even further, with optional spec-ups in the form of a mesh grille, body kit, LED daytime running lights and tail lamps and 18-in wheels with larger discs and black calipers.It looks very purposeful, and sitting longer, lower and wider on a longer wheelbase, it promises improved handling and road manners - an aspect Kia worked hard on with the recently launched Sportage SUV.  In Europe it will be launched with two new engines: the 125kW 2.0-litre petrol and the 100kW/330Nm turbocharged 'U2' 1.7-litre diesel which has an optional stop-start system, but there are no firm decisions yet on drivetrains for Australia.The petrol aims for frugality, with continuously variable valve technology and two-stage variable induction chipping in some effort.  And adding the optional stop-start to the diesel reduces the CO2 from 122g/km to 113g/km.However, we are unlikely to get the system at this stage, as it's shackled to the six-speed manual transmission, whereas Kia would probably prefer to bring the six-speed automatic that should prove to be a more attractive choice to Australian buyers."The problem for Australia is the percentage of auto uptake in that market is huge, it's like 82 per cent," Kia Australia's new chief operating officer Tony Barlow says."I'm sure at some stage they will come up with an automatic transmission. We're still looking at it with the manual transmissions but it's like everything - you have to do a study, make sure it's viable, and we can get some numbers out of it."However Barlow says Australia has its eye on a more powerful 150kW/245Nm 2.4-litre direct-injection four-cylinder petrol engine, which is likely to be mated to a six-speed automatic transmission.  "The 2.4-litre is the favourite at this point, but we're still investigating it," he says.There are also no decisions yet on the fit-out and spec for Australia, but the Paris car included solar glass, powered lumbar support for the drivers seat, indicators in the side mirrors and six-speaker CD, with automatically folding mirrors and parking assist on the options list.And we're yet to hear about pricing, which for the Magentis hovered beween mid-$25,000 and $30,000 depending on spec. But Kia aims to give the Optima the best possible start."The competition's tough but we'll continue our strategic pricing policies in that area and I think it's going to be a very competitive package," Barlow says.  "I think it's really going to take that segment by surprise. Itt's a real challenger product and that's what we're looking for."

The hybrid will take a step beyond Toyota's flagship with a lithium-ion polymer battery pack but will not be built as a plug-in car, according to Kia chief, Hank Lee. It is most likely to be a version of the latest Optima, which has just out-sold the equivalent Hyundai in Korea and is coming to Australia early in 2011. But there is - as yet - no confirmation of a hybrid plan down under."From January we will be building a hybrid. Full hybrid, like the Camry," Lee tells Carsguide in an exclusive interview. "We plan to utilise an existing body. We have already developed a left-hand drive version and production will be from December this year. But the layout for right-hand drive is a little bit different. We are negotiating to cut the investment so we can do it."Lee says Kia has a high-tech drive underway in Korea as it works on everything from plug-in city cars to models powered by hydrogen fuel cells generating on-board electricity. But it also has a total renewal underway on its current showroom models."By 2013 I think most of our product will be new. That, I think, is our strength," he says. "Even during the financial crisis we never stopped, never delayed, our new product development. That, I think, is our strength. The new product keeps coming. And we will have some high-performance engines."He says the latest Sportage is just the start, with the Optima coming early next year and the all-new Rio later in 2011."For Rio, we benchmark Toyota Yaris and Peugeot 207."But he stops short of a five-star safety commitment on every new Kia, unless Australia - and Australians - are prepared to pay."The technology is for five-star in all products. In America, with an entry car, four-star is enough," Lee says. "To achieve five-star we need active and passive safety features. (So) It depends on the local needs. If MK Kim (Australian Managing Director) and his team want five-star with the new Rio then he has to pay more. And also the customer has to pay more. It's a marketing decision."But he currently rules out building Kia cars for Australia outside Korea, even if Hyundai is spreading its manufacturing footprint."Duty now is five per cent and we are discussing with the Australian government a Free Trade Agreement. If both governments reach an agreement then why not from Korea? It's not very far from here and no tariff."

The new-generation Optima (designed at Kia's in-house Frankfurt and California studios) continues Kia's styling trend begun by the Cerato, with as many as five new powertrains, including a hybrid.The Optima's new platform is longer, wider and lower than the vehicle it replaces - 4845mm long (up by 45mm), 1830mm wide, a 2795mm wheelbase (a 75mm increase) and ground clearance of 135mm.It will be available with three new Theta II engines, a 151kW 2.4-litre direct-injection four-cylinder, a 207kW two-litre direct-injection turbocharged engine (bound for Australia) or a 2.4-litre hybrid, the latter to be introduced in 2011. Australia-bound Optimas are also likely to be offered with a 123kW two-litre or a 133kW 2.4-litre engine; both manual and automatics will be six-speeders.The new Optima's safety features are likely to include six airbags (dual front, side and full-length curtain), front active headrests, tyre pressure monitoring system, anti-lock brakes, stability control and hill assist.Kia chief design officer Peter Schreyer says the new Optima is a new strand in Kia's growing design DNA."It's a blend of simple and fluid lines and elegant but uncomplicated shapes that draw the attention of the eye in much the same fashion as a perfectly-tailored fine Italian suit," he says. "From the distinctive sweeping chrome accent stretching through the C-pillars to the sleek greenhouse and flared wheel arches, every inch of the Optima projects a distinguished and refined style and extreme attention to detail."The all-new Optima also employs engine management systems like direct injection, multi-port injection and turbocharging to help bring performance to the brand without sacrificing fuel efficiency. The new model is scheduled to be launched in Australia late in the final quarter four, replacing the Magentis and bringing the Optima nameplate back to local showrooms after a four-year absence.Also making its world premiere in New York is the Cerato five-door, bringing with it updated grille, alloy wheels and centre console, as well as three petrol engines - a 1.6-litre, 2.0-litre or 2.4-litre - and six-speed manual or automatic transmissions.Kia says customers outside of North America will be able to choose from the 1.6 and 2.0-litre powerplants, the latter more likely for Australia when the new five-door hatch is launched in October.

Just as Hyundai restricts its luxury Genesis to left-hand drive production, Kia has made a similar decision for the model called VG.Pictures of the VG show it is just as good looking as the Genesis — or better — with European-inspired bodywork with some obvious ties to the BMW design direction.But no-one in Australia should get too excited about the VG. "Unfortunately it is only available in left-hand drive at this stage and we are not likely to see it here," says Jonathan Fletcher, spokesman for Kia Australia."It is certainly a statement that the company's design philosophy has matured - something you can already see in other models from the new Cerato onwards."The VG is officially the replacement for the Kia Opirus, which is sold in Korea, America and Europe.

Nick Adamidis, national sales and marketing manager for automotive research company Glass's Information Service, says people are being forced to sell their cars cheaply."The new-car market has been booming for the past few years and as a result there's an oversupply in the market place, which means that used cars are not necessarily bringing the prices people believe they are worth," he said."The price of fuel has had a big effect on cars with V8 engines, for example, which are depreciating faster than other vehicles as people try to get rid of them."People now expect a discount if they are buying a V8, because of their petrol usage."In 2000, a three-year-old V6-engined Holden Commodore Executive sedan could be bought for just over 50 per cent of its original purchase price, but today buyers have to pay only 44 per cent of the original price.Mr Adamidis said drops in tariffs on imported vehicles were also driving prices down."It affects the whole market, because if the makers of imported vehicles drop their price by $2000 or $3000 then the local makers have to drop their prices as well to stay competitive," he said."It's a great time to be buying a used car — it's a buyers' market."But we've still got a fair way to go. In the US and the UK, where the markets are more free, the average car, after three years, is worth 30 per cent of the original purchase price."In Australia, the average is 45 per cent, but we're heading in that direction and we'll get there in the next five to seven years."The drop in used-car prices has also been noted by the NSW Department of Commerce, which manages the Government's fleet.A department spokeswoman said State Fleet had tracked a downward trend in the prices it was getting for its used vehicles.Large, locally manufactured cars have had the biggest drop with much less in the small car segment. The drop in prices was spurring sales, however, with clearance rates at government auctions over the past two weeks of 99 per cent and 94 per cent, respectively.David Smith, senior manager of divisional services for the Motor Traders' Association of NSW, said prices would continue to fall."Some of the less fuel-efficient cars are definitely feeling it, but small cars are holding their value fairly well," he said."That's a reflection of the new-car market, because a lot of people are buying smaller cars and a lot of them are being traded in."He said that used-car dealers were the ones being squeezed by the price falls."There are a lot of dealers out there who are doing it tough," Mr Smith added. BEST VALUE RETAINED*SmallSubaru Impreza ............. 62%Mini Cooper .................. 61%Mitsubishi Lancer .......... 59% MediumSubaru Liberty .............. 58%Mazda 6 ....................... 55%Honda Accord ............... 53% LargeToyota Camry(4cyl) ....... 45%Toyota Aurion ............... 42%Ford Falcon LPG ........... 42% 4WDNissan X-Trail ................ 64%Subaru Forester ............ 63%BMW X3 ....................... 61% WORST VALUE RETAINEDSmallKia Rio ......................... 38%Suzuki Swift ................. 38%Proton Savvy ................. 38% MediumKia Optima ................... 37%Kia Magentis ................ 37%Hyundai Grandeur ......... 37% LargeNissan Maxima ............. 37%Ford Fairmont ............... 34%Ford Falcon .................. 32% 4WDLand Rover Freelander ... 42%Land Rover Discovery .... 40%Ssangyong Musso ........ 40%* Based on wholesale prices of three-year-old vehicles in average condition.