Kia Rio 2011 News

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   

Highs and lows of 2011

And it produced a surprise winner for 2011. It's the Kia Rio. The Korean compact claims the crown by just one vote over the impressive Volvo S60, with the funky Ford Focus rounding out the top three at the end of a year that is setting all sorts of records. More than one million cars will again find new homes in 2011, it's increasingly likely that the Holden Commodore's 15-year reign as Australia's favourite car will end, and new brands from China - Geely and Chery - have taken the count in showrooms to more than 60 individual nameplates. On the COTY front, the Rio becomes the second baby-class member and only the second Korean car to claim the crown, as well as the first from the junior member of the Hyundai-Kia conglomerate. The Rio scores its success off the back of impressive design and packaging, tweaking by an Australian suspension expert, topped by smart pricing starting from $16,290. Surprisingly, it was top choice with six of the 10 COTY judges in 2011, as the Volvo and Ford split the others. At the end of two intensive and tiring days of back-to-back running, the Rio did best when measured against the COTY judging criteria of value, design, technology and safety. "It's a nice, light, easy car to drive. It's got a feisty engine and some nice little touches like the hill-start system and an upshift indicator light," says chief judge, Ged Bulmer. The safety-first Volvo S60 is also a hit with judges, apart from one obvious shortcoming in Australia. "The only thing I don't like is the spare tyre. It doesn't have one," says Neil Dowling. "For what it is, it drives well. Inside, the design is kinda the anti-Focus." The baby Ford is a driving favourite but loses out for its ergonomics and a higher price point than the Rio. "It's good value, has a good sound system, and is good value. But the dash layout is ordinary - it looks like someone threw the buttons at the dash," says Mark Hinchliffe. The COTY contest in 2011 follows a familiar pattern of recent times, with 10 judges, 10 cars and two days of tough driving on a variety of surfaces to check everything from freeway noise levels and fuel economy to dust sealing and cornering grip. There is also an intensive pre-drive briefing and quality check on all 10 contenders, which range in price from the Nissan Micra at $14,990 as an ST automatic to the heavily-loaded Range Rover Evoque at nearly $100,000. Action starts at the Ford Proving Group at You Yangs when all the contenders come together for the first time, with the good looking Evoque and the homeground hero - the diesel-powered Ford Territory diesel - sharing the spotlight. Everyone wants to know how they will compare, which strengths and weaknesses will be revealed, and how the eventual contenders will stack up against the reigning COTY champion, the Volkswagen Polo. One change for 2011 is an early cull which takes out five hopefuls. At then end of a rugged first day, with many laps of the right-and-handling course at You Yangs, a gravel-road circuit and road time in and around Geelong, there are a few surprises. The Evoque is out early because it is poor value, quality and driving failings let the Micra down, while the Volkswagen Scirocco is way too sports focussed - one judge asks for a kidney belt because the ride is almost rock hard - and the Hyundai i40 is nothing special for design or driving. The Territory also goes out because of its basic age, despite the updated front-end styling and diesel for 2011, and shortcomings in a variety of areas. So day two starts early with five cars - with the Holden Cruze hatch as the only local - and two judges aboard each for a series of real-world road loops and plenty of swapping and changing. Then it's time for a sit-down, talk-through and the final voting. Each judge lists their cars from top to bottom and the one with the lowest score wins. The Cruze looks good but has plenty of shortcomings, from lacklustre rear suspension to reflections on the instruments. "Back-to-back it with the Focus and you have to go with the Ford," says Stuart Martin. The BMW is a driving favourite, but it has a cramped cabin and falls down on value. "It's not what you expect for that sort of money. The packaging is compromised," says Neil Dowling. So the final three emerge, at the end of a tight contest with no truly standout car. The Toyota Camry might have been The One, and Ford also has the four-cylinder Falcon coming soon, but both arrived too late for the COTY cutoff. Eventually, the Rio emerges as the judges' choice and a surprising favourite despite its compact size and value-first pricing. It's definitely helped by the suspension work by Graeme Gambold, as well as a six-speed gearbox and feisty engine. "It looks good and it's value for money. All the audio stuff is there.  It's got cruise control and a spare," says Karla Pincott. "Is it better than the best cars in the class? Yes." And there it is, the Carsguide Car of the Year for 2011. FINISHING ORDER 1. Kia Rio 2. Volvo S60 3. Ford Focus 4. BMW 118 5. Holden Cruze 6. Range Rover Evoque 7. Ford Territory 8. Volkwagen Scirocco 9. Hyundai i40 10. Nissan Micra.

It was the closest ever vote in Carsguide Car of the Year history. And it produced a surprise winner for 2011. It's the Kia Rio. The Korean compact claims the crown by just one vote over the impressive Volvo S60, with the funky Ford Focus rounding out the top three at the end of a year that is setting all sorts of records. More than one million cars will again find new homes in 2011, it's increasingly likely that the Holden Commodore's 15-year reign as Australia's favourite car will end, and new brands from China - Geely and Chery - have taken the count in showrooms to more than 60 individual nameplates. On the COTY front, the Rio becomes the second baby-class member and only the second Korean car to claim the crown, as well as the first from the junior member of the Hyundai-Kia conglomerate. The Rio scores its success off the back of impressive design and packaging, tweaking by an Australian suspension expert, topped by smart pricing starting from $16,290. Surprisingly, it was top choice with six of the 10 COTY judges in 2011, as the Volvo and Ford split the others. At the end of two intensive and tiring days of back-to-back running, the Rio did best when measured against the COTY judging criteria of value, design, technology and safety. "It's a nice, light, easy car to drive. It's got a feisty engine and some nice little touches like the hill-start system and an upshift indicator light," says chief judge, Ged Bulmer. The safety-first Volvo S60 is also a hit with judges, apart from one obvious shortcoming in Australia. "The only thing I don't like is the spare tyre. It doesn't have one," says Neil Dowling. "For what it is, it drives well. Inside, the design is kinda the anti-Focus." The baby Ford is a driving favourite but loses out for its ergonomics and a higher price point than the Rio. "It's good value, has a good sound system, and is good value. But the dash layout is ordinary - it looks like someone threw the buttons at the dash," says Mark Hinchliffe. The COTY contest in 2011 follows a familiar pattern of recent times, with 10 judges, 10 cars and two days of tough driving on a variety of surfaces to check everything from freeway noise levels and fuel economy to dust sealing and cornering grip. There is also an intensive pre-drive briefing and quality check on all 10 contenders, which range in price from the Nissan Micra at $14,990 as an ST automatic to the heavily-loaded Range Rover Evoque at nearly $100,000. Action starts at the Ford Proving Group at You Yangs when all the contenders come together for the first time, with the good looking Evoque and the homeground hero - the diesel-powered Ford Territory diesel - sharing the spotlight. Everyone wants to know how they will compare, which strengths and weaknesses will be revealed, and how the eventual contenders will stack up against the reigning COTY champion, the Volkswagen Polo. One change for 2011 is an early cull which takes out five hopefuls. At then end of a rugged first day, with many laps of the right-and-handling course at You Yangs, a gravel-road circuit and road time in and around Geelong, there are a few surprises. The Evoque is out early because it is poor value, quality and driving failings let the Micra down, while the Volkswagen Scirocco is way too sports focussed - one judge asks for a kidney belt because the ride is almost rock hard - and the Hyundai i40 is nothing special for design or driving. The Territory also goes out because of its basic age, despite the updated front-end styling and diesel for 2011, and shortcomings in a variety of areas. So day two starts early with five cars - with the Holden Cruze hatch as the only local - and two judges aboard each for a series of real-world road loops and plenty of swapping and changing. Then it's time for a sit-down, talk-through and the final voting. Each judge lists their cars from top to bottom and the one with the lowest score wins. The Cruze looks good but has plenty of shortcomings, from lacklustre rear suspension to reflections on the instruments. "Back-to-back it with the Focus and you have to go with the Ford," says Stuart Martin. The BMW is a driving favourite, but it has a cramped cabin and falls down on value. "It's not what you expect for that sort of money. The packaging is compromised," says Neil Dowling. So the final three emerge, at the end of a tight contest with no truly standout car. The Toyota Camry might have been The One, and Ford also has the four-cylinder Falcon coming soon, but both arrived too late for the COTY cutoff. Eventually, the Rio emerges as the judges' choice and a surprising favourite despite its compact size and value-first pricing. It's definitely helped by the suspension work by Graeme Gambold, as well as a six-speed gearbox and feisty engine. "It looks good and it's value for money. All the audio stuff is there.  It's got cruise control and a spare," says Karla Pincott. "Is it better than the best cars in the class? Yes." And there it is, the Carsguide Car of the Year for 2011. FINISHING ORDER 1. Kia Rio 2. Volvo S60 3. Ford Focus 4. BMW 118 5. Holden Cruze 6. Range Rover Evoque 7. Ford Territory 8. Volkwagen Scirocco 9. Hyundai i40 10. Nissan Micra.

Hundreds of new and updated cars arrive in Australia each year but only one is good enough to make the honour role for Carsguide COTY.This time around the prize fight is tougher than ever, with new arrivals for 2011 covering every size and price class, from the ordinary Chery J1 from China to the exotic Ferrari 458 Italia from Italy. Neither of them makes the COTY cut, but that's another story ...The reach for COTY 2011 contenders actually stretches back to the final months of last year, to include a couple of cars that just missed the 2011 cutoff, and this time around the newcomers must have hit showrooms by December 1.So, unfortunately, the all-new Toyota Camry is a non-starter. It's the same for the make-or-break four-cylinder Falcon.But the class of 2011 covers all the bases, from affordable mini cars through family and prestige cars to a hot new coupe. The hopefuls come from Europe, Asia and Japan, as well as right home in Australia.Setting the field for 2011 was not easy, particularly with the outgoing champion - the Volkswagen Polo - still casting a considerable shadow.But each of the COTY judges, who cover the Carsguide contenders and drive them in all conditions from coast to coast, has called up their personal favourites from Alfa Romeo through to Volkswagen to help guide the selection process.Then it is the final cull by the COTY veterans to produce the top 10 for a gruelling two-day shootout to consider everything from design and safety through to value and their driving ability on a wide range of roads from Ford's You Yangs proving ground to freeways, suburban streets and gravel roads on the outskirts of Melbourne.The field is set, the race is about to be run, but we cannot get ahead of ourselves.So here are the 10 COTY contenders ... now it's over to the judges: 

Kia Rio, from $16,290 Kia has done a brilliant job in tweaking its cars for Australia from local suspension guru Graeme Gambold, and that has given it the edge in many cases over Hyundai models with the same mechanical basics. The new Rio lifts the badge away from the rock-bottom basics of the baby-car class and it also delivers more for people paying more. Gover says: Nearly twenty grand is a lot to pay for a Korean compact, even with local input to make it a better drive.

The Kia concept was one of four outrageous models hown at the Las Vegas 2011 SEMA show. The vehicles were conceived and built in-partnership with the popular lifestyle magazine, Antenna. It's outfitted with everything the modern-day surfer needs for a perfect day and night at the beach, including an authentic Grain wood surfboard mounted on the roof. The Rio 5-door has been lowered with a modified suspension for more aggressive handling, and the aggressive exterior design is accentuated by eye-grabbing 17-inch three-piece gold wheels, a stunning sunset-metallic golden-brown paint scheme, a custom body kit with a front splitter made of wood to match the surfboard on the roof and a redesigned rear fascia with center-mount dual exhaust.

Big-engined family cars are marking time as carmakers find new ways to make tiny engines do the same work. Even engineers say the change over the past 10 years has caught them out. Few would have bet on a 2-litre, four-cylinder Falcon. Kia’s powertrain manager in Europe, Dr Joachim Hahn, says the move to downsize engines wasn’t predicted a decade ago but clearly makes sense. He is planning a 1.1-litre diesel engine for the Rio small car that will achieve a fuel economy of about 3.5 litres/100km - about half the current average for the small car class. “Downsizing is a strategy we see as being the future,’‘ he says. Even the GT (Kia’s new large-car concept) will work well and lose little of its sporty nature when fitted with a 2-litre, four-cylinder engine.’’ The 1.1-litre three-cylinder diesel claims 85 grams/km of CO2 emissions - a figure that Dr Hahn says was “unachievable’’ 10 years ago. “For us in Europe, getting small car emissions down gives us the freedom to make bigger cars - so maybe the GT can have a V8.’’ Kia experimented with its Optima when it entered the US market last year by dropping the V6 engine in its predecessor and offering only four-cylinder engines. “We held our breath,’‘ he says. But no one complained. We replaced the V6 with a turbocharged four-cylinder engine and we had better than expected sales and customer feedback.’’ But Dr Hahn cautiond about taking the downsizing to far. “There are many variables,’‘ he says. Some markets expect performance from the car and a small engine will have to work so hard to meet expectations that any fuel economy benefit will be lost. “For example, we could put the 1-litre, three-cylinder turbocharged petrol engine into the Cerato. But it may not suit al customers in all markets.”

China is clearly on top of the car world in 2011.