Kia
aims to start producing the sedan, codenamed CK, in May 2017 and will
target annual output of 60,000 vehicles, said two people with direct
knowledge of the matter, declining to be identified as the plans have
not been made official.
The four-door model plans to take on BMW's 4 series as well as
the Audi A5 , and will feature 2.0-litre, 2.2-litre and 3.0-litre
engine options, one person said, adding that it will be Kia's second
rear-wheel drive car.
Once known for cheap and bland models, both Hyundai and Kia are
keen to move upmarket as their cars gain traction with consumers but
differentiating their brands has been and will continue to prove a
challenge.
Hyundai, which
owns 34 percent of Kia, launched standalone luxury brand Genesis last
year making it difficult for Kia to compete in that segment,
particularly as its lone luxury offering, the K900, has been met with a
tepid response from consumers.
"As Kia has no luxury brand, it is trying to position
itself as a sporty brand," said a third person with knowledge of the
planned new model.
A Kia spokesman declined to comment, saying the company did not comment on plans for new models.
REPLICATING SOUL SUCCESS
The new car, smaller than Hyundai's mid-sized Genesis
Coupe, would be the first compact sports sedan from either firm. It will
be made at a Kia factory near Seoul after some production of the
lower-margin Rio small car is shifted to Mexico early next year, the
sources said.
But carving out its own sporty niche could be tricky for Kia with
Hyundai also expected to launch a sports sedan and a new sports coupe
under the Genesis brand. Hyundai is also believed to be working on high
performance variants of some models from both the Genesis and Hyundai
marques in effort led by Albert Biermann, former chief engineer for
BMW's "M" performance car brand.
Kia has hopes of a sports car that could replicate the
success of its boxy Soul, which represented the start of a design-driven
turnaround under chief designer Peter Schreyer, a veteran of Audi. The
automaker has since introduced several sporty sedan concept vehicles
including the GT and the Novo.
"Kia hit a home run with the Soul - they figured out how
to keep it fresh and fun," said Dave Sullivan, product analysis manager
at consultancy AutoPacific.
"Apply this formula to a rear-wheel drive sedan and they
might be able to go after a younger consumer who is bored with the
played-out BMW 3-Series but wants to move out of their Soul they have
had since college," said Sullivan, who is based in Ann Arbor, Michigan.
By: Reuters (Seoul).
Reporting: Hyunjoo Jin.
Editing: Tony Munroe and Edwina Gibbs.
Review: Emerging Market Formulations & Research Unit, Flagship Records.
For The #FacebookTeam