A Stylish Crossover Vehicle For Kia

Kia is planning to bring to the American market a new type of vehicle – a seven passenger crossover – that will compete against the likes of the Toyota Matrix and the Dodge Caliper. The Kia Carens will be sold later this year in Europe and will likely make it to the U.S. market as the Kia Rondo at about the same time. Demand for crossovers continues to rise as the market adjusts to this relatively new type of vehicle. Will the Rondo succeed? If early press reports are any indication then the answer is yes. Kia’s aggressive surge on the world scene is being made evident through new or proposed factories in Europe and in Georgia, USA. As a subsidiary of the mighty Hyundai group, Kia has long stood for being the budget Korean brand while Hyundai is the company’s value brand. The proposed Rondo will continue Kia’s tradition of providing decent quality small vehicles for prices that are thousands of dollars less than the competition. Importantly, the Rondo crossover will fit nicely into a category of vehicles that have yet to take the U.S. by storm: mini-minivans. Popular in Europe, these compact vans are much smaller than current American minivans, yet still able to hold as many as 7 adults. With three passenger row seating, the Rondo and others like it squeeze out every possible square inch of interior space to accommodate passengers. No, you won’t ride in luxury and the ride itself will be closer to a Corolla than to a Camry, but Kia is banking on consumers wanting a well appointed 7 passenger vehicle that will likely retail for under $20,000. No vehicle currently offered in the U.S. can claim to carry that many people for that small of a price. Clearly, Kia aims to be the first company to accomplish that feat. Unlike most upcoming vehicles, Kia is holding information about the Rondo close to the vest. With China’s Chery also preparing to send a similar vehicle to the U.S., Kia’s reticence is certainly understandable. Why give the competition more information than what is necessarily needed at this point in the game? Likely, a pair of gas powered four cylinder engines mated to various manual and automatic transmissions will power the Rondo. No diesel version has been discussed for the U.S. market, but one is possible for European motorists. In addition, look for Kia to offer better standard equipment choices with the Rondo than previous models have offered including, standard side and head air bags, dual zone air conditioning, and possibly all wheel drive on a premium model. Yes, Kia is no longer just a producer of cheap subcompacts. With the soon to arrive Rondo, Kia is attempting to expand its growing line by offering a vehicle like no other one on the market.

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6 Pocket Rockets!

Just because your car is small, doesn’t mean that it has to be slow. In fact, some of the fastest cars on the road today are subcompacts. How so? Because their owners have modified them to the point where they can squeeze out additional horsepower and acceleration. Let’s take a look at six cars that qualify as genuine “pocket rockets.” For the sake of argument, here are some ground rules for a pocket rocket:

The car must be a compact or smaller.

The engine must be normally aspirated; no turbo charged cars – four cylinders only.

New versions of the car must all retail for less than $20,000. The following six cars all qualify as pocket rockets when each of the above stipulations has been met: Dodge Neon; Ford Focus; Honda Civic; Scion tC; Subaru Impreza; and Volkswagen Golf. Unfortunately, the Mitsubishi Eclipse retails for just above $20,000 so it does not qualify. Besides, it looks too much like a sports car; we are only examining those vehicles that are somewhat plain before being transformed by aftermarket parts. Dodge Neon – Technically, the Neon is no longer in production as 2005 was its last model year. Still, with a 2.0L 132hp engine, the Neon remains an affordable favorite of the youth set who enjoy customizing their vehicles Ford Focus – A lemon no more! Earlier models of the Focus were problem plagued, but the car has made significant strides in the past few years and has received Consumer Report’s recommended buy label too. The stubby ZX3 produces 136 horses with its 2.0L engine Honda Civic – Redesigned for 2006, the Civic has been a fan favorite for over thirty years. Its teeny 1.8L engine pushes out an impressive 140 horses. The new Civic is a far cry from the “pregnant roller” skate look of the first Civics. Owners are grateful. Scion tC- Unlike its two boxy brethren, the tC is sleek looking and has a rocket demeanor. With a 2.3L under its hood, the tC has the second largest engine of any car in this class. You net 160 horses with the Scion. Subaru Impreza – The biggest car in this class has the most powerful engine, a 2.5L boxter engine producing 173 horses. Very competitive with larger and more powerful cars, but a favorite among “pocket rocket” fans nevertheless. VW Golf – A 2.0L 115hp drives the Golf, but the car’s light weight allows for it to buzz down the highway at a fairly good clip. Favorite ways of squeezing out additional power for pocket rocket owners include installing the following aftermarket parts:

Reusable air filters; top providers include: K&N and Green.

Cold air intake systems; favorites include: K&N, AEM, and Airaid.

Cat-back exhaust systems; leading manufacturers include: Magnaflow and Vibrant.

Performance chips; Hypertech and Jet Chips lead the way. Performance level increases are measured in horsepower, thrust, and acceleration. Depending on the parts installed and model selected, improvements can range from slight to significant. Regardless, all six models have the potential of becoming true pocket rockets and that is part of the thrill in owning one.

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DaimlerChrysler: Merger or Acquisition?

In 1998 Daimler-Benz and the Chrysler Corporation tied the knot. The newly created DaimlerChrysler [DCX] conglomerate was touted in the business world as a merger of equals with both companies retaining their unique and distinct identities. Soon after the merger the honeymoon period abruptly ended and the rancor began. Diametrically opposite management and cultural differences contributed to deep divisions which nearly scuttled the new relationship. Today, things are much different than they were in 1998; however it remains to be seen whether the long term partnership between the German and American automakers will outlast the deep, mutual distrust that prevailed for so many years.

A changing global automobile market during the final decade of the 20th century signaled the end of small, independent automakers. Although fairly large in size, the Chrysler Corporation, which nearly vanished in the early 1980s, was once again nearing a crisis point: a rapidly changing market meant that large amounts of cash would be needed to keep their product line up to date as well as to take their product to emerging and lucrative new markets. Unlike in the early 1980s when the US federal government stepped in with much needed cash, no government suitor was expected this time around. For Chrysler, the long term strategy strongly suggested that the automaker would have to be acquired in order to survive. In stepped Daimler-Benz.

At first, the merger was hailed as the deal of the century. The combined automakers, roughly the same size, quickly became the fifth largest automaker in the world. Combining German engineering – Mercedes being the principle business – and North American marketing – the Jeep line and the Chrysler minivans being the biggest draw – many envisioned that the new company would quickly capture a bigger slice of the global market. Unfortunately, the dream was nearly scuttled and for the following reasons:

An American president of the Chrysler Group, Jim Holden, was replaced by a German appointee, Dieter Zetsche. This change occurred as Chrysler was experiencing difficulty in the marketplace; additional senior American personnel had also left and were replaced by German executives too. Some felt that the Germans were imposing their will on the Americans.

Billionaire shareholder Kirk Kerkorian who owned 36 million shares of Chrysler before the merger and now held significant number of shares of DCX stock, filed suit in 2000 alleging that certain Daimler-Benz officials has committed “fraud and deceit” in orchestrating the merger.

Adding fuel to the fire was the closing out of the Plymouth brand. Already suspicious of German intentions and knowing full well that the “merger of equals” was, in fact, an acquisition of Chrysler by Daimler-Benz, the ending of the Plymouth brand escalated fears that the Chrysler Group would fade into the background.

Fortunately, time has eased some of the friction and the Chrysler Group [defined as the part of DaimlerChrysler that was at one time the Chrysler Corporation] has benefited from the merger in several ways, including:

New Mercedes inspired products. The Chrysler Crossfire was the first of several new Mercedes inspired products to find their way into the Chrysler Group. Made in Germany, the Crossfire is essentially a rebadged Mercedes roadster, a model that the top of the line Chrysler division never had.

Strengthening of the Dodge name. Already a decent performer, the Dodge division has received several Mercedes M class inspired models including the Magnum and the Charger. The Viper has been redone, the Ram trucks updated, and the Neon is in the process of being replaced. Dodge market share is increasing even in the face of strong foreign competition.

Fresh blood for Jeep. An all new 7 passenger Commander has hit the streets and additional products are being planned.

Likely, Mercedes would have survived without a merger, while Chrysler would not have. Overcoming strong cultural differences – German authoritarian vs. American creativity – has kept the company afloat. Some are crediting Zetsche’s understanding of the American company and culture with easing tensions, thus allowing the companies to benefit from what they have in common versus their differences.

Certainly, the rancor that existed just a few years ago seems to have eased. For DCX to survive and grow a mutual trust and respect of German and American cultural differences and business practices is necessary. Without both, renewed hostilities will surface and potentially scuttle what is still perceived by many as to be a fragile business relationship.

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