Kia’s Mohave Enters U.S. Market

Kia Motors Corp. decided to sell the Mojave in the U.S. market at the base price of $30,000 (28.5 million won).

This is the first time the Hyundai Kia Automotive Group set the base price of their cars at over $30,000 in the American market.

At an event inviting U.S. dealers to Seoul, held on March 6 at Kia’s headquarters in Yangjae-dong, Seoul, Vice President Lee Hyeong-geun, overseas sales chief of Kia Motors, told the Dong-A Ilbo, “The base price of the Borrego (Mojave’s name in America) will be set at $30,000. Sales will begin in July.”

So far, Kia`s highest base price has been $26,195 for the Amanti and the Veracruz, which has the highest price tag among Hyundai-Kia products, sells for $26,900.

Given that the base price will likely be around $40,000 for the Genesis 4.6L V8 to be introduced in the U.S. market in the latter half of 2008, this year is expected to be a turning point for price hikes for Korean cars exported to overseas.

Kia dealer Bill Basie said, “It will not be easy to sell the Borrego at $30,000. However, considering it has better product competitiveness than the Nissan Murano and the Honda Pilot with similar price tags, the Borrego can compete with them.”

Last year, the average exporting unit price of Hyundai cars was $14,000 and for Kia cars, the average price was mere $12,700. However, depending on the sales of high-end cars such as the Borrego and the Genesis, the average price tags can go up to $20,000 within a few years.

With such a rise in export prices, Kia Motors expects that its operating profit, currently in the range of 5 percent, can approach Toyota’s 8 percent.

cij1999@donga.com