Until now reserved practically only and only for premium brands, with the German Mercedes-Benz at the front line, the vans as an expression of style, inspired by shooting brakes, now reach generalist brands, with the introduction of Kia ProCeed.
Manifestation of a supposed ambition for the premium universe — especially after the brand has already launched the “Gran Tourer” Stinger —, or nothing more than an effort to assert a new, more exciting image, this was the starting point for a conversation with the Spaniard Emilio Herrera, Head of Operations for Kia Europe. In which there was talk not only about the new “beautiful girl” of the South Korean brand, but also about Diesel, electrification, technologies, positioning… and, by the way, new models!
Let's start with the main reason for our conversation, the new shooting brake, Kia ProCeed. What drives a generalist brand like Kia to enter a territory that, until now, seemed to be reserved only and only for premium brands?
Emílio Herrera (ER) — Kia ProCeed is the brand's debut in a market segment where, with the exception of Mercedes-Benz CLA Shooting Brake, there is practically no competition. With ProCeed, we intend to offer a product that not only seeks to bring together aesthetics and functionality, but also to ensure a different visibility for the brand, on the day-to-day roads. We want people to notice the brand more, to recognize a Kia when they see it pass...
This means that sales are not the most important thing…
ER — None of that. The fact that it is an image proposal does not mean that we are not thinking about sales volume. In fact, we believe that ProCeed will represent around 20% of the total sales of the Ceed range, if not more. Basically, out of every five Ceeds sold, one will be a ProCeed. From the outset, because it is a proposal that, despite the exterior design, has not lost its practical aspect, being even more functional than the three-door, already removed from the range.
However, it is another car that, as they have already said, will only be marketed in Europe...
ER — It's true, this is a car designed, produced and marketed only in Europe. Moreover, it is not a proposal that fits those that are the main requirements, for example, of the American market, where what is most wanted are big cars, the so-called pick-up trucks...
For markets like the American, Kia has the Stinger, even if sales are not exactly by volume...
ER — To me, Stinger's numbers don't worry me. In fact, we never thought of the Stinger as a model that could add volume, because it is a segment dominated by German brands for a long time. What we really wanted with the Stinger was, just and only, to show what Kia also knows how to do. With ProCeed, the goals are different — the car has the same purpose as the Stinger, to reinforce the brand image, but at the same time, it should contribute to increasing sales volumes. I believe that, especially from the moment we move forward with the most basic versions, the ProCeed could even become one of the best-selling models within the Ceed range.
"I'd rather sell more ProCeed than Ceed vans"
So what about the Ceed van, which has also been announced? Will they not run the risk of cannibalization between the two models?
ER — Yes, it is possible that there could be some cannibalization between the two models. However, this is something that does not concern us, because, in the end, both cars will be produced in the same factory and, for us, it makes us as much to sell one model as another. The important thing is that the total volume of Ceed sold increases compared to the current one. However, I also say that I prefer to sell more ProCeed than vans. Why? Because ProCeed will give us more image. And there won't be another shooting brake in the range, other than this one…
You spoke earlier about the possibility of launching other, more basic versions of ProCeed. How do you think to do that?
ER — The ProCeed shooting brake will initially be launched in two versions, GT Line and GT, and our expectation is that the first will sell more than the second, although it always depends on the markets. Later on, we can launch more accessible versions, even as a way to cover a greater area of the market, which will certainly make the weight of ProCeed come to represent more in the total sales of the Ceed range than the 20% I mentioned...
Still regarding the objective of strengthening the brand image, it is then possible to expect more products in this regard...
ER - Yes, I think so… Even because the brand's goal is that, from now on, whenever we launch a new product, there is a more emotional version, what I have already called the “fun factor”. In other words, creating in customers the idea that I buy a car because it's practical, but also because I like the lines, I have fun behind the wheel…
“Premium? None of that! We are and will continue to be a generalist brand"
Does this mean that the affordable and affordable Kia phase is a thing of the past?
ER — None of that, that's a principle we want to keep. Kia is a generalist brand, we are not a premium brand, we don't want to be a premium brand, so we have to maintain an adequate price; what in English is called “value for money”. We're not going to be the cheapest on the market, we're not going to be the most expensive either; yes, we are going to be a generalist brand, which seeks to offer a little more emotion, attraction!
This, despite this foray into premium territory…
ER - We definitely don't want to be a premium brand! It's not something that appeals to us, we don't even intend to be at Volkswagen's level. We do want to continue to be a generalist brand. This is our goal!…
And, by the way, with the biggest guarantees on the market...
ER - That, yes. By the way, we intend to extend the 7-year warranty to Selective vehicles as well. However, we are going to present, already at the Paris Motor Show, the 100% electric Niro, with a WLTP autonomy of 465 km, also with a seven-year warranty. It is, therefore, a measure to continue…
“95 g/km of CO2 by 2020 will be a difficult target to achieve”
Speaking of electrics, when will the electrification, for example, of the best sellers Sportage and Ceed?ER - In the case of the Ceed range, electrification will reach the five doors first, in various ways — as mild-hybrid (semi-hybrid) for sure; as a plug-in hybrid, too; and we may have some more surprises in the near future. The Sportage will also have, guaranteed, a mild-hybrid version of 48V, although it may also have other solutions...
New emission requirements promise not to be easy to meet…
ER — We must not forget that all brands will have to comply with 95 g/km of CO2 on average by 2020. And this is very difficult in a market that is abandoning Diesel and where cars are getting bigger. There are two negative trends that are hindering efforts to comply with the new CO2 regulations, and the only way to mitigate this is through electrical versions, plug-in hybrids, hybrids, mild-hybrids, etc. In our case, we have already launched the 48V mild-hybrid Diesel, next year the gasoline mild-hybrid will arrive, and the objective is to develop more and more products based on these technologies, extending them to our entire range…
"Sell between six and eight million cars will be fundamental"
So what about Kia's positioning, vis-à-vis Hyundai, within the group itself, what about?
ER — Within the group policy, I can guarantee that Hyundai does not intend to be premium either. Now, since Peter Schreyer became world president for design, what we've been trying to do is to differentiate not just the two brands, but the models themselves. For example, Hyundai will never have a shooting brake! Basically, we are going to have to differentiate ourselves more and more, so that there is no cannibalization, because Hyundai and Kia will continue to compete in the same segments.
However, they share the same components…
ER — I believe that sharing components, and hence development costs, will be an increasingly important aspect in this sector. Having a large enough volume, between six to eight million cars a year, to fund the development of new solutions to get them to market faster and faster, is going to be increasingly important. And then, there must also be a very good geographical distribution, in practically every country in the world, in order to survive, in the coming years...
In other words, we will hardly see a Kia “N” on the road…
ER — How the Hyundai i30 N? None of that! In fact, this type of product only makes sense in a brand like Hyundai, which is involved in rallies, in competition. We are not in that world, so we are going to make sports versions, yes; capable of conveying driving pleasure, yes; but that will never be an “N”! Will it be a Ceed GT or a ProCeed… Now, it's also true that we've been evolving the design, improving the driving experience, and all this has been done with the help of a German gentleman named Albert Biermann. In fact, in my opinion, it was really an excellent signing, also justified by the reactions we have had from various media, including Germans, who consider that the driving experience in our cars has improved a lot. Even giving them a better grade than the Volkswagen Golf!
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