GM Daewoo CEO Michael Grimaldi, right, poses with the Lacetti Premiere, the automaker’s latest model, during a launching event at Hamdeok Beach on Jeju Island, Wednesday. / Yonhap |
Subcompacts Offer Creature Comforts as Well as Fuel Efficiency
By Kim Hyun-cheol
Staff Reporter
The slumping economy is changing drivers' preferences. While they have been typically in favor of larger or premium-class sedans, pressure from the financial crunch is now forcing them to turn their attention to models a class or two lower.
Automakers are introducing models with an engine capacity of around 1.6-liters in a bid to will the sales competition, and compact sedans are becoming hugely popular with both budget drivers and first-time buyers.
Recent compacts are almost as well equipped as mid- or large-sized models, with makers say they need to cram them with gadgets as consumer recognition is largely dependent on their first model.
An example is Forte, Kia Motors' latest product.
The new vehicle, replacing the current Cerato, draws heavily on the style of the recently revealed concept model Koup, also featuring a new, edgier look under the baton of Kia's design chief Peter Schreyer, whose work includes the best-selling Audi TT and the new Volkswagen Beetle.
The strategically designed Forte, with roomy interior, also has various high-quality features prevalent in mid-sized sedans, including voice-recognition DMB navigation, Bluetooth hands free and audio streaming function, a fingertip control smart key system and 17-inch wide wheels.
The response has been remarkable for Kia, which has been struggling over recent years, with 9,800 being sold in August ― its debut month ― beating out the long domination of the Avante, a steady seller from Kia's parent firm Hyundai.
``It's a premier compact sedan, in a different class from models from other makers,'' Kia said. ``Starting from the Forte, now it will be competition for premier class compact models.''
GM Daewoo is also responding with a brand new model. On Wednesday it launched its latest compact, the Lacetti Premiere, on Jeju Island.
``The Lacetti Premiere is the first member of the next generation of segment-leading products for GM Daewoo,'' said Michael Grimaldi, president and CEO of GM Daewoo.
``Working together with GM's global design and engineering teams has resulted in a vehicle destined to be a global benchmark and a sales winner with consumers at home and abroad.''
The original Lacetti ended up selling just 536 vehicles, while Kia was resurgent, but the maker is confident that the new edition will make a difference.
Based on GM's global compact vehicle architecture, which will serve as the foundation for a variety of products, the Lacetti Premiere was developed for both the Korean and international markets.
The new model, which was designed and engineered in Korea, will be manufactured in Korea, Europe and the United States and sold in over 130 countries.
The most prominent feature of the sedan is a six-speed automatic transmission, superior to the five-speed gearbox of rivals.
Aside from a standout exterior design, the vehicle was put through intensive tests for durability and extreme weather, as well as over 210 crash tests both at home and abroad to achieve its quality goals, GM Daewoo said.
Hyundai's Avante, the leader of the class for years, is going to counter these developments with its 2009 model, beefed up with convenience features such as Bluetooth hands free and embedded iPod applications.
Renault Samsung also launched a 2009 model version of its SM3 earlier this month.
The cheapest price among competitors, starting 10.9 million won ($7659.4), is its biggest selling point. The maker is poised to join a bigger battle with a follow-up product to the SM3, a transformed version of Renault's Megane, with a projected launch next June.
Strong competition is likely to continue among compacts, as they are the only models showing decent sales on both domestic and overseas markets, according to the industry, with large sedans struggling in exports, and mini cars in local sales.
The Avante ranks second in accumulated sales this year, trailing only the same company's mid-sized sedan, the Sonata. Kia's Forte was sixth in sales last month.
The domestic automotive market has shrunk this year, with a total of 886,619 vehicles sold in the Jan - Sep period, down 1 percent from the previous year. In the same nine months, exports fell 3.4 percent to 1.7 million vehicles.
While the top selling list is mostly occupied by compact or bigger-sized sedans, models of below a 1.6-liter engine capacity accounted for the vast majority of exports.
hckim@koreatimes.co.kr
|
