The Problem with KIA

KIA is going the route of Hyundai, also their company, in pushing luxury vehicles under a brand known for affordability. This is a mistake.

There is no reason KIA can't pull a Lexus and setup a new brand of differentiation, one that they can push as the new source of luxury. Even Nissan has Infiniti, their luxury brand, to push their higher-quality vehicles to the public.

So why isn't Hyundai and KIA doing this?

Because they haven't yet associated the losses with poor branding. They may want to raise up their brand as more than just affordable cars, and set it up for quality as well.

They want to have their cake and eat it too.

Unfortunately, a hybrid strategy will not serve them well. Soon KIA and Hyundai will find the issue and hopefully come to the correct strategy: rebranding.