Is America ready for a $70,000 Kia?
Kia Motors (NASDAQOTH: KIMTF ) has seen impressive sales gains in the U.S. over the last several years, thanks largely to a series of stylish models. But so far, they've been stylish-but-affordable"; Kias have generally been marketed here -- successfully -- as value-priced alternatives to cars from Toyota (NYSE: TM ) and Honda (NYSE: HMC ) .
Kia is about to aim a lot higher, though. Automotive News has reported that the company is planning to bring a big luxury sedan to the U.S. early next year. The new sedan will follow Kia's value pricing formula, but at a much higher level: With a starting price that could be as high as $70,000, it's expected that Kia will position its new car as an alternative to the full-sized BMW (NASDAQOTH: BAMXF ) 7-Series, but with a price closer to BMW's mid-size 5-Series.
Will Kia's formula translate to the luxury-car market? In this video, Fool contributor John Rosevear explains what Kia will need to have any chance of success -- and why it might fail, even if the new sedan is terrific.
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