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.
Fool contributor John Rosevear owns shares of General Motors. You can connect with him on Twitter at @jrosevear. The Motley Fool recommends BMW and General Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.