Kia is a South Korean automaker that has set itself apart due to its stylish sedans and innovative electric vehicles. Kia is set to revolutionize the American automotive market. While the news may come as shocking to most, the company is eager for its first 100% U.S.-built model which has a core focus on the competitive pickup truck market. Kia’s CEO, Ho Sung Song mentioned recently at Seoul Auto Show that the company is keen about finding its footing in U.S. pickup truck market which has always been dominated by American and Japanese manufacturers. Kia, however, is not launching just any model truck but is working on a unique model for American drivers.
What will Kia gain from the pickup truck market in the U.S.A?
Find its way in pickup truck market is a beneficial step for Kia as this is one of the largest and most lucrative markets in the United States’ automotive industry. American buyers have stayed loyal to competitive brands like Ford, Chevrolet, and Ram. Nevertheless, the pickup truck market is always enthusiastic about new entrants. The pickup truck market offers less competitors in comparison to the traditional sedan or SUV market making it a sector where automakers can gain much profit.
According to Kia’s CEO, Ho Sung Song, the motor vehicle company is informed of the market potential and is looking to tap into this opportunity. “We are now seriously studying how to get into the pickup truck market in the United States,” he told reporters at the Seoul Auto Show. He further clarified that Kia would not be entering the market with the current Tasman model.
For Kia, the incentive to develop a U.S.-specific pickup truck is evident. The brand wishes to expand its U.S. presence. The brand has already gained American consumer trust by recalling 80,000 vehicles in the U.S. in attempts to ensure only the best vehicles drive on American roads. The American truck market personally prefers those more rugged and versatile vehicles and this means Kia has the chance to capture America’s attention with its pickup truck design.
Why is the Tasman Model not going to the U.S?
During the Seoul Auto Show, Kia showcased the Tasman pickup truck which was its first pickup offering. This model surely attracted the Europe and Australian markets due to its rugged design, 35-inch tires, and off-road-ready features. The concept version said to be WKNDR, raised the bar even higher for vehicle enthusiasts.
While there was a huge hype surround the Tasman, Kia CEO stated that this model would not reach U.S. soil. A core reason why the Tasman won’t go to America is because of the 25% import tariff on foreign-built pickups in the U.S. that is known as the “Chicken Tax.” This tariff has always made it difficult for foreign-built pickups to compete with American counterparts in terms of price.
The company will as such be building a model specifically catered to American consumers with features designed to meet their respective demands.
Kia’s collaboration with General Motors (GM)
Kia has chosen to engage in a joint venture with General Motors (GM) for the potential development of a new pickup truck. This collaboration is an attempt to dive into the U.S market boasting a competitively priced pickup truck.
The duo Kia and GM could possibly create the ideal pickup truck drawing inspiration from GM’s expertise in truck manufacturing while leveraging Kia’s innovation strengths. This collaboration also hints at the fact that Hyundai, Kia’s corporate sibling, might get its own version of the truck, further expanding the reach of the new model in the U.S. market.
Kia is set to share more details about its new pickup on April 9, during the company’s Investor Day event. If plans go according to schedule, this new truck could be in production lines in the U.S. soon. Kia’s decision to join the U.S. pickup truck market surely is a game-changer for the brand.
