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American Focus > Blog > Economy > Kia is crushing it in America, and sidestepping tariffs — for now
Economy

Kia is crushing it in America, and sidestepping tariffs — for now

Last updated: March 15, 2025 8:01 am
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Kia is crushing it in America, and sidestepping tariffs — for now
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Kia, the South Korean automaker, is making waves in the automotive industry with its impressive sales performance in the American market. Kia America, a subsidiary of the Hyundai Motor Group, recently announced another record-breaking sales month in February, driven by a diverse range of vehicles including the popular Telluride SUV and the EV6 crossover.

Steven Center, the COO & EVP of Kia Americas, emphasized the company’s commitment to sustainable mobility, which includes a mix of EVs, hybrids, and plug-in hybrids. Despite the industry trend towards SUVs, Kia has also continued to invest in sedans, introducing models like the midsize K4 and the larger K5, which is manufactured in North America.

One of Kia’s key strategies for growth is localizing production in the US, with plans to produce EVs in Georgia. Center highlighted Kia’s long-standing presence in the US market, with significant investments in American manufacturing and the supply chain.

While the prospect of auto tariffs looms large, particularly in light of Ford CEO Jim Farley’s concerns about unfair competition, Kia remains confident in its ability to navigate any potential challenges. Center expressed confidence in Kia’s business plan and its strong US footprint, which positions the company well to adapt to changing trade dynamics.

Looking ahead, Kia is focused on expanding its EV production capabilities at its joint plant with Hyundai in Georgia. Center reiterated Kia’s commitment to building cars locally and emphasized the company’s dedication to doing what is best for Kia and its customers.

Overall, Kia’s success in the American market is a testament to its innovative approach to sustainable mobility and its strategic investments in local production. As the automotive industry continues to evolve, Kia is poised to remain a key player in shaping the future of transportation. Kia, the South Korean automaker, has been making significant investments in its domestic production facilities in the US. With a whopping $20.5 billion spent on these facilities, the company boasts of employing over 570,000 workers in the country. This commitment to domestic production has been a key focus for Kia, as evidenced by their recent unveiling of new vehicles at the “Kia Day” event in Portugal.

See also  Demand slump fuelled by Trump tariffs hits US ports and air freight

One of the standout vehicles showcased at the event was the EV4, a sporty electric sedan available in hatchback form as well. Kia’s President, Center, believes that cars like the EV4 will not cannibalize sales of other similar vehicles in their lineup, such as the gas-powered K4 or the larger EV6 midsize crossover. Instead, he sees these new electric models as bringing in “net incremental volume,” meaning they will attract additional customers to the brand rather than simply shifting sales from one model to another.

While some industry experts remain skeptical about the potential cannibalization of sales, Center is confident in Kia’s strategy of offering a wide product portfolio in the US market. He believes that having a diverse range of powertrains will ultimately expand sales and attract new customers to the brand.

Despite concerns about economic jitters and the possibility of a slowdown in the US economy in the future, Center and Kia remain optimistic about growth. Center expressed confidence in the market’s potential, stating that as long as there aren’t any major shocks to the system, they are planning for another record year in sales.

In conclusion, Kia’s focus on domestic production and expanding their product range seems to be paying off. With innovative vehicles like the EV4 leading the way, the company is poised for continued growth in the US market. Stay tuned for more updates on Kia’s latest developments and financial news on Yahoo Finance.

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