Comments by "Stephen Hendricks" (@stephenhendricks103) on "" video.

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  3. One of the greatest strengths of the Hyundai/KIA partnership is the ability to build cars that share a large number of components while appealing to different sub-segments of market categories. The Palisade and Telluride are the most obvious examples but not the only ones. The Santa Fe and the Sorento, for example, are nearly identical under the skin but different engine options and seating rows disguise the similarities. Other examples such as the Sonata vs the Optima and the Hyundai Elantra vs the KIA Forte abound. In the case of the Stinger KIA has aimed to produce an "Americanized" version of a classic European GT sedan. At 190" it's about 2.5" longer than an Audi A5 Sportback and 5.6" less than an A7. The Genesis G70, on the other hand, is clearly aimed at the classic European sport sedan, the BMW 3 series (3 series: 185.7" vs G70 184.4") When KIA introduced the Stinger I think they made two mistakes, one that would have been easily avoided and the other a more difficult challenge. The name "Stinger", I believe was an error. Although the vehicle is clearly a budget version of a European GT sedan the moniker "Stinger" is closer to an American muscle car like a Dodge "Charger" or even a Ford "Mustang." I doubt seriously that many shoppers who consider buying an Audi A5 consider a Charger but the name "Stinger" seems to suggest the same kind of vehicle and the Stinger and Charger are clearly very different. New cars have only one chance to make a first impression and I think KIA's choice of the Stinger label was a mistake. A bigger problem was that without a luxury division of its own KIA had to sell the Stinger through its existing dealer network. Not only were KIA dealers unfamiliar with a vehicle like the Stinger and unprepared to sell it, buyers looking for a GT sedan were seldom to be found walking into a KIA showroom. In fact, KIA initially faced a similar problem with the Telluride. And for that reason KIA dealers under-ordered the top trim SXL Telluride in favor of the less expensive lower trims. As my KIA dealer said to me, "We were completely unprepared for a customer willing to spend nearly $50,000 for a KIA." In that case the obvious superiority of the Telluride led to massive demand, long waiting lines, and "market adjustment" stickers but the inherently more limited demand for a GT sedan (and shrinking overall sedan sales) didn't have the same effect. I suspect, in fact, that if KIA had introduced the Telluride before the Stinger the latter would have generated significantly more interest and dealer ability to deal with non-budget consumers than it did. (KIA dealers have begun to learn the lessons their Telluride customers have taught them.) Of course, the G70 has also had its problems. In fact, the Stinger outsold the G70 in the 2019 calendar year (13,000+ vs 11,000+) and in the disastrous first quarter of 2020 (for all manufacturers) the Stinger sold a few more units than the G70 in the US (2600 vs 2100.) But the Genesis has other problems including a tiny dealer network and the last thing Hyundai wants to do is drop one of its few Genesis models regardless of its anemic sales. KIA may well decide to discontinue the Stinger, especially in the expectation that the rest of 2020 (and 2021) will be a sales disaster for the entire automotive industry and sedans in particular. And if Hyundai/KIA believes the Stinger is stealing sales from the G70, they may decide to sacrifice it to help the Genesis brand. That would be a shame, I think. The Stinger is an excellent GT sedan, especially versatile and comfortable for long trips. But automotive brands (and dealers) couldn't care less about such attributes if they don't sell. And KIA is focused like a laser on hitting the sweet spot of consumer demand in all their vehicles.
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