
Kia is making a strong stab at the low end of the price spectrum ... and best of all, its stylish new Rio is a virtual dream to drive. Kudos go to the South Korean company, for taking a niche that's been abandoned by most manufacturers and filling it with a vehicle of excellence.
by James M. Flammang
LUCKENBACH, TEXAS - Believe it or not, there was a time when "entry-level" cars earned plenty of attention. In the late 1950s and 1960s, for instance, dealerships were full of low-end import models, clamoring for buyers with slim wallets. In those days, the budget-priced market was packed not only with Volkswagen Beetles, but with Austins, Isettas, DAFs, and Renaults, to name just a few. Domestically-built subcompacts emerged in the 1970s, and remained a prominent force in the marketplace through the '80s.
Since then, the very idea of a low-priced automobile seems to produce jeers and scowls among the auto experts. During the '90s, such "entry-level" models as the Korean-built Ford Festiva (and subsequent Aspire) and the Japanese-made Geo/Chevrolet Metro captured a fair share of buyers, but mainly because they were inexpensive rather than because they possessed many great intrinsic virtues.
Because Japanese automakers have been easing out of the low-end market in recent years, the South Koreans have stepped right in. Hyundai, Kia, and Daewoo have stressed at least one low-budget automobile from the start, including the Hyundai Excel (and later Accent), and Kia's initial Sephia sedan. Daewoo joined the fray as the 1999 model year began, with its little Lanos.
Hyundai redesigned its Accent last year, turning it into an even more appealing automobile. This season, it's Kia's turn, with a brand-new model: the Rio four-door sedan. Kia calls it "a new value in entry-level category." And in this case, that appraisal is accurate.
Rio's main attraction is as simple as can be: it's billed as "America's lowest-priced sedan." Being the least expensive, however, is no assurance of strong sales, as other automakers have learned in the past. Fortunately, the Rio has an abundance of additional virtues to go along with its price.
Styling, for starters. Public relations manager Geno Effler focused on the car's "modern silhouette" and aero-look front end, as well as a "memorable" rear end. "It looks good," he advised, "which is something you don't associate" with Kia. "It's definitely not a minicar."
Basically, the Rio rides the same platform used by the Kia-built Ford Aspire, which expired after 1997. "There's no pioneering here," Effler advised.
Competing against the Hyundai Accent, Daewoo Lanos, and Toyota Echo, Kia's Rio uses a dual-overhead-cam, 1.5-liter four-cylinder engine, producing 96 horsepower at 5800 rpm and 98 pound-feet at 4500 rpm. Figures of that sort might sound a tad meager to enthusiasts, but this engine is more than sufficient to send the lightweight Rio on its way without concern. Either a five-speed manual gearbox or a four-speed automatic transmission can be installed. As for fuel economy, the manual-shift Rio earns an EPA mileage rating of 27-mpg city and 32-mpg highway. With optional automatic, the rating dips to a still-frugal 25/31 mpg.
How many folks will fit in a Rio? It has a "rear seat belted for three," Effler noted, "provided they're relatively small three." Effler praised the Rio's "spiffy" fold-down driver's seat armrest - an item lacking from many modestly-priced cars these days.
Dick Macedo, executive vice-president of marketing/sales, set forth the Rio's basic premise, declaring it to be well built, affordable, and high in value. Demand for entry-level cars "had a hole in it," Macedo explained. From an entry-level high point in 1995, when some 200,000 such cars were sold, segment sales declined to a mere 65,000 in 1999. Macedo also is interested in fleet sales, advising that he had a "standing order" for 10,000 cars from the Enterprise rental company. Finding enough vehicles to fill that order has been the problem.
Base price for the Rio is $8,595 (plus destination charge), or $8,975 with an upgrade package that includes power steering, a tilt wheel, dual visor mirrors, wheel covers, and bodyside moldings. Options include air conditioning, the automatic transmission, four-channel ABS, alloy wheels, and a cassette or CD player. Air conditioning adds $750 to the price, and anti-lock braking costs $400 extra.
Even when fully equipped, the total tariff reaches only $11,824. Like other Kias, the Rio includes a 5-year/60,000-mile basic warranty, plus 10-year/100,000-mile powertrain coverage. Macedo tends to dismiss demographic data about prospective buyers, but he did advise that the typical Rio candidate has a median income under $35,000 per year.
"Typically," Macedo admitted, "we have to be $3,000 less than a Toyota before a customer will consider a Kia." In this case, he does not believe Toyota's Echo, which has not seen high sales totals, will prove to be as much competition. Therefore, less of a price differential between the two makes might suffice.
Whether equipped with a five-speed manual transmission or Kia's four-speed automatic, the little Rio proved to be a surprisingly appealing and capable automobile. All told, this subcompact sedan is a markedly more pleasing car than one might expect in the "entry-level" league, quite a contrast from the overly elementary machines that have tended to occupy the low end of the price spectrum in the recent past.
Though not a powerhouse, standing-start takeoffs and passing on the highway are rather ambitious, at least with manual shift - clearly a cut above the minicar norm. Better yet, the gearbox works particularly easily; making it almost (maybe not quite) fun to drive. In addition, the clutch behaves admirably, to yield easygoing startups with minimal jerkiness. Even though it cannot be called loud, engine sound is not absent, either - most noticeable when pulling hard or at more than 70 mph. But even there, it's not a really a harsh or unpleasant sound.
Takeoffs aren't bad with automatic, either: not exactly swift, but more than adequate. Upshifts are quick and easy. Downshifts are pleasant and quick when dropping by only one gear, but a hard foot on the throttle produces a little rearing-back much of the time (though it's not nearly as bothersome as in some cars).
Rio's ride is amazingly supple and nicely behaved. Roads in this part of Texas are smooth but not perfect, and surfaces are grainy (producing slight tire noise). Steering response is quite quick, producing a surprisingly confident feel. Yes, there's a hint of "wander" at higher speeds, but not enough to be bothersome. A little correction is required on straightaways, but not much.
Inside, the driver faces a dashboard that's distinctive and sturdy in appearance, not typical of small cars at all, but indubitably practical. Large white-on-black gauges are easy to read. A tachometer would be a nice addition to manual-shift models, but it's not available.
Front-seat occupants enjoy plenty of headroom. Leg space is a bit limited for the front passenger, but okay for the driver. Legroom is okay in the rear, unless the front seat is substantially rearward. Toe space is very nice; head space ample. Though somewhat hard with scant head space, the center rear position is actually better than in many bigger automobiles.
Slipping into the front seat is no problem. Rear entry is not exactly a snap, but more than passable. Trunk space is passable, but the opening is squat and high. The easy pull-down glovebox is pretty fair-sized.
Cloth upholstery is pretty and durable-looking. The hand-operated window crank sits rather far forward, though in easy reach; but it has a bit of "play" in the mechanism. Power windows are not an option, so every Rio occupant will be cranking the glass up and down manually.
Passengers in warm climates will appreciate the greatly effective air conditioner with its simple, logical controls - better than many on the market. As promised, in response to complaints about earlier Kia models, radio buttons are bigger now - but their lettering is still rather small.
Finding ourselves only a few miles from near-legendary Luckenbach after
lunch, how could we resist a slight detour to the tiny town famed in
country music by Waylon, Willie, and the boys? The folks at the Luckenbach
general store/bar/post office appeared to be quite impressed with the Rio,
which caught a lot of attention during our brief stop - partly because we
happened to be driving one painted in a hard-to-miss golden-green hue.
One theme during the Texas media program got right to the point: "It's good to be the Kia!" In fact, Kia Motor America projects a $455 million net profit in fiscal 2000 (up from $162 million in 1999). They expect to sell more than 160,000 vehicles this year, versus 134,000 in 1999. Kia Motor America now accounts for 34 percent of the Korean parent company's export sales. "KMA is the straw that stirs the drink," said public relations manager Effler.
Kia's recently-introduced Long Haul Warranty is part of the reason for the anticipated sales improvement. So is increased availability of products. Late fall brings a new Optima mid-size sedan, for instance. By June of next year, the long-awaited Sedona minivan will arrive in the U.S., as a 2002 model. Looking further forward, a larger sport-utility vehicle will join the existing Sportage for the 2003 model year. Kia now has 597 dealers.
Rio is expected to be Kia's largest-selling vehicle in the U.S. In 2001, they expect to be moving between 3,000 and 5,000 cars per month. Sales will begin in earnest by October, the official launch period; but Rios will be trickling into dealerships before that time.
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