The Car Manufacturer That Lapped US Competition

The power of design can save your company from bankruptcy. How do we know? Because a struggling car manufacturer eventually became one of the US market leaders. Automotive maker, KIA, was an underdog in the US market. After unreceptive product releases, the company restrategized its products and designs to maneuver ahead of rivals. KIA became the car manufacturer that lapped the US competition.

How Kia Grew in the US

KIA entered the American market from Korea in 1994. Originally, they tried to compete as a value-brand product that sacrificed features for low prices. This resulted in an undistinguishable product that could only compete on price point. Due to a Korean financial crisis and lackluster global sales, KIA went bankrupt in 1998. A fellow Korean company, Hyundai, bought them out, and under new leadership deployed R&D initiatives to better understand markets outside of Korea and to create designs that resonate with drivers.

KIA faced the daunting challenge of establishing a unique design identity while also recovering from financial hardships. As a last effort, the company drew inspiration from renowned European automakers like Mercedes, Rolls-Royce, and Lexus to incorporate similar design features so KIA would be associated with high-end cars. It was a means to gain a stronger foothold in the competitive US market. The company's market share was still relatively small, but its business would soon kick into another gear.

Bringing In Designers

To aid the design process and make KIA's models look captivating, they onboarded Peter Schreyer as the Chief Design Officer. Schreyer brought experience from Volkswagen and Audi to inject life into KIA's designs. In Roots & Wings, Schreyer writes about changing KIA's styleless lineup into one with a strong brand direction. For example, he decided to add a tiger nose grille to all the models. This detail (normally for luxury cars) garners attention to the front shape and form. There was also an emphasis on enhancing the interior of the vehicles. With extra space and integrated technology, like the wraparound digital dashboard console. When KIA involved a design visionary to challenge the status quo, they found more success.

KIA continued to develop new automotive designs under Schreyer’s direction with the KIA Soul, a modern staple for the company. The Soul was launched in 2008 and became widely known for its signature boxy design and iconic commercials that feature dancing hamsters. The vehicle earned the prestigious Red Dot design award in 2009 and was praised for its high-quality materials and independent characteristics. The playful aesthetics represented a new vehicle with versatile ways to accommodate user needs and appealed to a younger urban audience.

Winning Over Consumers

KIA paired its latest designs with a 100,000-mile/10-year powertrain warranty to introduce a new identity, This move aimed to boost customer confidence and shed the brand's past image. It got drivers interested in KIA by promoting the sustainability and durability of their cars– key elements of the rebrand. Instead of directly selling cars, this strategy highlighted some of KIA's improvements since the 90s with a quantifiable guarantee.

KIA hit a stride in the 2010s thanks to their new design initiatives. According to the sales data and the JD Power Awards, KIA's R&D investment and marketing strategies paid off. The newer KIA models were hits and annually receive awards for vehicle quality, reliability, and design. As recently as 2023, KIA broke records for the most J.D. Power awards received in one night. 7 cars won an IQS (Initial Quality Study) award in one night (Source: PR Newswire ). KIA controlled less than 1% of the US auto market in the 90s. Now they control nearly 5% (Source: CNBC ) and they are racking up awards. Focusing on the customer experience and a premium look allowed KIA to design better products that surge past rivals.

The Face of KIA

The company underwent a logo and brand strategic redesign to cement KIA's stronger market position. This strategy was a part of “Plan S” which prioritized sustainable mobility and “movement that inspires” (Source: KIA ). The logo transitioned from evenly spaced letters circled in an ellipse to interconnected letters in a bold and frameless font. This new logo design is fluid and elegant, just like the modern cars that KIA focuses on. KIA's new logo matches its US popularity. The company reinvented itself from a failing company to a powerful industry player. The rebranding was not the only reason for success, but it correlates with a 2% US market growth from 2018-2022. For more context on how KIA and other brands use design to SELL their products, check our blog Why Design Sells: Transforming Products from Ordinary to Luxury .

How More Brands Can Make the Leap

The journey for established players to outperform competitors is challenging but achievable. Those open to adaptation, innovation, and challenging norms can succeed. KIA's remarkable success in the US market shows that bold pivots can be rewarding. They have developed a well-defined brand language and essence. Despite hefty challenges in a well-established market, KIA focused on design, brand identity, and user priorities to lap the competition.

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