In 1997, Kia declared bankruptcy after becoming a stand-alone autonomous company. In 1998, Hyundai Motor Group made the decision to buy the automaker in order to keep it viable. Although Kia and the Hyundai Motor Group are separate companies, Kia Motors is a subsidiary of Hyundai.
In This Article...
History[edit]
When Hyundai Motor Company acquired 51% of Kia in 1998, the group was created. Hyundai currently controls 33.7% of Kia Motors as of March 31, 2011.
The Hyundai Motor Group said on May 22, 2022, that by the year 2025, it would invest an extra $5 billion in the United States. With the investment, collaboration with US businesses would be strengthened in fields like urban air mobility, autonomous driving, artificial intelligence, and robotics. President Biden made the announcements while on a trip to South Korea.
Do Hyundai and Kia share the same engines?
Some people consider Hyundai and Kia to be simply rebadged versions of the same cars. The two brands do have a close relationship, despite the fact that this is not the case. Hyundai acquired Kia in 1998 and now owns 51% of the business. The two corporations are now regarded as sisters because that share has decreased to around a third.
Hyundai and Kia frequently use one another’s vehicle platforms as a result of their tight cooperation. Do the cars from both brands have the same engines?
The Incredible Story of Hyundai and Kia’s (Re)Birth
Hyundai probably would have been the target of every automotive joke throughout the late 1980s and early 1990s if it weren’t for the Yugo’s disastrous stint on the American auto market. Excel was a bad, very unreliable program that was best at crushing the Korean automaker’s attempt to enter the American market before it even started. Through the 1990s, sales fell and eventually plateaued. Then, in 1998, Daewoo made an even more disastrous entrance (and subsequent faceplant) into the American market, putting the very notion of a Korean automaker in danger.
From the brand’s peak a decade earlier, Hyundai’s yearly U.S. sales had fallen to roughly 90,000 vehicles by 1998, a decrease of more than 170,000 units. However, 1998 also saw Hyundai acquire Kia and start to emerge from the hole it had dug for itself. At least initially, it wasn’t based on a stunning product. Instead, the much-publicized 10-year/100,000-mile powertrain warranty served as image repair. Sales increased, giving Hyundai more time to make small adjustments to their cars—a move that would lay the groundwork for longer-term success. In the early 2000s, auto critics portrayed Korean automakers as the protagonist of a Horatio Alger tale. Even though everything was exaggerated, at least some of it was based in reality.
But nowadays, Korean automakers may succeed without being evaluated on a curve. The cars from Hyundai, Kia, and more lately Genesis aren’t merely affordable and of good enough quality. They have advanced up the value chain, to use business terminology. Korean automobiles, including those made by Samsung and LG and other Korean businesses, are increasingly really coveted. Hyundai/Kia/Genesis is having success after success with everything from high-end sports sedans to sporty hatchbacks to battery-electric models.
You can create a potential juggernaut that was unthinkable when the Excel clattered onto the scene more than 30 years ago by combining the industrial might of Korea’s vertically integrated megacorporations with the rising interest in Korean pop culture and the willingness of Hyundai/Kia/Genesis to poach the best design and engineering talent from around the world. The world of automobiles has taken a bullet from K-pop.
Which brand came first, Hyundai or Kia?
According to the Wikipedia page for the Kia Corporation, Kia was established in Korea in 1944. However, the Hyundai Motor Company’s Wikipedia states that the Hyundai Engineering and Construction Company was founded in 1947. The Hyundai Motor Company was not established until much later, in 1968. So it’s clear that Kia came first.
After that, Kia took on decades of manufacturing and selling, releasing a number of models in association with other automakers including Ford and Mazda. But in 1997, during the Asian financial crisis, Kia declared bankruptcy. At this point in the narrative, Kia and Hyundai’s relationship undergoes a big transformation.
In 1968, Hyundai and Ford jointly released their first car, the Cortina. This ultimately led to Hyundai producing the Pony, the first automobile entirely designed and built in South Korea, in 1975. Hyundai purchased 51% of Kia Motor Corporation in 1998. (now changed to Kia Corporation). The formation of Hyundai Motor Group.
Kia Motors’ failure
According to the Wikipedia entry for Kia Motors, an Asian financial crisis occurred in 1997. Kia and Hyundai Motor Company reached an agreement for a specific transfer of ownership between the two automakers. In 1998, this agreement was reached. After outbidding Ford Motor Company, Hyundai Motor Company obtained 51% of Kia. Since 1986, Ford has had a sizable stake in Kia, but the 1998 Hyundai acquisition changed that, making the business a completely Korean automobile manufacturer.
Hyundai and Kia Brand Comparison
There are many parallels between Hyundai and Kia. Both companies are situated in South Korea and have comparable product lines. In actuality, Hyundai Motor Company owns 34% of Kia Motors. Many of these vehicles share engineering, platforms, and powertrains. Hyundai and Kia, however, run their businesses separately. Each brand continues to operate its own design studios, engineering team, sales team, and marketing division. Having said that, there are really more positive similarities between the two brands than negative ones, which is good. Both manufacturers produce luxurious cars with excellent warranties that their owners adore. Nevertheless, it’s important to be aware of these minor variations so that you can make an educated decision.
Is Hyundai the same corporation as Kia?
In 1988, after Kia Motors declared bankruptcy, the Hyundai Motor Group acquired 51% of the company’s stock. The acquisition kept the two automakers’ product lines separate while uniting them under one corporate banner. Hyundai therefore technically owns Kia.
Despite the fact that both brands are South Korean, there are distinctions in the way the cars are built and designed.
I find both brands’ history to be fascinating. Continue reading to see how their merger impacted their businesses and where they currently stand in the marketplace.
What ties Hyundai and Kia together?
No one would blame you if you believed Kia and Hyundai were the same as Acura and Lexus were owned by automakers like Honda and Toyota. Hyundai technically owns one-third of Kia, making it the automaker’s parent company. They are two independent businesses, despite sharing platforms, engines, and other components.
With the exception of pickups and sports cars, both Kia and Honda provide a full range of automobiles. They provide some of the longest warranties to their clients, with a limited powertrain warranty that lasts up to 10 years or 100,000 miles. With a selection of sedans, SUVs, and trim levels to choose from, Kia and Hyundai also provide a vehicle for practically everyone.
Does Kia outperform Hyundai?
The conclusion is that, despite the similarity of the vehicles offered by Hyundai and Kia, Kia models offer greater value and better quality, as well as bolder style and a more engaging driving experience. Simply put, no matter what you value most in a car, Kia automobiles are better overall. Of course, it is ultimately up to you to decide. We recognize that purchasing a new car is a significant investment. We advise you to test drive both brands since we are certain that you will ultimately decide on a Kia. Any way you look at it, it’s unquestionably the better option. Please forgive me, Hyundai.
What distinguishes Hyundai and Kia from one another?
Although Kia and the Hyundai Motor Group are separate companies, Kia Motors is a subsidiary of Hyundai. The distinction between Kia and Hyundai is that each company has its own brand ideologies to build its vehicles in a distinctive way.
Do Kia and Hyundai share parts?
Both Hyundai and Kia have advanced tremendously over the past 20 years, shattering any lingering perceptions of the subpar, inexpensive, and cheery vehicles they both produced in the 1990s. These advancements have been made possible by stunning designs, dramatic quality improvements, and the use of cutting-edge technologies.
Hyundai and Kia are both positioned equally in the market as mainstream brands competing head-to-head with companies like Toyota and Mazda, unlike Volkswagen and its sister brands.
In a rough sense, it may also be said that Hyundai has recently exhibited more conservative designs, while Kia has historically exhibited a more dynamic design language.
With its lineup of N models, including the i20, i30, and Kona N, Hyundai is the only one of the two to have a dedicated performance sub-brand.
Kia offers GT-Line and GT variants, but has used these names in a more haphazard manner.
Although Hyundai and Kia each have a sizable selection of vehicles, neither manufacturer is present in every market.
Micro and light automobiles (Kia Picanto and Rio), medium (Hyundai Sonata), big cars (Kia Stinger), and vans are segments in which one brand currently serves Australia exclusively (Hyundai iLoad).
While Kia is unable to introduce its similar Telluride here due to the lack of a right-hand drive variant, Hyundai also offers the huge Palisade in the large SUV class.
Although Hyundai theoretically only owns a small portion of Kia, realistically both brands share mechanical parts, such as the chassis, powertrain, and infotainment systems.
The interior and external designs, as well as the final technical adjustments made to the cars, are what differentiate them most.
One area where the two manufacturers do differ is in the after-sales service; whereas Hyundai gives a five-year, unlimited-mileage guarantee with five years of capped price servicing, Kia offers a standard seven-year, unlimited-mileage warranty and seven years of capped price servicing.
What country makes Kias?
The three following places are where they are made, is the answer. Seoul, South Korea, is home to the headquarters. the American factory located in West Point, Georgia. Another industrial facility in Slovakia’s Zilina
Can Hyundai service Kia vehicles?
No, the car’s warranty could be revoked if it is still in effect. Although Kia and the Hyundai Motor Group are separate companies, Kia Motors is a subsidiary of Hyundai. The distinction between Kia and Hyundai is that each brand has its own brand philosophies to build its vehicles in a distinctive manner. If your car is not covered by a warranty, you can service it anywhere.
How are Hyundai and Kia vehicles stolen?
Certain types and models of Kia and Hyundai cars from 2010 to 2021 that require mechanical keys rather than key fobs and push buttons to start the car are being targeted by thieves. Young kids are the majority of the burglars, and they hot wire the automobile using a USB cord.
Why are Kia and Hyundai vehicles stolen in such large numbers?
Thieves are aware that some Hyundai and Kia cars and SUVs lack a “key” anti-theft system. Because their keys lack computer chips for theft “immobilizer” systems, an insurance industry association claims that these vehicles are stolen at a rate that is almost two times higher than that of the rest of the auto industry.
Why do Kia’s get stolen?
TikTok made the method for breaking into Hyundai and Kia vehicles famous, and now the automaker provides assistance, but it costs the owners money.
- Due to well-liked social media videos demonstrating how simple it is to takeover specific models that employ a traditional key and lack an engine immobilizer, hundreds of Hyundai and Kia automobiles have been stolen this year.
- Starting today, the new security kit will cost $170. Hyundai owners are anticipated to be required to pay for installation as well, which might cost up to $500. Kia provides free steering wheel locks but does not offer a similar security kit.
- The topic, which began to gain prominence in Milwaukee late last year, has given rise to numerous class action lawsuits.
For those who haven’t had their car stolen, Hyundai has created a $170 solution. Because it’s so simple to steal a car, and criminals are distributing how-to videos on social media, Hyundai and Kia vehicles have become targets in recent months. According to local television station WTMJ, the spate of thefts is so bad that six Hyundai automobiles are often stolen simply in Milwaukee each day.
Hyundai has finally developed a remedy as a result of how terrible the theft epidemic has gotten across the country. Hyundai has now released a brand-new anti-theft security kit that was jointly created with Compustar. A kill switch and an alarm are also included in the kit. According to Hyundai, the kit will be accessible at each of its 820 U.S. dealers and will require about two and a half hours to install. Hyundai is also developing a software patch to address this problem.