Is it potential to have too many new automotive gross sales? Kia Canada thinks so, a minimum of in keeping with a latest report from CBC Information. Amid report gross sales for the automaker comes phrase that new automobiles ordered by Canadian prospects are being withheld at staging areas within the nation till 2024. The rationale? Kia Canada does not need to look too profitable within the eyes of the company workplace in South Korea.
The information stems from an alleged video name that occurred on November 17 between a Kia Canada regional supervisor and quite a few dealership representatives. CBC Information obtained footage of the decision, during which the supervisor says, “With the worldwide slowdown, Kia Canada needs to manage wholesale and retail efficiency in 2023 to not present excessive overachievement.”
42 Photographs
Per the report, decrease yearly gross sales will assist Kia Canada safe a greater advertising finances from the worldwide workplace for 2024, which is outwardly the reasoning behind this technique. The flip aspect is that prospects who ordered a automotive are left ready weeks or months. The choice reportedly occurred in mid-November, that means an additional six-week delay for some would-be patrons. All within the identify of manipulating 2023 gross sales information.
The transfer may additionally take a monetary toll on sellers and gross sales workers, lots of whom are commission-based. Since buyer orders and deposits do not equal gross sales, paychecks often do not come till the paperwork are signed and the automotive is delivered. In keeping with CBC Information, there are various sellers upset by this, understandably so.
Kia has but to problem a press release on the scenario. We reached out to representatives of Kia Canada with a number of questions and a request for a press release, however have not acquired a response. We additionally contacted a number of Kia Canada sellers, requesting to talk off-the-record in regards to the gross sales coverage. All declined to remark in regards to the scenario, some urgently turning us down. We contacted Kia’s international public relations division which has but to reply.
As for the US, there is no indication {that a} comparable coverage is in impact. Nonetheless, we have reached out for a affirmation simply to make sure. We’ll you’ll want to replace this text as extra info turns into obtainable.
How profitable is Kia Canada today? There aren’t any official press releases on the corporate’s Canadian media web site concerning latest gross sales information. They do exist, nonetheless – an announcement from the automaker on November 29 said Kia Canada set an all-time gross sales report with 79,199 models offered. That is annual gross sales, which is spectacular contemplating it does not embody something from December.
It would definitely be fascinating to see how the year-end statistics look. If this alleged withholding coverage is being enforced, we would anticipate December gross sales to be fairly slim for Kia Canada.
