Rapping hamsters and unemployment near a 26-year high are helping Kia Motors Corp. log record sales in the U.S. even as its cars plummet in quality surveys.
Kia’s U.S. sales gained 15 percent this year through October, outpacing General Motors, Toyota and Honda. That rate would push Kia, whose lineup sells for about $8,000 less than the industry average, to its highest annual U.S. sales ever.
South Korea’s second-largest carmaker is defying a drop in quality rankings by J.D. Power & Associates as 9.6 percent unemployment spurs demand for inexpensive cars. Commercials featuring rodents driving the boxy Soul and characters from the children’s show Yo Gabba Gabba! have also raised the company’s profile in the U.S.
Kia’s cars sell for an average of $21,598, compared with the industry average of $29,494, said , an auto-industry data provider based in Santa Monica, Calif.
Kia’s stock has more than doubled so far this year, making it the best-performing member of the benchmark Kospi 50 index.
