It's not all doom and gloom in the new car world. While sales are down in general, there are some bright spots on the chart - with Kia chief among them.
The South Korean company is enjoying a period of rapid and sustained growth in both sales and market share, while the competition struggles. The combination of the weak South Korean won, a steady stream of affordable new product and growing consumer awareness of the brand has resulted in year-to-date sales growth of 6.2 per cent over last year. April was the best month the company has had in Canada - sales were up 9.2 per cent in a market that was down 20.5 per cent overall. Global sales were up 8.4 per cent last year, helping the Hyundai/Kia pair become the fifth-largest auto maker in the world.
Kia has added new production facilities in China, Slovakia and the United States in the past two years and has posted increased revenues and both operating and net profits.
And there is no sign of letup. Kia is introducing the 2010 Forte this month as a replacement for the Spectra in the largest segment of the Canadian market. Almost 50 per cent of all cars sold in this country are compacts; there are more than 20 vehicles competing for a slice of this pie, with the Honda Civic, Mazda3 and Toyota Corolla accounting for 40 per cent of the segment.
Kia forecasts that the new Forte has so much to offer it will claim fifth place in this segment within a year. A lofty goal, but one it would be unwise to bet against. The Forte is clearly superior to the outgoing model in virtually every respect - except price. Kia kept that magic number the same while managing to add more than $2,000 in standard equipment.
Three trim levels are available and, at each point, the Forte holds a price advantage of about $2,000, according to Kia officials - a significant number in this cost-conscious market.
Having already established that the quality of its vehicles has reached top-tier status, seeing steady improvement in retained value and with its financial house in order, the next step in the evolution of this young company is design.
That started with the funky Soul now making its way onto our streets in numbers and continues with the four-door Forte, with two- and five-door versions to follow within the next year.
Kia figures Canadians are looking for both quality and value, but that they want more. It says the Forte offers that - more safety, more power, better handling, improved fuel efficiency, more space and even better pricing.
The newcomer measures within a few millimetres of the Civic, Corolla and Mazda3, but offers more shoulder room in front and back seats and the biggest trunk in the segment.
It has a pair of new engines that offer more power than the equivalent competition, yet goes toe-to-toe with them when it comes to fuel economy.
And it has virtually all of them nailed when it comes to a bottom line. Standard equipment on the $15,695 entry-level Forte LX includes six airbags, ABS, four-wheel disc brakes, power windows, power locks, power heated mirrors and Bluetooth wireless connectivity.
Step up to the $17,995 EX and you add air conditioning, remote keyless entry, electronic stability control, alloy wheels, heated seats, windshield wiper de-icer, tilt and telescope steering wheel and an audio upgrade.
Want more? The $20,995 SX model gets larger alloy wheels, automatic climate control, a bigger engine, one more gear in the transmission, leather interior, power sunroof and more.
And automatic transmission adds $1,200 to each model's price tag.
This is a very well-developed small car, one that does not have you thinking of the money you saved. Quiet and composed over a variety of surfaces, it offers an unexpected combination of ride and handling at this and much higher price points.
The new Theta engine line makes its first appearance here, replacing the Beta used previously. Both engines are smooth and quiet under normal operation and growl nicely when pressed. Obviously the larger 2.4-litre engine has more poke, but the 2.0-litre version is the most powerful in the class.
The one weak point is the fact you have to get into the top-grade model to get the five-speed automatic. The four-speed offered in the other two trim levels is dated in a 2010 model.
Other gripes: Kia should apply a little more sound-proofing to the inside of the door and fender panels to improve sound quality when you slam a door, and electronic stability control is not available in the base model. Other than that, there are few nits to pick.
There is a serious new player in the compact segment.
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2010 KIA FORTE
Type: Compact four-door sedan
Price: $15,695-$20,995
Engine: 2.0-litre, DOHC, four-cylinder/2.4-litre, DOHC, four-cylinder
Horsepower/torque: 156-hp/144 lb-ft for 2.0-litre
173-hp/168 lb-ft for 2.4-litre
Transmission: Five-speed manual or four-speed automatic/six-speed manual or five-speed automatic
Drive: Front-wheel-drive
Fuel economy (litres/100 km): 8.3 city/5.8 highway (2.0-litre with manual); regular gas
Alternatives: Honda Civic, Hyundai Elantra, Mazda3, Toyota Corolla
