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2014 Kia Soul: Kia expects the new Soul to compete against the likes of the Fiat 500L, Mini Countryman and Nissan Juke

Peter Schreyer, the charming, soft-spoken head of global design at Kia and Hyundai, is thoughtfully explaining the future. He is in the early stages of formulating a plan to get there, to get to a place where car buyers instantly recognize the differences in the two brands and respond well to both, but differently.

The full vision is not in place yet, though. Only in the last year was this German designer – a former top stylist at Volkswagen Group – given responsibility for design at both Kia and Hyundai. He also has the title of president, though that does not carry the same weight as it would within a Western company. Kia has several presidents, each responsible for different activities. But no one has a better handle on what Kia and Hyundai's lineups will look like in five years than Schreyer.

"Of course I've been thinking about it [the future of Kia and Hyundai]," says Schreyer, 59. "Hyundai is bigger and has more variety and more vehicles at the upper end than Kia. Kia maybe is more sporty, but we have to be careful with 'sporty.' This does not mean that Hyundai is not sporty, but Kia is perhaps 'tighter,' if I can put it that way."

Kia and Hyundai are different car brands that are part of the same global Hyundai conglomerate, headquartered in South Korea. Hyundai is bigger and more established – the Hyundai Pony is about to celebrate its 40th anniversary – and while the two share technology and product development activities, the brands are separate and expected to stay that way.

"Yes, the brands are separate – separate with two different philosophies," says Schreyer. "The brands have a different look and different products. The challenge ahead is to avoid similarities in the types of products. Many [products] now are in the same segments."

That's not good. The Kia Sorento crossover SUV, for instance, looks different than the Hyundai Santa Fe, but they share the mechanical bits and pieces underneath and they compete for the same buyers.

Peter Schreyer, head of global design at Kia and Hyundai Kia Kia

Schreyer would like to see vehicles from both brands that share the same underpinnings chase different buyers. Case in point: the Audi A3 and the Volkswagen Golf. Underneath, both are virtually identical in terms of platforms and dimensions, yet "they're not really covering the same segments. They appeal to entirely different buyers." Kia and Hyundai need to pull their "characters" apart in exactly the same way.

That's a tough assignment and not one done successfully by more than a handful of global car companies. Yes, the Volkswagen Group, with its family of brands that includes VW, Audi, Porsche, Skoda, SEAT, Lamborghini, Bentley and more, has done a masterful job of separating its brands, but few others can say the same.

True, BMW and its Mini brand are unique and separate. But for every success of this type there are two or three who have struggled to draw hard lines between brands. Buyers understand that the Lexus lineup represents upmarket Toyotas. Acura, even with its most recent push with new models, is first and foremost the luxury arm of Honda. Ford is trying to differentiate the Lincoln brand from mainstream Fords, but this is a work in progress. And so on.

Schreyer's main job, then, is to differentiate his two brands. No Kia model speaks more clearly to this concept than the 2014 Kia Soul. The original and outgoing Soul was slab-sided, boxy and angular on the outside and chintzy in the cabin – with plenty of hard plastics. In the 2014 version, Kia smoothed out the sheet metal, thinned the grille, gave the car a stronger chin and dressed up the cabin.

Kia expects the new Soul to compete against the likes of the Fiat 500L, Mini Countryman and Nissan Juke; the old Soul was part of a cluster of boxy econocars such as the Scion xB and Nissan Cube – neither of which has been successful in recent years. Not so the Soul, however. Sales have exceeded expectations. Kia designers suggest the Soul will have the longevity and branding impact of the Mini Cooper, not the Cube.

"The new Soul is very unique; it stands out in a regular product range," says Schreyer. "The first Soul had an iconic look; the next generation is the logical successor."

So this is what's possible with global platforms. Keep in mind, the 2014 Soul rides on Hyundai-Kia's third-generation global small-car platform. That architecture also underpins the Kia Forte compact and Rio subcompact and those models share basics with the Hyundai Elantra and Accent. No one would suggest that the Soul is anything but a Kia. Hyundai has nothing like it and if Schreyer's vision holds true, never will. The days of Hyundai and Kia selling vehicles that overlap in type and function are coming to an end. Separate models may be similar in size and nearly identical mechanically, yet they can be very different, he says.

"I think we could probably make more differentiation so that the cars actually serve a different purpose. Maybe one is roomier and one is sleeker and flatter, for example," says Schreyer.

This is the "dramatic evolution" at work within Kia and Hyundai. Kia is heading to a new place, away from branding that positioned it as a sporty but less expensive entry-level brand. Hyundai, which Schreyer suggests has "already reached a level with Volkswagen," has been the refined mass-market player reaching into premium territory with the Genesis lineup and the Equus luxury sedan.

That Hyundai brand position will evolve, too, with smart money suggesting the Hyundai will try to out-Volkswagen Volkswagen. As for future Hyundai designs, Schreyer points to the HND-9 luxury sports car concept. It was shown at this year's Seoul Motor Show and is what Schreyer says he wants to see in next-generation Hyundai models: a cleaner, more organized look that retains the essence of the Fluidic Sculpture design philosophy.

Why believe all this? Schreyer personally has the support of Hyundai's most senior leadership. Schreyer reportedly was lured to Kia in 2006 by Chung Euisun, son of Hyundai Motor Group Chairman Chung Mong-koo. Chung is now vice-chairman. Schreyer, then, reportedly has direct access to the Chung family in control of Hyundai Motor.

What Schreyer wants, within reason of course, Schreyer will surely get.

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