Kia: The Other Korean Car Company

When the 2011 Hyundai Sonata and Hyundai Tucson both debuted at the recent Los Angeles Auto Show, one thing became clear: The biggest obstacle likely to slow Hyundai's ascent in the U.S. market is Hyundai itself.

It's a combination of two things, the first being Hyundai's new design strategy. Both the Sonata and the Hyundai Santa Fe feature a much more aggressive approach to exterior design than Hyundai has shown in the past. Sheet metal creases and character lines abound, and the front-end treatments, while different, are quite striking. I particularly like the way the hood and the headlights are on two different planes on the Sonata, which helps give the car a very sporting stance when viewed head-on. On the Tucson, the look is much more flowing, as befits Hyundai nomenclature: The company's new design language is called "fluidic sculpture."

But I have to wonder if Hyundai is pushing ye olde envelope a bit too far with this look. Design can be a tricky thing. Toyota has long been known for producing conservative-looking vehicles, and that hasn't seemed to affect its sales very much. In fact, at this stage in the game, you have to wonder if part of Toyota's success comes because of — not despite — the fact it doesn't take risks with its designs.

Which brings us to another factor that may slow Hyundai's growth, and that's the growth of its Kia division. As Hyundai has moved upmarket and become firmly entrenched in the motoring mainstream, Kia has taken over its sibling's former positioning as a low-cost brand that offers high-quality basic transportation. And while Hyundai's success has tended to obscure that of Kia, the latter has been putting up some impressive statistics on its own.

November numbers were up about 18.3 percent on sales of 17,995 units, with overall sales on the year standing at a very impressive 279,015. For comparison's sake, Subaru sales were at 16,998 in November, and Volkswagen moved 16,250 units last month, but neither of these two automakers have yet cracked the 200,000 mark in terms of annual sales in 2009.

A big chunk of this success can be attributed to the Kia Forte (and Kia Forte Koup), the company's No. 1 seller. It's aimed at cars like the Toyota Corolla and more than hits the bull's eye. Comparing the two, the Forte sedan has a bigger engine, gets better gas mileage, offers more interior room and offers an extra cog in the gearbox — the Kia is available with a six-speed manual, the Corolla isn't. The Forte also undercuts the Corolla's price by $1,655, and it's important to note that the vehicle is much better looking in person than in photos.

The Koup offers another unique Kia advantage, essentially owning the sub-$20,000 coupe segment. (I suppose Honda Civic fans may have an argument here, but pickings are mighty slim in this niche.)

Kia is doing well in the box-on-wheels segment, too, with the Kia Soul easily outselling the Scion xB, Nissan Cube and Honda Element. The Soul is also less expensive than the competition and bests both the Scion and the Honda in terms of fuel efficiency. The Cube gets slightly better mileage, but in a noticeably smaller package.

The Soul and the Forte represent a sort of demarcation between the old-style Kia and the new, best shown, again, in terms of styling. The new Kias are much more dynamic, but they avoid the over-the-top cues found on the new Hyundai products.

The Kia Sorento shows the difference. The current generation is a slab-sided affair that borders on the invisible. The new one throws a few wrinkles into the sheet metal, blacks out the C-pillar (the one separating the rear doors from the cargo area), adds some black cladding, and uses a more angular hood and front end to really grab customers' eyeballs. It's also going to feature a sticker price about $1,500 less than the outgoing model.

Kia is using some proactive strategies to broaden its vehicles' appeal as well. It's standard operating procedure for OEMs to offer sporty trim levels on even its compacts, but Kia goes a different way with the Forte, providing a special high-efficiency trim that pushes the car's EPA rating up to 27/36/30 in the EPA city/highway/combined fuel ratings. With the new Sorento, Kia has moved from body-on-frame construction to a unibody chassis, making the vehicle a crossover, and it's playing up the fact that the Sorento is entirely designed and made in America. It's even become the official vehicle of the NBA.

If Kia can transform the rest of its lineup the same way it's transformed the Sorento, Hyundai just might find its stiffest U.S. competition right in its own corporate backyard.