In March it was reported that Kia, looking to expand its lineup, was planning to develop a pickup for the American market. Based on the next-generation, unibody Sorento SUV, the truck would be similar in size and layout to Honda's Ridgeline. Now, however, it looks like the Korean automaker has changed its mind -- according to Hyundai CEO Kim Dong-Jin, plans for the U.S. pickup have been scrapped.
The small truck, which would have featured front-wheel drive and V-6 power, was expected to arrive in showrooms two years after the new Sorento and be built at Kia's new manufacturing plant in West Point, Georgia. However despite it being smaller and more efficient than the full-size F-150 or Silverado, executives from Hyundai looked at the slowing demand for trucks and decided to cancel the project. The automaker had only planned to sell the vehicle at relatively low volumes, but Kim explained that with climbing oil prices "now is not the right time to produce a pickup truck."
The new 2010 Sorento is still on schedule, and Kia expects production to begin at the Georgia plant in November 2009. Without the pickup there will be room for another model to be built at West Point, and the automaker says this will most likely be the next Optima. There is also the possibility a Hyundai car could also come off the plant's assembly line, as long as it has a compatible platform.
With the national average gas price at $3.64 today, full-size truck sales are definitely hurting. Some automakers have resorted to deep discounts while others are cutting production, and owners have discovered their vehicles are quickly losing value. Though the situation could possibly help sales of smaller, more fuel-efficient trucks, the market may also collapse entirely, and no doubt Hyundai/Kia doesn't want to take that risk. Motor Trend's Todd Lassa recently learned of the automaker's decision to put their pickup on hold, along with a planned convertible. Yet despite this caution, he also discovered that the company is debating the launch of their very own luxury brand to rival Lexus, with a decision due in the next three to four years.
Source: Automotive News (Subscription required)