In an unexpected move, Kia Canada is reportedly holding off on delivering new vehicles ordered by Canadian customers until 2024. This decision appears to be motivated by a desire to control wholesale and retail performance in 2023, preventing the company from looking overly successful in its corporate office in South Korea.
Details of this strategy emerged from a leaked video call on November 17, involving a Kia Canada regional manager and various dealership representatives. The manager stated that amid a global slowdown, Kia Canada aims to avoid showing high overachievement in 2023 to better negotiate a favourable marketing budget from the global office for the following year.
While this approach might benefit Kia Canada in terms of budget allocation, it has raised concerns and criticisms. Customers who placed orders now face delays of weeks or even months, and dealers and sales staff, often working on commission, may experience financial consequences. Since customer orders and deposits don’t translate to sales until the vehicle is delivered, this decision could impact their income.
Kia Canada achieved an all-time sales record in November 2023, selling 79,199 units. The alleged withholding of vehicles is likely to affect year-end statistics, particularly December sales, as the company navigates this unconventional strategy.
As of now, Kia has not officially addressed the situation, leaving many questions unanswered and raising curiosity about the impact on both customers and dealerships.
