Vehicle deliveries were postponed until 2024
Amid record Kia sales, it has become known that new cars ordered by Canadian customers are being held in warehouses in the country until 2024. The reason is that Kia Canada does not want to appear too successful in the eyes of the corporate office in South Korea, as reported by CBC News.
This news stems from an alleged video call that occurred on November 17 between a Kia Canada regional manager and dealership representatives. CBC News obtained a video recording of the call in which the manager says: «Amid the global downturn, Kia Canada wants to monitor wholesale and retail performance in 2023 to avoid high performance.».
Lower annual sales will help Kia Canada secure a better global office marketing budget for 2024, which appears to be the reason for this strategy. The downside is that customers who order a car are forced to wait weeks or months. The decision was reportedly made in mid-November, meaning an additional six-week delay for some potential buyers.
The move could also cause financial losses for dealers and sales staff, many of whom work on commission. Because customer orders and deposits do not equal sales, paychecks typically don't arrive until the paperwork is signed and the vehicle is delivered. According to CBC News, many dealers are upset about this.
Motor1 contacted Kia Canada representatives with a request for a statement, but received no response. Inquiries were also sent to Kia Canada dealers asking for off-the-record sales policies. Everyone refused to comment on the situation.