zzdcar
Home
/
Reviews
/
Culture
/
Kia Vastly Underestimated Demand For The Telluride SUV
Kia Vastly Underestimated Demand For The Telluride SUV-July 2024
2024-02-19 EST 22:12:39

Image for article titled Kia Vastly Underestimated Demand For The Telluride SUV

Kia’s initial production plans for its new three-row SUV were 60,000 units built per year. With actual production capacity now peaking at 100,000 units and still not enough cars to meet demand, Telluride buyers are going to have to wait.

My colleague Tom McParland, who is also an automotive purchasing consultant, has been and its sibling the Hyundai Pallisade for months. Both strangely remained immune to the steep deals other automakers are offering in the wake of the COVID-19 pandemic and its economic impact.

Due to the economic impact of coronavirus many areas are under stay at home orders, which means car

And now we may know why the Telluride pricing has remained relatively inflated: Kia can’t build them fast enough to meet demand, reports:

At the end of June Cars Direct reported there were barely 700 Tellurides listed for sale nationwide while there were over 20,000 Ford Explorers and 12,000 Honda Pilots on dealers’ lots.

James Bell, director of communications for Kia, said he has heard this story on a weekly basis. “This is the most (Kia) could turn out, and it can’t be built somewhere else,” Bell said.

When the Telluride debuted in February 2019, Kia set an annual production capacity of 60,000 Tellurides at its only U.S. production facility in West Point, Georgia, where certain trims of the Sorento and Optima are made as well..

“We blew past that and ramped it to 100,000 units,” Bell told The Car Connection. Meeting demand “is going to be tight even at 100,000, but it’s the best we can do.”

On top of that, the West Point, Georgia facility was due to the pandemic. When it opened, it was down to just one shift, with a slow ramp up to now three shifts. The automaker also cited parts shortage from a Mexico supplier—many of which are still suffering their own recovery from the virus—as a contributor to SUV shortages.

The Car Connection story details one couple’s struggle to take delivery of the Telluride they already ordered nine months ago. When they decided to order it back in October, they were given a five-to-six month wait time, which is almost absurd on its own for a rather pedestrian SUV. They’ve now been told it will be another five months, so over a year, since they ordered their Telluride.

Before the outbreak of COVID-19 earlier this Spring, Kia claims the dealer lot turnover rate for the Telluride—so how long one is parked on the lot before it sells—was just 11 days, which is way lower than the average of 60 days for vehicles considered strong sellers.

If you can find a Kia Telluride or Hyundai Palisade on a dealer lot, consider yourself lucky. If you can find one without a markup, or better yet with any sort of discount, then you better act fast. Is there a market for flipping $50,000 family SUVs?

Dealer markups are usually a classic case of supply and demand. On specialty and performance cars…

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Culture
I Can't Get Enough Of This YouTuber Who Builds Tiny, Fully Functional Scale-Model Cars
I Can't Get Enough Of This YouTuber Who Builds Tiny, Fully Functional Scale-Model Cars
I love tiny, of . I have a that is roughly half the size of a normal cat, and she’s perfect. I own a 2013 , which is like the miniature version of a normal-sized vehicle (at least here in Texas) — but beyond that, I also own a Hot...
Jul 21, 2025
2024 Kia EV9: What Do You Want To Know?
2024 Kia EV9: What Do You Want To Know?
At long last, we are about to get behind the wheel of for the first time. Sure, , and sure, , and sure , but hey — what can you do? Anyway, before we get behind the wheel of this three-row electric beast, we want to know what you...
Jul 21, 2025
Watch ABS Fail When MotorWeek Tests A 1997 Chevy S-10
Watch ABS Fail When MotorWeek Tests A 1997 Chevy S-10
MotorWeek’s is some of the on the internet. The long-running automotive news magazine has a treasure trove of tests after being on the air for over 40 years. Where else can you find detailed instrumented testing of long-forgotten cars like the or a ? MotorWeek’s recent Retro Review upload is...
Jul 21, 2025
I Entered My Lifted Miata In A Real Off-Road Race, Here's What Happened
I Entered My Lifted Miata In A Real Off-Road Race, Here's What Happened
I have two automotive loves: The first is the Miata, the second is off-road racing. For a while I raced air-cooled Volkswagens in the deserts of California and Nevada and I was lucky enough to co-drive in a class 11 stock bug in the Baja 1000 a few years...
Jul 21, 2025
Toyota Is Moving A Prewar 700-Ton Press Machine Halfway Around The World
Toyota Is Moving A Prewar 700-Ton Press Machine Halfway Around The World
closed its São Bernardo Plant in November 2023, marking the end of its first overseas production facility. The closure caps off a period of continuous car production in São Paolo, , lasting over 60 years. The plant was home to a Komatsu 700-ton press that predates itself. And now...
Jul 21, 2025
Subaru Had It Right All Along
Subaru Had It Right All Along
When first came to the United States, it sold small funky cars that were decidedly un-American. As the company grew its own identity and became more established in the U.S., it became the first automaker to offer an all-wheel-drive passenger car in 1975. Subaru was also an early-adopter of...
Jul 21, 2025
Copyright 2023-2025 - www.zzdcar.com All Rights Reserved