In the midst of Kia’s booming sales in Canada, it has emerged that newly ordered vehicles are being stored in Canadian warehouses until 2024. CBC News reports that this is to prevent Kia Canada from appearing overly successful to its parent company in South Korea.
The revelation comes from a purported video conference on November 17 involving a Kia Canada regional manager and dealership reps. CBC News obtained footage of the call where the manager mentions, “Given the global economic challenges, Kia Canada aims to closely monitor both wholesale and retail metrics in 2023 to avoid overachievement.”
This strategy is aimed at ensuring a more favorable marketing budget from the global headquarters for the year 2024. However, the downside is that customers are left waiting for extended periods, with some facing an additional six-week delay due to the decision made in mid-November.
By holding off on deliveries, Kia Canada risks financial strain on dealers and sales teams, many of whom operate on a commission basis. The delay means that their earnings, which are contingent upon finalized sales, will be postponed. CBC News notes that this has led to dissatisfaction among several dealers.
motor1 reached out to Kia Canada for comment but received no reply. Similar requests sent to various Kia Canada dealers about their unofficial sales strategies were also declined, with none willing to discuss the matter.