"Go Public has discovered that recently manufactured Kia vehicles are not being distributed to dealerships in Ontario, and there are indications that this is happening on a broader scale throughout the country. Instead, these cars are being stored at a facility located 30 kilometers south of Kitchener, Ontario, and reportedly at similar locations across Canada. (Photo Credit: Patrick Morrell/CBC)"
In a surprising turn of events, new Kia vehicles recently imported to Canada are sitting idly in a storage lot in Wolverton, Ont., frustrating customers who have waited for months, and in some cases, well over a year, for their eagerly anticipated cars.
The vehicles are intentionally locked away, not reaching Kia's Ontario dealerships, and reportedly many others across the country. This withholding strategy has raised eyebrows and sparked controversy, as it appears to be part of an unconventional plan by Kia Canada to manipulate the number of sales in the final weeks of the year.
In a video obtained by Go Public, Kia's central region manager, Vince Capicotto, revealed the scheme during a Nov. 17 video call with over 100 dealership representatives in Ontario. He acknowledged that this strategy, mandated by top Kia executives, would be implemented nationally.
Rather than delivering all the vehicles to dealerships, Capicotto explained that only a portion would be released, while the rest would remain in various compounds until the new year. The rationale behind this decision, as detailed in the call, was to avoid projecting excessive success to Kia's headquarters in Korea.
Capicotto expressed concerns that overachievement in sales could lead to a reduction in resources allocated to Kia Canada for 2024, potentially hindering a successful year ahead. This move is an unusual one for Kia Canada, as conventional end-of-year strategies usually aim to boost sales, not curtail them.
Kia Canada has reportedly reached its 2023 target of selling 84,000 vehicles, and the fear is that surpassing this target may result in a cutback on marketing support from headquarters in the new year.
While such tactics are not unheard of in the automotive industry, Shari Prymak, a senior consultant at Car Help Canada, commented that they typically serve to increase sales, making Kia Canada's strategy stand out.
Capicotto did not respond to interview requests from Go Public, and a spokesperson for Kia Canada declined to be interviewed. In a written statement, the spokesperson did not directly address the reported strategy but emphasized the company's commitment to ensuring the "timely delivery" of customer orders in 2023 and beyond.
During the video call, Kia employees voiced their displeasure in the chat box, with one employee expressing disappointment at being penalized for selling too many vehicles. Another emphasized the lack of respect for both dealers and customers.
One Ontario Kia manager, speaking anonymously, highlighted the financial burden on dealership staff, including franchise owners, sales personnel relying on commissions, and those in parts and service departments feeling the ripple effect.
Customers have already faced long wait times for Kia vehicles, making this recent decision to deliberately withhold cars a cause for concern. Some customers, like Brian Olmsted, who put down a deposit for a Kia EV6 in June 2022, are growing increasingly frustrated. Olmsted, driving a 17-year-old car, finds the move disappointing and questions the ethics of delaying deliveries to manipulate sales figures.
Despite potential reasoning from Kia Canada's perspective, critics argue that making customers wait even longer when they've already endured extended wait times is not the right approach. The impact of Kia's supply shortage is expected to persist, leaving customers and dealerships grappling with frustration and uncertainty.
