KIA sales director, Yaser Shabsogh, explains why small businesses should take a new look at the latest Kia Picanto. By editor Ralph Morton.NEW cars from Kia these days invariably make an impact. It’s hard not to take a second look at the company’s compact SUV, the Kia Sportage, for example.
The new Kia Picanto is another striking Kia product, showing a level of confidence that we’ve not been entirely used to from Kia in the past.
Of course, it all helps when you have former Audi designer Peter Schreyer as your design director. The new Kia Picanto is striking, but composed and confident; the interior functional but nicely put together – the quality of the plastic finish is consistent and of high quality, too.
Little wonder, then, that Yaser Shabsogh – Kia’s sales director – thinks the new Kia Picanto should have lots of appeal for small businesses and business car managers of SME fleets.
Of course, any sales director believes a car will have appeal – they have to sell the things, after all. But having driven the new Picanto, I can see why Yaser Shabsogh has such confidence in the new Kia Picanto.
“I expect our mid-range level Picanto 2 trim to have the biggest appeal, split between those business buyers going for the 1.0 litre engine and those choosing the 1.25 Eco Dynamics model,” says Yaser.
“For a small business looking for a new compact car that has the attributes of good fuel economy, low CO2 emissions, high levels of safety and peace of mind with our warranty terms, then the new Picanto has it all.
“The new Picanto also has low CO2 emissions and a low P11d price so it’s very good on company car tax,” adds Yaser.
Low emissions and 10% company car tax
That’s certainly true. The 1.0 litre has emissions of just 99g/km and in 2 trim, a list price of L8,945: a 10% company car tax benefit in kind banding for the next three years gives the new Picanto a benefit in kind of just L895 a year. Not bad for such a grown up feeling car.
But it’s not just the low company car tax that will appeal to small businesses, continues Yaser. Companies benefit from low running costs, too.
“The overall cost of Picanto ownership is also very attractive. While we don’t have the predicted residual values for the new Kia Picanto, we believe these will be good,” continues Yaser.
“In addition the cost of servicing has reduced while the servicing intervals have increased. It makes the Picanto much cheaper to own. For the first service – either at the end of one year or 20,000 miles, the service cost has reduced by 40%. That’s a substantial reduction.”
According to Kia figures, with an average garage labour rate of L68 per hour, the cost of the first three services with the 1.0-litre engine will be only L328 – averaging less than L110 a year – inclusive of VAT. With the four-cylinder 1.25-litre engine, maintenance costs are a fraction higher at L347 – or just over L115 a year.
“The new Kia Picanto really keeps us competing in this sector – and improving it I would say,” adds Yaser. “At the moment, the Ford Ka is our biggest competitor, but everyone wants to come into this city car sector – so we must stay competitive.”
Future Kia business cars
However, the Picanto is not the only new product for small businesses in the Kia product arsenal this year.
A new Picanto three-door version is due later this year. It will, says Yaser, have a different personality than the five-door, with a sportier appeal.
And there’s more, continues Yaser: “Looking forward we have the Kia Rio supermini arriving in September and our new Ford Mondeo competitor – the Kia Optima – arriving either late 2011 or early 2012.
“So there’s plenty of new cars arriving from Kia that I’m sure will suit small businesses and SME car fleets.”
If they’re as good as the new Kia Picanto, then the choice of really good quality cars for business car managers is truly expanding. In all the right ways.
