July 2016 J.D. POWER Special Power Report Kia Leads All Industry Brands in 2016 Initial Quality Study Soul and Sportage Receive Initial Quality Awards

ia ranks highest among all automotive industry nameplates in the J.D. Power 2016 U.S. Initial Quality StudySM (IQS). This significant milestone comes just one year after Kia ranked K In ranking highest second overall in the 2015 IQS. It also represents the first time in among all brands 27 years that a non-luxury brand has led the industry in the U.S. industry-wide, Initial Quality Study. In addition to its industry-leading performance Kia earns an this year, Kia produces two award-recognized models: the 2016 overall score of 83 Soul in the Compact MPV segment (second consecutive year) and problems per 100 the 2016 Sportage in the Small SUV segment. vehicles (PP100) in the 2016 U.S. IQS, which exceeds industry average by 22 PP100 and represents a 3-point improvement 2016 NAMEPLATE IQS RANKING from 86 PP100 in 2015. Problems per 100 Vehicles (PP100) • Lower Score = Higher Quality The 2016 U.S. IQS evaluates eight problem categories that Kia 83 Porsche 84 comprise initial quality: Hyundai 92 • Exterior 93 BMW 94 • Driving Experience Chevrolet 95 • Features/Controls/Displays (FCD) Buick 96 • Audio/Communication/Entertainment/Navigation (ACEN) Lexus 96 • Lincoln 96 • Heating, Ventilation, and Air Conditioning (HVAC) 101 Ford 102 • Interior GMC 103 • Engine/ Infiniti 103 104 The IQS measures both defects/malfunctions and design- Industry Average 105 related problems—features that may be operating as intended but are poorly located or difficult to use. As a brand, Kia once Other nameplates included in the study (in alphabetical order): Acura, Audi, Cadillac, Chrysler, Dodge, , Honda, Jaguar, Jeep, Land Rover, , Mercedes-Benz, MINI, again improves substantially year over year. Mitsubishi, Ram, Scion, smart, Subaru, and Volvo. Continued > Source: J.D. Power 2016 U.S. Initial Quality StudySM (IQS) KIA BRAND HISTORICAL IQS RANK PERFORMANCE 2016 marks the first time in 27 years In just 6 years, Kia has improved its overall IQS ranking from below industry that a non-luxury brand has led average to leading the industry 2 1 all industry nameplates in the 6

U.S. Initial Quality Study. 12 10 15 17 The U.S. Initial Quality Study, now in its 30th year, examines 18 18 problems experienced by new-vehicle owners during the first 90 24 days of ownership. Initial quality is determined by the number of 25 problems experienced per 100 vehicles (PP100), with a lower score 30 31 reflecting higher quality. The study is also an early indicator of Kia IQS Nameplate Ranking 34 35 long-term vehicle quality. 36 37 37 ‘99 ‘00 ‘01 ’02 ‘03 ’04 ‘05 ’06 ‘07 ’08 ‘09 ’10 ‘11 ’12 ‘13 ’14 ‘15 2016 IQS Study Year Initial quality is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality. Source: J.D. Power U.S. Initial Quality StudySM (IQS)—1999-2016

© 2016 J.D. Power and Associates. All Rights Reserved. J.D. POWER Special Power Report Kia July 2016

For a second consecutive year, the Soul, Kia’s unique multi- 2016 COMPACT MPV IQS RANKING purpose vehicle, is the brand’s highest-performing model in the Problems per 100 Vehicles (PP100) • Lower Score = Higher Quality Initial Quality Study. With a score of 72 PP100 (problems per 100 vehicles)—an improvement of 5 PP100 from last year—the 72 2016 Kia Soul ranks highest in the Compact MPV segment and Segment Average 81 is among the 10 highest-scoring models industry-wide. The Soul 114 has also received an IQS segment award four times since 2012, and for a second consecutive year in 2016. Additionally, the Soul Ford C-Max 131 outperforms the Compact MPV average (81 PP100) by 9 PP100. Source: J.D. Power 2016 U.S. Initial Quality StudySM (IQS) Also, the Soul has both the fewest number of design-related problems and defect/malfunction problems in the Compact MPV segment. Furthermore, the Soul improves significantly year over year in the Audio/Communication/Entertainment/Navigation category, with a 6.1 PP100 improvement.

The Soul has both the fewest number of design-related problems and defect/malfunction problems in the Compact MPV segment. 2016 Kia Soul

The Sportage, Kia’s 5-passenger small SUV, has steadily The Sportage has the fewest number improved its performance in the Initial Quality Study. With a score of 85 PP100 in the 2016 IQS—outperforming segment average by of design-related problems 33 PP100—the 2016 ranks highest in its segment in its segment. and receives an award for the third time in four years. Further, the Sportage has the fewest number of design-related problems in its segment. Additionally, the Sportage improves significantly year 2016 SMALL SUV IQS RANKING over year in the Audio/Communication/Entertainment/Navigation Problems per 100 Vehicles (PP100) • Lower Score = Higher Quality category, with an 8.4 PP100 improvement. Kia Sportage 85 93 Buick Encore 95 100 Chevrolet Trax 111 Subaru Crosstrek 117 Segment Average 118

Other models included in the segment (in alphabetical order): , Honda HR-V, Jeep Compass, Jeep Patriot, Jeep Renegade, Mazda CX-3, MINI Countryman, and . Source: J.D. Power 2016 U.S. Initial Quality StudySM (IQS) 2017 Kia Sportage

About the Study: The 2016 U.S. Initial Quality Study is based on responses from more than 80,000 purchasers and lessees of new 2016 model-year vehicles surveyed after 90 days of ownership. The study is based on a 233-question battery organized into eight problem categories designed to provide manufacturers with information to facilitate the identification of problems and drive product improvement. The study was fielded from February through May 2016. Find detailed information on vehicle quality, as well as model photos and specs, at www.jdpower.com/quality.

The Special Power Report • Published by J.D. Power • Published July 2016 © 2016 J.D. Power and Associates. All Rights Reserved. Reproduction of any material contained in this publication, including photocopying of this publication in whole or in part, is prohibited without the express written permission of J.D. Power and Associates. Advertising claims cannot be based on information published in The Special Power Report.