RoadTest: Kia Rio: It's a story of Asian shadows. For years the Korean car industry - indeed most of its industries - has lived under the shadow of its neighbour Japan. While marques such as Toyota cut a swathe through the European and US markets, the Koreans piggy-backed on their success, selling mostly on the value propositions. That, after all, was the strategy used by the Japanese to get their original foothold.
Even within the Korean marques, it's been a case of life under the shadow of a bigger player, with Kia having to fight its corner beneath the dominance of its sister brand Hyundai.
However, it's time for the Koreans to move out of the market segment where price is all-important. It's not just because there's more profit to be made at the higher end in each segment, but also because of a new creeping shadow that could well engulf both them and some of the Japanese brands: China.
When the Chinese brands finally arrive in the next seven years or so, they are likely to make even the most budget-priced models of today look expensive. So competing on price is no longer going to be a viable option. The Koreans know, therefore, they must follow the Japanese up the quality route. And quickly.
Hence the significant investment in design centres in the US and Europe. There's also been a slight shift in the mantra at the Korean brands. Where once the oft-spoke line at every press conference was about becoming a top five global car firm by 2010, the new message seems to be about rising up the reliability and quality ratings. Where once it was the financials that dominated Korean management minds, now it's the JD Power reliability ratings. As one European executive for the Koreans put it: "Before we were concerned with good value pricing, now we want people to be proud of their purchases. We want them to take pride in owning a Korean car."
Whether the Rio fits that particular goal remains to be seen. Certainly it's an improvement on its predecessor, the more boxy saloon and estate/hatchback.
The first thing to note about it is the lack of eyecatching appeal. Kia has done really well with some of its models, particularly the butch Sorrento SUV and the cheeky little Picanto. Both are designed to take on the major players in their respective markets, and buyers of either don't feel they are opting simply for a car based on price.
The new Rio, on the other hand, lacks the panache of competitors like the 206, or the modernist looks of the Micra and Yaris. In that regard, it's going to have to fight its corner based on the value proposition.
The Rio is shorter than the previous hatchback version, though in fairness it was always more of a mini-estate. As a result normal boot space is virtually halved. That will certainly disappoint current Rio owners but it won't upset newcomers to the model.
There are also changes under the bonnet. The new Rio gets a 1.4-litre engine, up from the previous 1.3-litre version and much more refined. Sound-proofing plays its part, the car being much quieter than it was before. Performance has also been improved, and though it could never be described as racy it does handle everyday driving with aplomb.
Steering is a little light, particularly at speed, and the ride on bumpy roads could be better. All in all, it just doesn't feel as sharp as some of its rivals, though the 1.4-litre unit has the beating of many of its smaller rivals.
The interior trim has also been reworked, though it's still some way off the competition in terms of the plastics used. Sitting inside, you still feel as if you've taken a step back in time, though the timelag has reduced from the previous model. Switchgear is still a little dated and will look even more so as competitors such as Toyota's Yaris take on more digital looks and modern youthful trims.
In the back, the most noticeable failing is in rear leg room, which is quite tight for adults. That said, none of its competitors are exactly voluminous in this regard either. The seats are also more benchlike than comforting and the stereo system is still a little fiddly.
Overall, it's still not as sophisticated as its supermini rivals, but it's a big improvement on its predecessor.
The previous Rio was something of a halfway house: a saloon car in the supermini category that could easily have featured in the regular family hatchback market, particularly in its estate guise.
So how does the new model fare against the competition? Well, it doesn't turn heads the way the 206 continues to do.
The arrival of a new Yaris in the coming months moves the segment into more digital and space-age styling and that will leave the Rio looking even more dated. That said, there's a market out there for more conservative looks.
It's long been argued that, while the marketing departments concentrate on targeting young twentysomethings with their supermini hatchbacks, many of the owners in this category are closer to the sixty-something age bracket.
Some of those who thought the Micra too retro may find the new Yaris a little too daring as well. That's where the Rio comes in. For them it might offer the sort of traditional look they seek.
Pricing is also quite strong, and the level of standard trim adds to its advantage over some rivals. Our test car, the EX priced at €15,299, included 14-inch alloy wheels, front fog lights, air conditioning and front and rear electric windows.
The new Rio will not take Kia out of the shadows nor change the market perception of them as being a budget buy in this segment, but it's a step in the right direction. With Kia the message seems to be: watch this space.