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Palisade pricing will be a little less than the Telly

mrmac

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Considering the Telluride supply issues and slow delivery to dealers, this may very well help to reduce the Kia dealerships ability to pursue pricing above MSRP. Competition is a very good thing.
 

kjh8sfk23r8

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Seems like the Pallisade is cheaper on the lowest trim model but 1k more expensive on the highest trim based on the article.
 

westcoastTelly

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Labour and production costs must be significantly less in South Korea to allow vitual parity pricing given shipping them across the Pacifac ...........................then transporting them inland to markets...........
 

mrmac

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Seems like the Pallisade is cheaper on the lowest trim model but 1k more expensive on the highest trim based on the article.
To my knowledge there are no options on the Palisade highest trim. It is essentially a Telluride SXP. Thus, even at the top level it is less expensive. I just had lunch with the owner of El Paso Hyundai and this was his understanding, though it is a bit foggy as they can't even spec one out in the system yet to see if there are any packages. Interesting to me is that they have 30 Palisade inbound to them with nearly 70 people waiting to buy one.... Talk about a couple manufacturers hitting it out of the park!
 

ga1322

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I don't understand how Palisade is considered cheaper than the Telluride? Starting MSRP for base model Telluride is $31,690. Starting MSRP for Hyundai Palisade is $32,595. Of course I see conflicting reports about the starting MSRP for Palisade, but the websites claiming it to be cheaper than Telluride are saying its $32,595.
 

kjh8sfk23r8

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To my knowledge there are no options on the Palisade highest trim. It is essentially a Telluride SXP. Thus, even at the top level it is less expensive. I just had lunch with the owner of El Paso Hyundai and this was his understanding, though it is a bit foggy as they can't even spec one out in the system yet to see if there are any packages. Interesting to me is that they have 30 Palisade inbound to them with nearly 70 people waiting to buy one.... Talk about a couple manufacturers hitting it out of the park!
From the article:
When fully loaded at $47,445, the Palisade is just $910 more than the top-end Telluride, and it has a bunch exclusive features that aren't available on the Kia like the digital gauge cluster.
But, as ga1322 mentioned, the numbers don't seem right at all cause the starting Telluride price they listed is not correct.
 

13_FST

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I was told by the dealer that the Palisade will be slightly more expensive than the Telluride.

I guess we will wait and find out when actual pricing is released.
 

CAsuKiHy

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I was told by the dealer that the Palisade will be slightly more expensive than the Telluride.

I guess we will wait and find out when actual pricing is released.
It’s already been released, it’s in line with T, packaged little differently. Doesn’t make sense to mark it up when this craziness wears off it needs to be in line, cheaper, than major players.
 

13_FST

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It’s already been released, it’s in line with T, packaged little differently. Doesn’t make sense to mark it up when this craziness wears off it needs to be in line, cheaper, than major players.
I'm in Canada, and pricing hasn't been released here. Yet.
 

CAsuKiHy

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I’m sure it’s in line with others, they’re not going to put each other out of business, it will come doesn’t to which you like more and how you want to package it, and it will help keeping Kia in line, especially those greedy dealers.
 

DRK

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Labour and production costs must be significantly less in South Korea to allow vitual parity pricing given shipping them across the Pacifac ...........................then transporting them inland to markets...........
I don't think so. I'm from Korea. Labor cost in S. Korea would be equal or more than Georgia. Rather, I think the recent currency rate, weak Korea Won helped Hyundai lower the price.
I mean the labor cost for Hyundai employee only, not in general. (Edited this line)

Telluride AWD Dark Moss SX Prestige package is $45,490 w/o towing, with towing $46,295 before the destination charge($1,045). Add $395 for premium colors such as Snow White Pearl.
Palisade AWD Limited (Top trim) is $46,400 before the destination charge ($1,045). Hyundai does not charge extra for specific colors. We don't know yet whether towing option is included in Palisade Limited.

In conclusion, we can't say Palisade is cheaper than Telluride. I think the difference is very slight.
 
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YEH

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Labour and production costs must be significantly less in South Korea to allow vitual parity pricing given shipping them across the Pacifac ...........................then transporting them inland to markets...........
Back in 2015, Hyundai union workers’ annual salary hit $87,000.

Due to Korea's militant auto unions, labor is expensive (and they still strike pretty much every year).

That's the reason why GM moved a good portion of production (back when they still owned Opel/Vauxhall) from Korea to Europe (Spain).

And the valuation of the Won hasn't helped either for the past 4-5 years (in contrast, the Yen has been weaker).

Production in Japan is cheaper.

In addition to the respective currency valuations, the Japanese auto-makers have increasingly relied on lower-cost temp workers (not doable in Korea due to the militant unions).

Add to that, Hyundai and Kia's plants in Korea are less efficient than those in the US and elsewhere (slower rate of production).

Hyundai is likely willing to take a smaller profit margin to ensure sales/demand.

They can do that since usually the domestic market pays more.

But the margins are still better than the cars that they have mostly been selling.
 

CAsuKiHy

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Good for their workers, hopefully they can keep standing up for them self’s and keep producing quality product. American could learn a lot from them, maybe when workers start being treated like humans again maybe American cars can be what they used to be before!
 

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