Bill Porter, 53, has been president and chief executive officer of Kia Canada since January, 2004, after spending two years as vice-president and chief operating officer.

Before joining Kia Canada, he had worked at Nissan Canada, Hyundai Canada and Honda Canada. At each, Porter's direction was to build the division and increase sales.

He is married and has a son and a daughter.

Vaughan: Tell me this, why does Canada need both Hyundai and Kia? Kia is controlled by Hyundai and as far as the cars are concerned, I generally can't tell a Kia from a Hyundai unless I get up close and read the name. Why not consolidate on one brand and stop confusing consumers like me?

Porter: As with any evolution the Hyundai and Kia makes have only been working together since 1999 and prior to that competed for the same consumer. You will see further differentiation in product, features and communication as we continue down the path of brand differentiation between these two nameplates. As with any organization that tries to incorporate synergies there can occur situations of product overlap but on the whole there is differentiation. Fine examples can be shown in what the Volkswagen group has done with SEAT and Skoda. We understand the need for differentiation between brands and we will do so as we work to be one of the top five manufacturers by 2010.

Vaughan: But you're cannibalizing each other's sales. In the United States in March, Kia sales went up 11 per cent and, guess what, Hyundai's went down 6 per cent.

Porter: That could be said for any manufacturer that has two brands in the consumer market today -- if Honda Civic sales go up, typically Acura EL sales go down; if Chevrolet Cavalier sales go up, Pontiac Sunfire sales go down. In the short term, there may appear to be a sharing of the consumer, but over time consumers will begin to understand more clearly who Kia is and who Hyundai is and their respective products and features.

Vaughan: Your new Spectra is going right after the high-volume, high-quality sub-compacts, the Corolla and the Civic. But those two cars have long-standing, high-quality reputations and Kia has just the opposite. What's the plan? Load up the Spectra with no-cost features until you can solve the quality problem?

Porter: Kia entered the market with the same philosophy that we stand by today -- offer consumers more for less -- and show them the value in owning a Kia and provide them with confidence to counter any questions on dependability. Kia has offered consumers the best warranty in the business for many years and has recently increased the offering to provide Canada's best ownership coverage. What this means is peace of mind with five years of power train coverage, five years of anti-perforation, five years of roadside assistance, and oil changes and filters for life. Who else is willing to stand behind their products and offer more to the consumer?

Vaughan: Kia's been playing at the low end of the market and now I see what looks like a Korean Buick -- your new Amanti. It's one thing to take a chance on a $13,000 Rio starter car, but can I be confident smacking down 35 grand on your first shot at luxury?

Porter: Kia has proven its ability to successfully compete in the hotly contested up-market minivan and SUV categories, outselling in volume the Honda Pilot and Toyota 4 Runner in the 2003 calendar year. We expect to continue to do so with the Amanti sedan.

There are buyers who seek full-size room and comfort with a full range of safety features, but are not prepared to pay an excessive price for a nameplate. This new sedan will not only appeal to a whole new group of buyers for Kia, it will also help shift consumer image of Kia to that of a company providing leading value in every segment where it competes.

Vaughan: Who has the best new car warranty plan in Canada, Kia or Hyundai (see question No. 1)?

Porter: We believe and market Canada's best ownership coverage. With respect to what other manufacturers offer, we have set the trend of backing our product for what the consumer needs and wants.

We feel no need to look in the rearview mirror to see how the other manufactures are doing.

Michael Vaughan is the co-host with Jeremy Cato of Car/Business, Monday nights at 8:30 p.m. on Report on Business Television. Michael Vaughan Live is on at 8 p.m. Monday to Friday.