Kia Expanding East and Adding New Model

Kia Motors America Inc. said Thursday that it will continue its eastward expansion this year with dealerships in Maryland, Virginia, West Virginia, Pennsylvania, New York and Washington, D.C.

The Irvine-based importer of Kia vehicles from South Korea also unveiled a third model for its lineup at the Greater Los Angeles Auto Show last month. The two-door, convertible version of its Sportage sport-utility vehicle goes into production later this year as a 1998 model, spokesman Geno Effler said.

Industry analysts say the big opportunity in the crowded sport-utility market for the next few years will be in sport-utility vehicles selling for under $20,000. Toyota’s RAV4, which tops $21,000 when loaded, has been a big hit.

Kia’s four-door Sportage ranges from just over $14,000 to about $19,000. The two-door hasn’t been priced yet, but will be lower.

Since entering the U.S. market in 1994, Kia has expanded into 23 states with 220 dealers covering about half of the major urban markets.

John O’Dell covers major Orange County corporations and manufacturers for The Times. He can be reached at (714) 966-5831 and at john.odell@latimes.com