I think reliability is the reason they killed the Soul. It scored too high a score on reliability for its price point.
People on HN love talking about small cars, but purchasing data has shown otherwise in most markets.
The Kia Soul was also heavy hit by tariffs on South Korean automotive exports in North America and the EU as well as the sanctions on Russia, as it was manufactured and assembled in Kia's Gwangju and Kaliningrad factories. Btw, the Russian factory now assembles Chinese cars for the Russian and Belarusian market.
margins and market incentives aren't there for small vehicles. same reason that things like clothes are bifurcated into either bottom-barrel fast-fashion or $1000 button ups.