Hyundai to drop Job Loss coverage from Assurance Plan

[XDCX]

Automotive News is reporting that Hyundai will be dropping the job loss protection feature from their Hyundai Assurance program at the end of this month. The program has been in place since January, 2009.

Frankly, I had forgotten about the coverage but I thought it was a BRILLIANT marketing plan when it was launched.

Amazingly, only 350 customers have used the coverage since the program started. Hyundai has sold over 1 Million cars during that period and their retail share has increased from 3.0% to 4.6%.

The company that administers the plan, EGF Co, Inc., continues to offer the program to 300 - 400 non-Hyundai dealers and hope to secure another OEM client. Hyundai held exclusivity with EGF for one year.

[rd3311]

This was an innovative program indeed, I hate to see HMA back off on this one.

We had no claims... Unfortunately this takes another club out of the bag that you may need later to close a deal.

[XDCX]

Originally Posted by rd3311

This was an innovative program indeed, I hate to see HMA back off on this one.

We had no claims... Unfortunately this takes another club out of the bag that you may need later to close a deal.

Was there any advance notice to the dealers that the program was going away or did you have to read about it in the news?

Given the low level of claims, I wonder why Hyundai decided to kill the program. I was amazed when I read they only had 350 claims on over 1 Million vehicles sold.

[rd3311]

Yes, HMA let us know before this went public, they are good about things like that as well helping solve any outstanding issues. We have been with HMA almost twenty five years now, and have stuck with them the entire time from the start up to today.

350 claims in regards to over 1 million sold (Wall Street Journal reports it is closer to 2 million sold) is a drop in the bucket. Who knows HMA might have something better yet to come..

[XDCX]

Originally Posted by rd3311

Who knows HMA might have something better yet to come..

That's a good point - it will be interesting to see if Hyundai's launches another innovative campaign.

Concerning your 25 years with Hyundai, congratulations. I know there were a number of dealers who bailed-out of the franchise in the early 90s who probably regret their decision.