02-17-2012, 06:40 PM | #1 |
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Top Factory Issues for Hyundai and KIA Dealers - CY 2012
The purpose of this thread will be to identify the top issues the Hyundai and KIA dealers have with the Factory in Calendar Year 2012 and then review what progress was made toward resolving those issues by year's end.
This thread will remain in the open section of DealershipForum and the second post of this thread will be updated with the latest issues identified by our members. A separate thread discussing the ranking of these issues will be created in AREA 51 if needed. |
02-17-2012, 07:40 PM | #2 |
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Listing of the Top Issues with the Factory
This post will be updated with the top issues the Hyundai and KIA dealers have with the Factory as identified by our members. The ranking of the Top Issues will also be based on the input provided by our members.
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02-20-2012, 06:07 AM | #3 |
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How about an increased corporate ad budget for Azera since it is going up $6K in price?
How about increased inventory of the low end Kia Rio and Forte models? How about some increased dollar percentages for KMA/HMA contributions to local DAA regional advertising groups? I like the idea of branding the upscale cars Genesis, but is it going to happen for sure? Hey it is all good, but how can it get even better? |
02-20-2012, 01:04 PM | #4 | |||
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That said, would all Hyundai dealers get access to the Genesis vehicles or would it be a separte franchise only awarded to select dealers? |
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02-21-2012, 05:39 AM | #5 | ||
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KMA/HMA how about a "goodwill" increase in warranty labor rate, since all we are doing is selling maintenance in the service drive.. |
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02-21-2012, 09:00 AM | #6 | |||
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If Hyundai and KIA were smart they could increase the warranty labor rates for their dealers as a goodwill gesture and then issue a press release to Automotive News indicating their increased vehicle quality allowed them to make the change. |
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02-21-2012, 11:30 AM | #7 |
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My biggest concern w/ Kia is sustainable growth. Kia had a 36.3% increase in 2011 over 2010. Kia’s has increased US market for 17 straight years w/ a 78% increase from 2008 to 3.8% for 2011. Now that’s great for Kia however my concern is for the dealer body & in particular the store that I derive my livelihood from.
The last several years have been a new paradigm. Kia’s product plan has moved away from a low price point w/ high incentives & all the inventory a dealer would want. The product is top notch w/ selling prices 25% more & incentives at less than half. That’s great but dealer are starving for inventory. In 2011 Kia increased storefronts about 8% & intends to do the same in 2012. These new stores are metro stores w/ monthly sales of 50 to 100+. Also over the last few years there’s been a tremendous turnover of under performing stores that took the points from single-digits & low teens to 50+ monthly. Dealers that wouldn’t consider Kia before are now clamoring for a franchise. What I’ve seen w/ these new stores is they’re initially flooded w/ inventory at the expense of existing stores & later they’re begging for inventory w/ the rest of us while the next new stores come onboard. The allocation process sounds fair w/ a 50/50 weight in 2 processes. The first allocation is your percentage of a model’s sales, the second is your days’ supply versus the days’ supply available. The problem is the third factor. “A dealers may also receive discretionary supplemental earnings from their region, to support special promotions or for other appropriate business purposes”. Now that’s a whole can of worms open for manipulation & I can’t believe they actually put that in writing. I’m happy for Kia’s growth. Our Kia sales are up in excess of 350% from 2005. However our sales could have been 1/3 better last year if we had anywhere near the allocation we should have earned. Increasing sales without comparably increasing supply may be good for an OEM’s margin but it doesn’t work the same way for the dealers. Sorry for the long wind. If you ask me what time it is, I’ll probably tell you how to make a watch. |
02-21-2012, 11:56 AM | #8 | |
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02-21-2012, 01:40 PM | #9 |
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Our small suburban Hyundai store just need more product. And they need the customer service loyalty that Honda and Toyota owners have.
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02-21-2012, 03:31 PM | #10 | |
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It’s still happening for some. |
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03-05-2012, 05:22 AM | #11 |
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There has been recent acknowledgement of a future KMA U.S. spec version of the K9 V-8 rear wheel drive large sedan (built on Hyundai Genesis platform), please KMA can we get this car and keep the MSRP around $35K?
At this price, plus with the hinted styling it should be a volume car. Last edited by rd3311; 03-08-2012 at 05:02 AM. |
03-07-2012, 01:54 PM | #12 | |
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When I get caught up I'll add more to this thread and include your comment in the second post. |
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