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Old 10-23-2012, 02:01 PM   #1
XDCX
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Default Is KIA pressuring their Dealers to add Accessories to New Vehicles?

I'd heard from a member that KIA may be pressuring their Dealers to add Factory Accessories to their new vehicles. Apparently there's a standard where KIA expects a certain percentage of new vehicles to have at least $X.XX of accessories installed.

That's the rumor. In fairness to KIA, it's not clear if this is just one dealer's perspective or if this is something that's happening across the country.

It's also not clear if KIA is using a carrot or a stick as a reward mechanism. It's one thing to be measuring a Dealer's use of Factory Accessories but it's something entirely different if this measure is used to penalize or award a dealer.

What's happening in your area - Is KIA pressuring dealers to sell more Factory Accessories?
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Old 10-23-2012, 02:50 PM   #2
steve_biegler
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Originally Posted by XDCX View Post
It's also not clear if KIA is using a carrot or a stick as a reward mechanism. It's one thing to be measuring a Dealer's use of Factory Accessories but it's something entirely different if this measure is used to penalize or award a dealer.
SSSSSSSSSSSHHHHHHHHHHHHHHH. Not so loud.....the domestics may use this idea as a new form of tiered pricing.
.

Last edited by XDCX; 10-23-2012 at 03:08 PM. Reason: Fixed quote tag
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Old 10-23-2012, 03:15 PM   #3
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SSSSSSSSSSSHHHHHHHHHHHHHHH. Not so loud.....the domestics may use this idea as a new form of tiered pricing.
.
That's a great point. The last thing the dealers need is another mechanism for the OEMs to create two-tiered pricing.

In the case of KIA, I'm betting their inventory situation is so tight that a dealer might agree to ordering a few pallets of accessories if that's what it takes to get some extra inventory. To be clear, I'm not alleging that's happening, but given the history of this industry it's not beyond the realm of comprehension.

Anyone remember back in the days when new Hondas were so hard to get that some of the Factory Reps were taking payoffs? I once called on a GM who admitted he bought his rep a refrigerator to get some extra inventory. Crazy times.....
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Old 10-24-2012, 07:09 AM   #4
rd3311
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Originally Posted by XDCX View Post
I'd heard from a member that KIA may be pressuring their Dealers to add Factory Accessories to their new vehicles. Apparently there's a standard where KIA expects a certain percentage of new vehicles to have at least $X.XX of accessories installed.
KMA is pushing parts sales and is wanting dealers to carry a larger "on hand" inventory of parts to get customers cars back on the road faster. KMA has been short of cars for allocation, so they are pushing parts and accessories in the mean time.

Many here may remember when Mopar Parts started hammering dealers years ago about accessories like Mastershield, Mopar truck bedliners, etc while stressing that Mopar is responsible for all product liability issues as well.

This is a modern version of the same story. It does not hurt to play.
.

Last edited by XDCX; 10-25-2012 at 12:56 PM. Reason: Fixed quote tag
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Old 10-25-2012, 01:07 PM   #5
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Originally Posted by rd3311 View Post
KMA is pushing parts sales and is wanting dealers to carry a larger "on hand" inventory of parts to get customers cars back on the road faster. KMA has been short of cars for allocation, so they are pushing parts and accessories in the mean time.

Many here may remember when Mopar Parts started hammering dealers years ago about accessories like Mastershield, Mopar truck bedliners, etc while stressing that Mopar is responsible for all product liability issues as well.

This is a modern version of the same story. It does not hurt to play.
.
Thanks for the update.

The impression I get is KMA is pushing their dealers to buy more accessories but it's no different then what any other OEM has done and nothing bad happens to a dealer's allocation if he/she decides not to play.
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Old 10-26-2012, 09:16 AM   #6
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Excerpts below copied from a KIA reps email:

" Allocation Reminder & Major Dealer Request Change!

The Allocation System has been modified to Require Dealers to input Port Installed Options when placing Dealer Requests in the system. The process is extremely simple to do and requires only the use of a drop down box to ensure you receive the right options.
a. Step one – Complete the Dealer Request Process as usual.
b. Utilize the Drop Down Folder when choosing the PIO’s you would like added to each request.

By clicking on the PIO folder you can choose the Port Installed Options that you desire rather than having the computer randomly assign Body Kits & Tow Hitches to everything you earn…

Dealers not adding PIO’s to their Dealer Requests at all or adding less than an average of $300 to each request will be awarded additional PIO’s by the computer that cannot be removed.

Important Note – Dealer that input an average of $300 in PIO’s during the Dealer Request Process should not receive unwanted PIO’s from the Computer Process.

Please take my advice and ask for PIO’s that you want and do not take your chances as to what the computer thinks you need… "
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Old 10-26-2012, 09:55 AM   #7
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Dealers not adding PIO’s to their Dealer Requests at all or adding less than an average of $300 to each request will be awarded additional PIO’s by the computer that cannot be removed.

Important Note – Dealer that input an average of $300 in PIO’s during the Dealer Request Process should not receive unwanted PIO’s from the Computer Process.

Please take my advice and ask for PIO’s that you want and do not take your chances as to what the computer thinks you need… "
crowe - Great post - that's very interesting.

It appears KIA is forcing their dealers to add at least $300 in "Port Installed Options" or KIA will do it for them.

I know KIA inventories are tight and KIA has historically had very good dealer relations, but I wonder how most KIA dealers feel about this requirement? Granted, $300/car isn't a huge deal but it does seem like the dealers are being forced to do something that benefits KIA a lot more then the dealers or the customers.

Concerning the Monroney Labels, are they affixed to the vehicles at the assembly plant or at the port? Having an extra $300 in options added to a new car wouldn't be quite as bad if they showed-up on the Monroney.
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Old 10-26-2012, 09:59 AM   #8
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HMA is doing a very similar thing, according to my counterpart at our Hyundai store. They are 'asking' for a 20% increase in Accessories year over year. They have asked the DP to load most of those on in-stock vehicles.
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Old 10-26-2012, 10:56 AM   #9
rd3311
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Quote:
I know KIA inventories are tight and KIA has historically had very good dealer relations, but I wonder how most KIA dealers feel about this requirement? Granted, $300/car isn't a huge deal but it does seem like the dealers are being forced to do something that benefits KIA a lot more then the dealers or the customers.
When you are short of vehicles to allocate, and have an abundance of accessory inventory this is how it gets moved other than sit on the shelf.

Luggage racks, fender skirts, rims, etc will be installed on units that you are going to turn quick anyway.

HMA did this every year to come up with the Spring/Summer SE models (white 1991 Scoupe) that were pushed (ground effects, cladding, rims) in the respective selling season.

Chrysler also did this with the "Spring Specials" "Thunder Road" models and the like.

Do some of you remember the 1984 Colt Turbo twin stick with the spoilers and the 024 DeTomaso?
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Old 10-26-2012, 12:58 PM   #10
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Default Does the Accessory Requirement apply to vehicles made in the U.S.?

To the extent the options in question are being added at the port, does KIA's accessory requiement apply to vehicles that are built in the U.S.?
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Old 10-27-2012, 05:48 AM   #11
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Originally Posted by XDCX View Post
To the extent the options in question are being added at the port, does KIA's accessory requiement apply to vehicles that are built in the U.S.?
Unwanted accessories are added to all units, U.S. built & imports.
The accessories are on the Monroney label.

Although options are no longer options, their manipulation of the allocation process is a much bigger concern.

I wonder if they have considered the huge lawsuit Southeast Toyota got hit with & lost regarding installing unwanted optional accessories along w/ manipulation of allocation.
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Old 10-27-2012, 07:39 AM   #12
shwngo
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Originally Posted by tnpartsguy View Post
HMA is doing a very similar thing, according to my counterpart at our Hyundai store. They are 'asking' for a 20% increase in Accessories year over year. They have asked the DP to load most of those on in-stock vehicles.
This is what Kia is "asking" us to do as well. Mud guards or whatever on every car or at minimum 20% of what we are selling..
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