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HYUNDAI WORKING TO IMPROVE DEALERSHIP NETWORK


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HYUNDAI WORKING TO IMPROVE DEALERSHIP NETWORK

By Drew Johnson

With Hyundai’s product transformation now well underway, the Korea automaker is turning its focus to its next major project – its dealer network.

For years Hyundai dealerships have relied on volume to drive profits, which turned away many of the big name dealership groups. As a result most Hyundai stores were run by smaller entities with shallower pockets, but that tide is starting to turn.

So far this year 40 Hyundai dealerships have changed hands, with 19 of those transactions happening after September 1. The transition appears to be working too with the first 21 stores to change hands increasing their average monthly sales from 25 new vehicles to 48 vehicles.

“We’re starting to get really, really good dealers that haven’t been Hyundai dealers before coming in, buying franchises and paying good blue sky for a franchise,” Dave Zuchowski, Hyundai Motor America’s sales boss, told Automotive News. “So now I don’t add any more dealers. I get a good, experienced dealer in who gives us better facilities; he doubles sales, and I keep the same dealer count. It’s a win-win situation.”

Hyundai says it initiated about half of the 40 dealership owner changes.

If Hyundai can continue its product and dealer renovation, it could have a real shot at vying for the top U.S. spot. Earlier this month Hyundai announced it set a new U.S. yearly sales record in October, leaving two months to build on that record sales total.

link:

http://www.leftlanenews.com/hyundai-working-to-improve-dealership-network.html

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Many Hyundai Dealerships Changing Hands, Poised For Upgrades

The next time you're out car shopping, give the Hyundai dealership another chance. You could find a much larger building, or a completely different experience.

Many Hyundai dealerships are poised for an upgrade. According to Automotive News, 40 of Hyundai's 803 U.S. dealerships have changed hands already this year, with 19 of those sales occurring after September 1.

The trend? More experienced dealership owners—and larger dealership groups—with bigger budgets are paying hefty sums for smaller, underperforming Hyundai stores, to potentially replace them with larger, upgraded ones.

Group 1 Automotive, AutoNation, and several large private groups have all purchased Hyundai dealerships this year, says Automotive News. And according to Hyundai, the dealerships are selling for two to three times pre-tax earnings.

With the brand's rapidly expanding market share, along with significant progress in a wide range of reliability, resale value, and quality metrics, it's an indicator that dealers and investors have confidence that Hyundai will be a major player, increasingly so, in coming years.

Hyundai has, indeed, made some significant progress with its mainstream models over the past year, especially with the introduction of the 2011 Hyundai Sonata, which is our top-rated car here and was named TheCarConnection's Best Car To Buy. The 2011 Hyundai Elantra, which we will soon drive, is a highly anticipated model that looks like it will lead the compact segment in some respects; it goes on sale next month.

The trend worth mentioning, of course, if Hyundai's move upmarket. While the brand still sells the lowest-priced car in the U.S. market—the $9,985 Hyundai Accent GL—it also sells the V-6 and V-8 powered 2011 Hyundai Genesis sedans, and the even larger, more luxurious 2011 Hyundai Equus, starting at $58,900, will soon arrive to dealerships.

link:

http://www.thecarconnection.com/marty-blog/1051983_many-hyundai-dealerships-changing-hands-poised-for-upgrades

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