Dealerships are key to Hyundai’s success

It’s no secret that Hyundai has won numerous accolades in recent years for its rapid introduction of new models that showcase its commitment to electrification and connectivity.

These and other rapid innovations are positive for the automaker’s bottom line and reputation, but some wonder how dealerships can keep pace and manage efficient and profitable operations.

“We really want to partner with our resellers because when we go to mass adoption, (customers) are going to walk into resellers after doing their research online and they want to know…” Is that ok work for me? ‘ said Olabisi Boyle, a vice president of Hyundai Motor America. “(We regularly ask) ‘How do we work with our dealers when we meet with them to tell them that’s the criteria so you’re ready when we sell them?’

Boyle answered the dealer question after his keynote address at the Center for Automotive Research’s Annual Management Briefing Seminars in Traverse City, MI. Although she is responsible for guiding the strategic direction of Hyundai’s US vehicle lineup, leading long- and short-term planning, and overseeing market research, business analysis and pricing, she and her colleagues of management regularly exploring and discussing ideas with dealers.

This type of regular communication is crucial, allowing the automaker to gather insights into a number of vital areas of concern, including barriers to consumer adoption. Allowing leaders to work in a hybrid environment — part remote, part in-office — combined with cross-pollination across divisions ensures a unified message and dealer responses are known across the organization, she says.

This is especially important given changing consumer demographics. When dealers share their knowledge of buyer concerns and preferences with automaker leaders, it allows the company to form industry partnerships that meet market demands.

This type of communication has paid off in dealer enthusiasm and, of course, business success, Boyle says. Hyundai has won a series of awards and accolades from WardsAuto and others, including the World Car of the Year award, given to the Ioniq 5 BEV.

She expects that to continue to grow as the automaker rolls out its new models and strategies, including its try-before-you-buy program that Hyundai has piloted over the past six to nine months with what Boyle says they are “key dealers.”
“What we’ve found is that (customers want) to have a short-term car to try out,” Boyle says of the program in which customers pay a monthly fee for the car that includes insurance. , maintenance, roadside assistance and fully digital service. live. The duration of the agreement can vary from one month to three months or more.

She credits the dealership for the growing popularity of the program, which relies on Hyundai’s finance arm for capital.

“We work with dealerships so we can learn as we go through the (pilot) process before we fix it, Boyle says. “And now the conversion rate is increasing. Customers come back and say, “I like the Ioniq 5. I’m going to buy it. » »

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