Hyundai brings down the hammer on 50 dealers

[slackerinabox]

Hyundai brings down the hammer on 50 dealers

Posted Apr 2nd 2007 12:33PM by Frank Filipponio
Filed under: Car Buying, Hyundai
Shape up or ship out seems to be the message that Hyundai is sending to 50 of its worst performing dealers. Automotive News is reporting that Hyundai Motor America COO Steve Wilhite sent a "strongly worded" letter to 50 'chronic underachievers.' Poor sales and customer service is at the heart of Wilhite's threats: "We're giving them six months to correct the mistakes. If they can, we're thrilled to have them. If they can't, we want them to turn in their franchises."

As Hyundai is moving towards a reputation that nearly equals that of the Japanese automakers, it is important that its dealer network match the company's commitment to delivering top-notch vehicles. Wilhite hopes the dealers will improve and stay on board, but if they don't, they will be forced out. Sort of. The dealers can still take their cases to the motor vehicle board in their state or even appeal to out-of-state courts before losing their franchise rights. Another 144 problem areas were identified by Wilhite as areas of concern, but no similar threats to drop these dealers were issued.

With products like the new Genesis and Veracruz showing Hyundai's desire to move upmarket, this is an important issue to iron out over the next couple of years. Good product will get people into the dealership, but good customer service will sell the marque and guarantee repeat customers and higher resale values.

Interesting read.. This new CEO has been doing some very good things for the company.

 

[waggy]

yeah. hyundai has turned from being a joke to a good car.

 

[jimmypage13]

Originally posted by: waggy
yeah. hyundai has turned from being a joke to a good car.

QFT

 

[Xyclone]

Originally posted by: waggy
yeah. hyundai has turned from being a joke to a good car.

I agree.

 

[soydios]

Hyundai brings down the hammer on 50 dealers

The dealers can still take their cases to the motor vehicle board in their state or even appeal to out-of-state courts before losing their franchise rights.

Correct me if I'm wrong, but Hyundai can just stop selling cars to the dealerships, right?

 

[Pepsi90919]

Originally posted by: waggy
yeah. hyundai has turned from being a joke to a good car.

i wasn't impressed when i test-drove a tucson and a sonata last year.

 

[Parrotheader]

If Hyundai can get a good reputation for customer service that would be great (I'm sure there's plenty of good dealerships in this regard already.) One of my biggest pet peeves about Honda and Toyota dealerships has always been the arrogance of the sales staff. The quality and reputation of their products virtually sell themselves. As a result, I've run into quite a few smug salesmen in the process (versus many other makes where they were more eager and seemingly more appreciative of your business.)

 

[redgtxdi]

A buddy of mine is working 3rd party w/ Hyundai/Kia to merge their network systems and apparently he feels that while their 'face' looks good........(we wanna be Toyota, etc.).........they are a mess under the surface.

It actually broke my heart a little because I was really starting to see Hyundai/Kia as quite the company for what they're accomplishing in this world.

But my buddy maintains his word. He said that upper management makes demands that the rest of the employees (engineering, mfging, marketing) can't really handle and puts the whole company in a pinch for the sake of 'vision'.

True/False/Indifferent?

 

[Parrotheader]

Originally posted by: redgtxdi
But my buddy maintains his word. He said that upper management makes demands that the rest of the employees (engineering, mfging, marketing) can't really handle and puts the whole company in a pinch for the sake of 'vision'.

True/False/Indifferent?

I have no idea, but it sounds like you could hear those complaints coming out of just about any mega corporation.

 

[wetcat007]

Originally posted by: redgtxdi
A buddy of mine is working 3rd party w/ Hyundai/Kia to merge their network systems and apparently he feels that while their 'face' looks good........(we wanna be Toyota, etc.).........they are a mess under the surface.

It actually broke my heart a little because I was really starting to see Hyundai/Kia as quite the company for what they're accomplishing in this world.

But my buddy maintains his word. He said that upper management makes demands that the rest of the employees (engineering, mfging, marketing) can't really handle and puts the whole company in a pinch for the sake of 'vision'.

True/False/Indifferent?

Your description fits a lot or large companies...

 

[redgtxdi]

Originally posted by: Pepsi90919

Originally posted by: waggy
yeah. hyundai has turned from being a joke to a good car.

i wasn't impressed when i test-drove a tucson and a sonata last year.

I can't speak for the Sonata, but as for the tucson..............

If you test-drove the 4-cylinder, I wasn't all the impressed either, though for the $$$ I can't say it wasn't worth it.

BUT.....if you test-drove the V-6, then I couldn't disagree more. That was QUITE a nice automobile!!

 

[andylawcc]

that's good news, hopefully it just not a PR fluff.

anyway, I test drove a Sonata and I must say it is pretty good car for the price. Thing that turn me off though is the slightly subpar interior. The Accent and Elantra is also pretty good for the price.

 

[Conky]

Originally posted by: waggy
yeah. hyundai has turned from being a joke to being an expensive car.

Fixed.

 

[kumanchu]

Originally posted by: Conky

Originally posted by: waggy
yeah. hyundai has turned from being a joke to being an expensive car.

Fixed.

i think a couple hyundai's ranked best in their class for safety this year too....

safety = good. i am also under the impression that respective hyundais are cheaper than their competitors for similarly spec'd out cars.

 

[OS]

Originally posted by: Parrotheader
If Hyundai can get a good reputation for customer service that would be great (I'm sure there's plenty of good dealerships in this regard already.) One of my biggest pet peeves about Honda and Toyota dealerships has always been the arrogance of the sales staff. The quality and reputation of their products virtually sell themselves. As a result, I've run into quite a few smug salesmen in the process (versus many other makes where they were more eager and seemingly more appreciative of your business.)

that might depend what region you live in, here in ca there are lots of toyo/honda dealers so i haven't seen the sales as being arrogant nor dicks. A slighted customer can just drive 5-10 miles over to the next dealer, the dealerships here are pretty competitive to get business. Maybe you guys have less import dealers in the south so they have that kind of luxury.

 

[PhoenixOrion]

:thumbsdown: to Hyundai vehicles (but exception to their Equus line of cars)

I'd buy a Ssangyong or Daewoo before I buy Hyundai or Kia.

 

[Ronin]

Sounds like you don't know manufacturers very well, then.

 

[vrbaba]

Originally posted by: soydios

Hyundai brings down the hammer on 50 dealers

The dealers can still take their cases to the motor vehicle board in their state or even appeal to out-of-state courts before losing their franchise rights.

Correct me if I'm wrong, but Hyundai can just stop selling cars to the dealerships, right?

I would say so. Hyundai owns the right to its own brand name and cars (new ones). Franchise is borrowing their name, license, etc.

 

[compuwiz1]

Around here, you see lots of credit challenged wimenz driving Hyundai. It is typically known as a "special finance, or credit challenged vehicle. So are Saturns.

Everytime I see either on the road, it screams out, hey, look at me! I have bad credit!

 

[Zee]

around here you see a whole butt load of elantra's. People use them as pure commuter cars.

 

[aldamon]

Originally posted by: compuwiz1
Around here, you see lots of credit challenged wimenz driving Hyundai. It is typically known as a "special finance, or credit challenged vehicle. So are Saturns.

Everytime I see either on the road, it screams out, hey, look at me! I have bad credit!

When I drive my Hyundai I say to myself, "Hey, look at me! My car is paid off."

 

[Tobolo]

lol nice

 

[Kelemvor]

Any link that lists the 50 dealerships?

 

[Ipno]

Wife traded in her hyundai to get a saturn because hyundai customer service was horrible. Kept having recurring problems on the car that were never fixed and then they tried to charge her to fix something that was clearly covered by the warranty. The car was 3 years old with 30k miles when we got rid of it and we couldn't be happier that it's gone. The car was fine when it worked well but the piss-poor customer support drove us off and made us swear never to buy from hyundai again, so I can really see the parent companies point.

 

[krunchykrome]

Originally posted by: Pepsi90919

Originally posted by: waggy
yeah. hyundai has turned from being a joke to a good car.

i wasn't impressed when i test-drove a tucson and a sonata last year.

I rented a v-6 sonata last year and I thought it was a great car. Comfortable, enough power, and good looking.