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Hyundai Motor EuropeHME Dealer Network Development
Presentation June 27th, 2007
Jens C. NaglEuropean Dealer Network DevelopmentHyundai Motor Europe
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Hyundai’s current Situation in EuropeHME Overview
Entering Europe in 1978
Established 2000Hyundai Motor Europe
28 Markets and 2.500 dealers
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Hyundai’s current Situation in EuropeSuccess in Figures
Sales growth Europe1995 - 2005 +218%
110,000
220,000260,000
280,000
350,000
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Hyundai's current Situation in EuropeAttractive Model Range
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Hyundai's story of success and the influence on the Dealer Network Development
Time
Number
SourceNetwork
•Ind. Garages•Used car dealers•Dealer fromother brands
•Satellites •Dealers fromother brands
•Multi-brand
•HyundaiDealer groups
•Multi-brand groups
Main FocusQuantity Quality
Europe Sales /
No of DLRs
IncreaseSales per DLR
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Hyundai's story of success actual Dealer Network
Dealer Network 2007
40%
60%Multi BrandExclusive
•Large differences across European markets
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Hyundai Dealer NetworkIdeal Network Structure
Ideal: Exclusivity, Hyundai dealers groups with satellites
Time factor- development of a mainly exclusive Dealer network
Fast growth – needs fast development
Strategy: Individual best network solution in each market - to secure capability, capacity and viability of Network
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Dealer Network strategyPurpose of manufacturers
Multi-brand” is the also a chance to be represented in countrieswith low local potentials or difficult structures e.g. Switzerland, Austria, Scandinavia…
Hyundai low service hours and UIO / Business case
Dealer groups with professional structure became interested
Developed customer data base / Hyundai highly competitive
With good success from beginning Dealers improved appraisal on Hyundai
“Groups” have often professional structures, butalso high dependency, lower loyalty and higher financial risk
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Dealer Network strategyIntensions of Dealers to go to second / third brand
just substitute lost market shares
manufacturer supports seem to be most interesting
show the brands/products mixed in segment presentations
Dealers who are just focusing on their total market share, less loyal and less brand focused
if already overachieving national average with first brand, “no” chance for further growth, then multi-brand is a reasonable decision
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Not every brand is the right supplement for the first brand
Dedicated staff / clear Responsibilities/Job descriptions/ separate targets….
Showroom/ Brand separation / Brand and Product experience/
People business: Staff loyaltyBrand responsibilitySeparate StaffKEY Factor: Long Term HR Strategy
Dealer Network strategyKey drivers for success of multi-brand dealers
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Hyundai Motor Europeand the Dealer Network
What's next…
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ProspectsStrategy: Brand Building + Football as Communication Platform
Quality Self-assured
Inspiring
Refined andConfident Continuation of Cooperation
with FIFA until at least 2014
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ProspectsStrategy: Expand and Enhance Presence in Europe
Establish a new production plantin Nosovice / Czech RepublicGroundbreaking April 2007
First “Made in Europe” Hyundai in early 2009
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ProspectsProduct i30
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Thank you for your attention!