Hyundai and Kia to increase fleet sales
It’s
no secret that the Korean automakers Hyundai and Kia Motors are on an aggressive schedule to be one of the top five
automakers worldwide in the next few years. As one strategy to achieve that goal, they are increasing their fleet sales
in Europe.
According to Gerry Dorizas, vice president of Hyundai Motor Europe: “It is a major part of
our strategy. To eventually develop in Europe, we see fleet as a big slice of the market.”
Fleet
vehicles, such as car rentals, account for roughly thirty-seven percent of the European vehicle market. Both Hyundai
and Kia want to double their current numbers of units sold this year by 2009.
The move stands in stark contrast to American automakers, who have been moving away from fleet sales in order to
improve brand image and resale value.
Full details and figures at the link.
[Source: Automotive
News]
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Reader Comments (Page 1 of 1)
SHAUN 7:03PM (3/22/2006)
I OWN A KIA SPECTRA 5 THE BEST BUT IF U WANT TO SELL MORE KIA'S HAVE SIRIUS RADIO'S AVAILABLE IN ALL KIA'S I AM A BIG HOWARD STERN FAN. STERN WILL TRIPLE SALES BUY HAVING SIRIUS READY IN ALL KIA'S.
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iQuack 8:16PM (3/22/2006)
A brand noted for being popular in rental fleets risks developing a cheap image, but Hyundai and Kia are wise to encourage people to drive their cars.
The Toyota Corolla has been a rental darling for decades but it's still known for being a quality car with plenty of sales to happy individuals. No harm seems to have come to the Corolla despite its popularity as a rental.
Could be that most people wouldn't consider test driving a Hyundai or Kia unless impressed by a rented one they were assigned.
People must be exposed to a car before they'll consider buying it, so more good than harm in expanding fleet sales in this case.
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Graham 9:28PM (3/22/2006)
A "fleet" car in Europe (or, at least the UK anyway) isn't necessarily the same car as a US fleet car, which is pretty much always a rental. In the UK, a "fleet" car can also be one owned by a corporation or business, given to an employee to drive. Often chosen by the employee (so can be anything from a Hyundai to a BMW), but owned by the company. Replaced every year or so.
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emulous1974 10:14PM (3/22/2006)
I was wondering when it would be brought up, but thought it would be the U.S. I stay in hotels weekly and always go outside to smoke and scan the lot and check out the cars. Right now there are 7 Hyundai Sonotas in the parking lot, with the imfamous barcode on the window to indicate them as rental cars. There are also 6 Volvo S60s with the barcodes on the windows too.
I think think the previous poster got it right. It still has all to do about the car that builds it's image and not necessary who's purchasing it, as in fleet sales.
If the new Hyundai's and Kia's end up being really reliable they will increase their fleet sales, retain their resale values and build a larger customer base.
Seem like the American Auto Manufacturers still don't understand what actually sells cars.
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Stoneman 11:19PM (3/22/2006)
There is no comparison to a Kia, Hyundai, and Toyota. Yes companies have been using Toyotas for decades as fleet cars, however, I haven't seen a single KIA or Hyundia that I have ever wanted to drive off the lot, even for free.
Maybe I've moved up in the automotive snobbishness. Or maybe Korean cars have not made it up in quality enough for me to consider them.
Stoneman
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Butter&Bread 10:18AM (3/23/2006)
#4,
Maybe it's because you are simply not smart enough to get outta that "automotive snobbishness" (guess that's due to the lack of education or something).
Feel sick and tired of those people babbling 'I wouldn't buy a Hyundai ever in my life (even though it's for free!!!)' before taking a chance to drag their strongheaded butts in one.
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Erik 10:23AM (3/23/2006)
Hyundais and Kias were born to be rental cars. They fit even better than an Olds Alero Or Mitsu Galant on the Alamo lot.
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Richard Warren 10:43AM (3/23/2006)
I mentioned this a post a few days ago, if the domestics don't do as much fleet, someone will take their place, a couple of days later, well here we are.
Gotta get over "fleet sales" a sale is a sale, it's keeps people on the line, the product moving, creates cash flow and allows companies to see very quickly what warrranty items pop up. Fleet Sales are not always rentals as has been pointed out and European fleet is much different than American fleet.
As to diminishing a brands value, well how about all those Mercedes taxi's around the world? How about the luxury and fun level rentals being offered? How about 300's?
If and that's a big IF, it really diminishes the value keep in mind that you may have had a large sum of money laid on the hood at the front of the deal and now you want it at the backend. It only sledom works that way.
Good for Kia and Hyundai
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MurlinatoR 11:59AM (4/06/2006)
Stoneman,
That was an ignorant and uneducated comment. You have not gone to a Kia dealer and driven one of their cars. They have some of the best ranked cars for saftey and customer satisfaction right now...
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