- Jan 28, 2008
Hyundai resets its sights on 500,000 units in 2008
In 2007 Hyundai had a US sales target of 555,000. That number was set by HQ in Korea, and when it was clear they weren't going to make it, they revised it downward to just over 500,000. By the time the bell rung, even that number proved a little beyond Hyundai's reach: they sold 467,009 cars last year. That still represented a 2.5-percent gain over 2006 sales.
Hyundai's goal this year is a 20-percent increase in global sales. For the US, though, the goal is 500,000 units, which is the goal set by the folks in the US, not Korea, and even though nearly everyone has predicted a sales downturn, that goal is "regardless of what the industry is doing." To achieve those sales, the automaker has revamped numerous aspects of their dealer incentive operation. Hyundai dealership profit was down five-percent last year, and only two-thirds of dealers benefited from company incentives. This year, the dealer incentive has been streamlined and set up so that 99-percent of dealers are expected to receive some sort of incentive. Dealers will also be receiving more Accents and Elantras to prevent the shortages experienced last year.
Hyundai is also bringing back its dealer ad associations and is going to distribute more largesse to help dealers advertise everything happening for the growing brand. Hyundai has a refreshed Sonata and the new Genesis coming in the spring, and the Genesis coupe and Elantra Touring coming later this year, and it wants to make sure everyone hears the word. It's quite conceivable that Hyundai can increase its sales this year in spite of the market, and making its dealers happy will be a good way to help the cause. Dealers are, of course, happy about the changes, but also want to make sure Hyundai doesn't forget its bread and butter cars and customers in the Genesis hoopla.
[Source: Automotive News - Sub. Req.]