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Hyundai wins Advertising Age Marketer of the Year award

Jonny Lieberman — Mon, 09 Nov 2009 16:01:00 EST

Filed under: Car Buying, Sedan, Marketing/Advertising, Hyundai, Luxury, South Korea

Hyundai Genesis Sedan - Click above for high-res image gallery

Allow us to set the stage. The year was 2009, the month was February. The U.S. economy, which for months had been showing signs of springing a leak, was now fully flooding into five forward compartments. Banks were dead or dying, the housing industry had ground to a halt and without massive influxes of cold, hard government cash, two thirds of the Big Three would have gone belly up.

Enter Hyundai. Amidst all the chaos and turmoil, the Korean automaker airs (during the Superbowl, mind you) a very simple commercial stating the following: "Now finance or lease any new Hyundai, and if you lose your income in the next year, you can return it free with no impact on your credit." This program, what Hyundai calls its Assurance Program, was just one of the many factors that led the editors of Advertising Age to name the resurgent Korean automaker's ad men as their Marketer of the Year - an award that isn't just confined to the automotive sector.

Aside from just appealing to "broken dreams," (i.e. bad credit, job loss) Hyundai also pushed the then new luxury Genesis Sedan to people with "intact dreams." Moreover, while the Superbowl tends to skew male, Hyundai made sure to scoop up all of bankrupt General Motors' ad spots during the Oscars, an event that skews heavily female. Long story short, Hyundai's market share is up during the first ten months of 2009 from 3.1% to 4.3% and in September, when the rest of the industry experienced a 22% sales drop, Hyundai's sales went up 27%. Tip of the hat to Vumiko!

Gallery: 2010 Hyundai Genesis sedan

[Source: Advertising Age]

Hyundai wins Advertising Age Marketer of the Year award originally appeared on Autoblog on Mon, 09 Nov 2009 16:01:00 EST. Please see our terms for use of feeds.

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REPORT: Hyundai may extend Assurance program, go after fuel economy crown

Dan Roth — Thu, 22 Oct 2009 10:40:00 EST

Filed under: Marketing/Advertising, Hyundai, Earnings/Financials

If you haven't noticed, Hyundai's been on a multifaceted tear lately. Earlier this year, Hyundai came out with its Hyundai Assurance Program, letting customers return their cars if they suffered a loss of employment. CEO John Krafcik confirms that Hyundai Assurance is staying until the end of 2009, and its future beyond that is under serious scrutiny. Aside from its new models, the innovative car-return initiative was probably the biggest news to come out of Hyundai all year, and other automakers have followed suit with similar plans of their own.

While everyone else is down and the overall market has taken a 30% whack, Hyundai's U.S. sales are up 2% for the first nine months of this year.

Rather than rest on its laurels, Hyundai wants to further increase its sales. Turning over the cars it has to offer has made the Korean automaker's model mix relatively fresh, and word is they are going after America's fuel-economy crown, as well. While there is a hybrid Sonata on the way, the new model is probably not going to move Hyundai up from #3 in fuel efficiency all on its own (the automaker trails Toyota and Honda), so the rest of its fleet is reportedly getting a fine-toothed once over.

[Source: Automotive News - sub. req.]

REPORT: Hyundai may extend Assurance program, go after fuel economy crown originally appeared on Autoblog on Thu, 22 Oct 2009 10:40:00 EST. Please see our terms for use of feeds.

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Hyundai's $1.49 fuel promo causing traffic jams at gas stations across the country?

Jeremy Korzeniewski — Wed, 01 Jul 2009 18:58:00 EST

Filed under: Marketing/Advertising, Hyundai, Lifestyle

Hyundai gas promotion traffic - Click above for high-res image gallery

Well, imagine that. People like cheap gas. Enough, in fact, that they're willing to line up in droves just for the privilege of filling up their tanks. As if you needed further proof of this unfailing truth, here are the pictures to prove it. As part of its new Hyundai Assurance Gas Lock promotion, the Korean automaker ran an unannounced campaign in New York, Chicago and Los Angeles where consumers could purchase gas for just $1.49 per gallon.

The catch? There was just one location in each cities where the program was in effect and the location was kept secret until an hour before the promotion began. In a nod to modern social media users, Hyundai sent the information to its Twitter followers (@hyundainews) just before local radio stations announced the promotion city-wide about an hour before it started. Predictably, a mad rush to each location ensued. Nice little PR stunt, no?

Click past the break for the press release and check out the images of the madness shot on location at the Horace Harding BP gas station in New York. Similar scenes were reported in Chicago and LA.

Gallery: Hyundai gas promotion traffic

Continue reading Hyundai's $1.49 fuel promo causing traffic jams at gas stations across the country?

Hyundai's $1.49 fuel promo causing traffic jams at gas stations across the country? originally appeared on Autoblog on Wed, 01 Jul 2009 18:58:00 EST. Please see our terms for use of feeds.

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New Hyundai Assurance provision locks gas at $1.49/gal for one year [w/VIDEO]

Chris Shunk — Tue, 30 Jun 2009 11:28:00 EST

Filed under: Marketing/Advertising, Videos, Hyundai

Hyundai Assurance Gas Lock ads - Click above to watch the videos after the jump

Hyundai is piling on additional incentives to boost its Assurance program as the industry heads into the dog days of summer. The newest promotion, Gas Lock, fixes the price of regular unleaded at $1.49 per gallon for the next year. The program runs July 1 through August 31, and eligible vehicles include the Accent, Sonata, Tiburon, Elantra, Elantra Touring, Entourage, Azera, Santa Fe, Tucson and Veracruz. Customers choosing to utilize Gas Lock will forgo $1,000 in available rebates, making the incentive a gamble that gas prices will remain high.

Hyundai Assurance struck at cord with the American public when it offered payment protection in the event of job loss. Now Hyundai is looking to give consumers increased peace of mind over of the volatility of gas prices, which have swung from under $2 a gallon a few months ago to nearly $3 at the beginning of summer.

John Krafcik, CEO and president of Hyundai Motor America, says the company's research shows that "nearly 40% of potential new car buyers are staying out of the market specifically due to uncertainty around future gas prices."

You may remember that last year, Chrysler tried a similar promotion, offering the opportunity to lock in gas at $2.99 per gallon when a gallon of petrol was at an all-time high of about $4.50. The move didn't appear to be very successful for the Pentastar, as most opted to instead take the upfront cash on the hood. Hit the jump to pour over the particulars of Hyundai's Gas Lock promotion, watch the two commercials, and let us know in the comments section if you feel customers would be better off taking the $1,000 or one year of $1.49 gasoline.

[Source: Hyundai | Image: Justin Sullivan/Getty]

Continue reading New Hyundai Assurance provision locks gas at $1.49/gal for one year [w/VIDEO]

New Hyundai Assurance provision locks gas at $1.49/gal for one year [w/VIDEO] originally appeared on Autoblog on Tue, 30 Jun 2009 11:28:00 EST. Please see our terms for use of feeds.

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New Hyundai 'We pay you for buying our cars' campaign really just deferred incentives?

Chris Shunk — Wed, 03 Jun 2009 10:57:00 EST

Filed under: Car Buying, Marketing/Advertising, Hyundai

The Hyundai Assurance program may well go down as the most innovative and perhaps successful marketing campaign of 2009. The program was so perfect for our economic times that General Motors and Ford eventually followed suit with very similar offers. But according to The New York Times, Hyundai's marketing magic may have worn out with the South Korean automaker's newest offer - an incentive that sounds great until you dig just beneath the surface.

The new Hyundai campaign promises to pay customers during the first six vehicle payments on any model purchased before June 30. As you likely already know, the payment paradigm usually works the other way around, and the new Hyundai plan sounds like a real winner for the customer. In fact, though, the payment basically takes the place of a lump sum cash incentive that would normally be due at signing. That's right, we're talking about the repackaging of existing customer rebates. In this case, you get six small payments (on a Visa card) spread out over six months instead of one big rebate that you would traditionally receive up front. When considering the fact that the standard lump sum rebate can often be used to lower your car payments - while also taking a bite out of interest payments through the life of the loan - we'll take our rebates the old fashioned way.

[Source: The New York Times via Kicking Tires]

New Hyundai 'We pay you for buying our cars' campaign really just deferred incentives? originally appeared on Autoblog on Wed, 03 Jun 2009 10:57:00 EST. Please see our terms for use of feeds.

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VIDEO: Hyundai Assurance - We'll ~^#ing do anything* (NSFW language)

Chris Shunk — Fri, 17 Apr 2009 11:30:00 EST

Filed under: Marketing/Advertising, Videos, Hyundai

Hyundai Assurance Spoof: Click above to watch the video after the jump

The Hyundai Assurance program has been one of the most clever - and arguably among the most successful - incentive programs in recent memory. Hyundai has experienced a sharp rise in retail share since the program was initiated, and Ford and GM were so impressed with the program that the Detroit automakers decided to whip up their own assurance plan.

If imitation isn't the biggest sign that Hyundai Assurance is a success, then parody is. Some clever chaps at Funny or Die took it upon themselves to create their own Hyundai Assurance commercial, but somehow we don't think this is what the Korean automaker had in mind. Sex ads on Hyundai' website? We don't think so. Be warned, although it's very funny, it has some explicit language. If swear words aren't your thing, you're around kids, or you're sitting in your cube with your ultra-p.c. boss lurking over your shoulder, you may want to pass on this one. Hit the jump to see for yourself.

[Source: Funny or Die]

Continue reading VIDEO: Hyundai Assurance - We'll ~*^#ing do anything (NSFW language)

VIDEO: Hyundai Assurance - We'll ~*^#ing do anything (NSFW language) originally appeared on Autoblog on Fri, 17 Apr 2009 11:30:00 EST. Please see our terms for use of feeds.

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GM to unveil new incentives to assure buyers?

Chris Shunk — Tue, 31 Mar 2009 09:28:00 EST

Filed under: Car Buying, Government/Legal, Marketing/Advertising, GM

All the bankruptcy talk surrounding General Motors hasn't helped the largest U.S. automaker on the showroom floor, as sales have dropped by over 50% in 2009. Without additional incentives, GM sales may fall further with the the Obama administration's rejection yesterday of the 100-year-old company's most recent viability plan.

GM is apparently not planning on going quietly into the night, as the automaker is reportedly preparing some big-time incentives to help move metal in the midst of all this bankruptcy talk. Bloomberg is reporting that GM will unveil new incentives on April 1 (no joke) that in many ways mirror the Hyundai Assurance plan. Any worker laid off after purchasing a car or truck will reportedly be able to turn in the vehicle without taking a credit hit.

Another element of GM's reported incentive plan is backing the residual value of its vehicles. While details are still sketchy, the program would "provide some restitution for customers who are unable to resell their vehicles at a prearranged value when they want a new car or truck." Depending on the specifics, that could cost the automaker a pretty penny, as good resale value hasn't been its calling card for some time now despite recent efforts to the contrary like drastically cutting sales to fleets.

[Source: Bloomberg | Image: Spencer Platt/Getty]

GM to unveil new incentives to assure buyers? originally appeared on Autoblog on Tue, 31 Mar 2009 09:28:00 EST. Please see our terms for use of feeds.

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Hyundai Assurance program unused by owners so far

John Neff — Wed, 25 Mar 2009 18:01:00 EST

Filed under: Car Buying, Hyundai

Hyundai has scored a big marketing win with its incentive program that allows owners to return a new Hyundai within a year if they lose their job. Called the Hyundai Assurance program, the South Korean automaker sweetened the deal later by offering to pay up to three months of car payments before taking the car back so that owners would have time to look for a new job. While the rest of the auto industry has been hit with slumping sales in 2009, Hyundai sales were up in January and about even in February compared with 2008. Some of that certainly has to do with the peace of mind provided by the Hyundai Assurance program.

But an incentive program isn't successful just because it sells more vehicles. The value of the incentive to the automaker goes down the more it cuts into the profit of each vehicle sold. So how much has the Hyundai Assurance plan cost so far? Aside from a few marketing dollars to get the word out - nothing. That's because despite selling 55,133 vehicles through the end of February, not a single owner has taken Hyundai up on its offer to buy back their vehicle. So, at this point, the incentive program has been a home run idea that's sold more cars but effectively cost Hyundai nothing. Of course, that could all change if within the next year our economy turns into Great Depression II and Hyundai owners begin returning their vehicles en masse. Until then, however, Hyundai will likely continue to enjoy a better sales performance each month than its competition.

Follow the jump for a poll on the effectiveness of Hyundai's Assurance program.

[Source: Kicking Tires]

Continue reading Hyundai Assurance program unused by owners so far

Hyundai Assurance program unused by owners so far originally appeared on Autoblog on Wed, 25 Mar 2009 18:01:00 EST. Please see our terms for use of feeds.

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GM considering new incentives like, but not exactly like, Hyundai Assurance program

Chris Shunk — Wed, 04 Mar 2009 11:41:00 EST

Filed under: Car Buying, Marketing/Advertising, GM, Hyundai

General Motors' sales for the month of February dropped by a gut-wrenching 53% versus February 2008, giving the General plenty of incentive to kick up, well, incentives. GM knows it has to do something more than the typical cash on the hood, 0% financing marketing initiatives, and it has looked at the Hyundai Assurance program for inspiration.

GM executive Mark LeNeve told Automotive News his company recognizes that the Hyundai program may be addressing sagging consumer confidence, but he doesn't like the fact that losing your job means you also lose your car. LeNeve also stated that he isn't sure the Hyundai Assurance program is the main reason that the Korean automaker's sales were up 14% for January, stating that a portion of the increase could be the result of deep discounts on 2008 models.

Then again, Hyundai had the third lowest decline in February of any major automaker, showing that its improved product lineup is likely being helped by clever incentives. For now, GM isn't divulging much in the way of details about its new incentive plans, but for the short term plans on extending its Presidents Day sale into March. Times may be tough right now, but it looks as if more automakers than just Hyundai are preparing creative incentive programs to move their metal.

[Source: Automotive News, sub. req'd | Photo by Justin Sullivan/Getty]

GM considering new incentives like, but not exactly like, Hyundai Assurance program originally appeared on Autoblog on Wed, 04 Mar 2009 11:41:00 EST. Please see our terms for use of feeds.

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Hyundai Assurance "Plus" adds 90-day payment relief to popular program

Chris Shunk — Fri, 20 Feb 2009 12:59:00 EST

Filed under: Car Buying, Marketing/Advertising, Hyundai

While the U.S. auto industry experienced a massive drop in sales last month, Hyundai was one of just three automakers that posted an increase. While a number of factors can account for the South Korean automaker's success in a down market, especially the addition of an all-new model, the Genesis, to its lineup, Hyundai knows its creative Assurance Program is helping. People are worried about losing their jobs in a recession and committing to the monthly payments of a new car sounds like a bad idea. The Hyundai Assurance Program allows new owners to return their Hyundai within one year if they lose their job, which helps put those prospective buyers at ease with their purchase.

Hyundai is now taking its Assurance Program to the next level with the Hyundai Assurance Plus Program. The Plus means that owners who suffer a disability or lose their job will get payment relief for 90 days or three car payments. The goal is to give customers a 90-day window to replace their income, and if they fail to do so, Hyundai will still take the car back under the terms of the original Assurance Program. There are a few stipulations to keep buyers honest, though, like being employed for at least 90 days prior to qualifying for the Assurance Plus program. Hit the jump to read up on the program's details.

[Source: Hyundai]

Continue reading Hyundai Assurance "Plus" adds 90-day payment relief to popular program

Hyundai Assurance "Plus" adds 90-day payment relief to popular program originally appeared on Autoblog on Fri, 20 Feb 2009 12:59:00 EST. Please see our terms for use of feeds.

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Hyundai says Assurance program is effective

Michael Harley — Tue, 17 Feb 2009 09:32:00 EST

Filed under: Hyundai, Earnings/Financials

Hyundai's Assurance program, launched by the automaker in early January to give wary customers peace of mind if they lose their jobs during the first year of Hyundai ownership, appears to be working. According to the Korean automaker, the program is attracting shoppers. "We think it's responsible for a 10 to 15 percent incremental increase in interest," said John Krafcik, acting CEO of Hyundai Motor America.

January sales numbers seem to support the automaker's claim. While nearly every other car manufacturer reported double-digit sales declines last month, Hyundai sales were up 14.3% compared to the same period last year. Krafcik credits the sales increase to the publicity surrounding the Genesis sedan being named the North American Car of the Year, and its unique Assurance program. Only two customers have returned cars under the program, and the automaker is committed to run it until the end of 2009... plenty of time to be applied towards a new Genesis Coupe which is scheduled to roll into showrooms later this month.

[Source: Automotive News - Sub. Req.]

Hyundai says Assurance program is effective originally appeared on Autoblog on Tue, 17 Feb 2009 09:32:00 EST. Please see our terms for use of feeds.

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Autoblog

Hyundai wins Advertising Age Marketer of the Year award

REPORT: Hyundai may extend Assurance program, go after fuel economy crown

Hyundai's $1.49 fuel promo causing traffic jams at gas stations across the country?

New Hyundai Assurance provision locks gas at $1.49/gal for one year [w/VIDEO]

New Hyundai 'We pay you for buying our cars' campaign really just deferred incentives?

VIDEO: Hyundai Assurance - We'll ~*^#ing do anything (NSFW language)

GM to unveil new incentives to assure buyers?

Hyundai Assurance program unused by owners so far

GM considering new incentives like, but not exactly like, Hyundai Assurance program

Hyundai Assurance "Plus" adds 90-day payment relief to popular program

Hyundai says Assurance program is effective

VIDEO: Hyundai Assurance - We'll ~^#ing do anything* (NSFW language)