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Hyundai answers your questions

2007-08-07 09:06
General comment from Hyundai South Africa:

This forum it is great opportunity to see what people think of Hyundai as a brand, where we are getting it right and where we are getting it wrong. We have taken many of the comments to heart and will using them internally as a tool to move our business forward.

Why does Hyundai SA not report its sales figures? Do you feel it gives the brand a competitive edge? And with the apparent success of Hyundai on the local sales front, are there any chances of some of the vehicles being manufactured locally?

1. While we don't report specific Hyundai figures we certainly don't feel that this gives us a competitive edge over our competitors. Hyundai sales figures are included within the AMH figures which are reported monthly to Naamsa. We also believe that a very small percentage of customers monitor NAAMSA sales figures on a monthly basis, and we don't believe that this will be their primary consideration when purchasing a new vehicle.

2. Although Hyundai Motor Company is in the process of decentralizing their global manufacturing base, the current focus is on supply to larger markets such as Europe and North America.

Readers are also stating that your good products have to be complemented by several dealerships offering unacceptable customer service. Has the expansion of the dealer network compromised the quality and standard of the work delivered? How are you stepping up after sales capacity to keep pace with the demands of extra sales? Misdiagnosis of problems and lackluster attitudes of staff members are just some of the concerns raised.

Our average national service CSI score is currently 83%. In this very competitive industry we are aware that this is not good enough and have thus set targets at 90%. Through our support to the dealer network, visible in the latest NADA Dealer Satisfaction results where Hyundai SA was rated best in the industry overall, we will continue to support all dealers in their quest to reach this target.

One of the areas of concern in the South African motor industry is the shortage of skilled technical staff. One of the biggest steps that we have taken in this regard is the recent opening of Hyundai Training Centre in Gauteng. We have invested R20 million rand in a state-of-the-art training centre, which was built to support SA, as well as Sub-Saharan Africa. The primary purpose of the centre is to train technical and non-technical staff, with customer service being a major point of focus.

We have also started a schools program to attract quality candidates into the motor trade. We approach technical high-schools and host career days at our Training Centre, where we encourage matriculates to join our industry.

We take complaints regarding our service seriously and welcome readers' comments as we always looking for ways in which we can improve and increase customer satisfaction. We have grown to almost 100 dealerships throughout the country and we are aware of some problem areas. Please feel free to address any concerns or compliments in writing to our Customer Care Centre by e-mail to customercare@hyundai.co.za.

As an official main sponsor of the 2010 Soccer World Cup, what does your sponsorship entail? Is there any benefit for the South African consumer apart from the possible flooding of the second hand market once your commitments are fulfilled?

The main responsibility lies with Hyundai Motor Company Korea, and we will be expected to supply vehicles and arrange promotional activities before and during the World Cup event.

We won't be flooding the used vehicle market, and have already started discussions with rental companies who will be utilising these vehicles for an additional 6-12 months. After this they will be released to the used car market in a staggered manner.

We are excited and proud to be the official automotive partner of the FIFA 2010 Soccer World Cup. We believe this is a once-in-a-lifetime opportunity, not just for Hyundai, but for the whole of South Africa, and we aim to leverage it as such.

Are there any plans to extend the service plans on some of your models? And would you be following your sister company Kia in offering a 10-year warranty?

Customers have the option to extend their standard service or maintenance plans at the time of purchase at an additional cost. However, our standard service and maintenance plans add significant benefit to the customer, while keeping our vehicles at competitive retail prices.

The 10-year warranty was a local strategy that KIA SA initiated. Obviously there are costs involved when adding an extension of this magnitude to your vehicle's warranty.

Data received from finance institutions has proven that the average new Hyundai is traded in on average every 2 years and 10 months, which places our 3-year/100 000km full factory warranty on par with the industry standard.

There are also comments about long waiting periods for parts that have to be sourced. What is your position on this and on the availability of parts for older cars?

Currently we have a 93% first pick ratio, which means that we supply 93 out of a 100 parts, first time. We carry a parts stock holding of approximately R30 million, and can continue to supply parts for models 10 years after they have been discontinued or longer, depending on demand.

The remaining 7% of parts we don't hold are flown in. This could take anything between 4 days is part is sourced from Belgium, and 14 days if the part has to be flown in from Korea. The correct process when a part is not in stock requires the dealer to order the part as VOR (Vehicle off road). This will ensure that the parts will arrive in time and prevent unnecessary delays. Customers are welcome to confirm the order status with the respective dealership.

Hyundai Parts Department offer a further service to customers that have been involved in an accident. By emailing your vehicle and panel repair shop details to panel@hyundai.co.za Hyundai Parts Department:
1. Will ensure that the vehicle is repaired by a Hyundai approved panel repair shop
2. Protect the customer against poor workmanship by ensuring that no parts are supplied to panel repair shops that have not been approved by Hyundai SA. In these instances Hyundai will inform the customer that the vehicle is at an unapproved supplier and will, in conjunction with the insurance company, arrange that the vehicle gets moved to an approved supplier.
3. Will track all orders for panel and parts to ensure timely and correct supply.
4.Will inspect the vehicle upon completion to ensure quality workmanship and the validation of the full factory warranty

Will you be expanding the Elantra and Accent ranges to include diesel models? And why do you not offer the Tucson diesel in the 4X2 derivative? Will the Tucson be updated soon and could the changes include a manual gearbox or a five-speed automatic gearbox and a bigger diesel engine?

We will not be introducing diesel derivatives of the Elantra or Accent in the short term. Should the diesel segment in South Africa show significant growth we will definitely reconsider our position.

Unfortunately the option of a 4x2 diesel Tucson is not available to our market. We have requested the development of this model as well as the introduction of the 2.0 VGT diesel engine, which provides significantly more power and fuel efficiency.

We have no indication from HMC Korea regarding a facelift of the current Tucson and don't expect anything in the near future.


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