Automotive News - February 18, 2008 - (Page 59)

FEBRUARY 18, 2008 • 59 NADA MAKE MEETINGS Execs’ exit stuns Kia dealers Kathy Jackson kjackson@crain.com Highlights Len Hunt and Ian Beavis gone Dealer profits must rise Floorplan help is promised “They said he (Hunt) resigned this morning,” Phillips said. “So did Ian Beavis.” Loveless continued with his presentation. Then restless dealers wanted to hear from Ahn, who had sat on the stage in silence. Dealers were concerned, said Don Hicks, owner of Shortline Kia in Aurora, Colo. After all, Peter Butterfield, Hunt’s predecessor, was fired as CEO at a dealer meeting in Las Vegas in 2005. “After Loveless did the presentation, Ahn came on at the end,” Hicks said. “He stood up. That had to be a tough stand. “He basically said: ‘Follow me. I will not let you down.’ It was good that Ahn stood up and made those statements. The meeting ended on a positive note.” There was no mention at the meet- SAN FRANCISCO — There was shocking news for Kia dealers at the NADA convention. At the make meeting, they learned that the popular Len Hunt, CEO for just two months, had left. So had Ian Beavis, the charismatic marketing vice president. Although most of the dealers think Hunt and Beavis were fired, they were told the two men resigned the day of the make meeting — Feb. 10. Taking over Hunt’s duties is Ahn Byung Mo, who on Feb. 5 was named to the newly created position of chairman and group CEO of Kia Motors America and Kia Motors Manufacturing Georgia. There was no word on a successor to Beavis. Ahn was CEO of Kia Motors America from 1999 through 2001. Tom Loveless, Kia vice president of sales, chaired the make meeting. After about 30 minutes with no mention of either Hunt or Beavis, Tacoma, Wash., dealer Ken Phillips stood up and asked about Hunt. Ahn Byung Mo: Taking over for Len Hunt ing why Hunt and Beavis left. Hunt had been executive vice president of Volkswagen of America Inc. before joining Kia as COO in October 2005. Beavis came on board as the top marketer in May 2005. Dealers said they feel confident that the company will move forward with Ahn. They say he has committed to help dealers with their top concerns: a lack of floorplanning assistance, more marketing and advertising dollars and new programs to enhance dealer profitability. “It’s tough when this type of news breaks at a convention like this,” said Jim Smail, owner of Smail Kia in Greensburg, Pa. “They tried their best to put a good spin on it.” c Action Events are generating RECORD-BREAK t now? dealers across the country. What’s hot righ ARE YOURS? ING RESULTS for Chevrolet Dealer - Lakeland, FL “Sold 40 cars during the CarFax Clearance, that’s 25 MORE THAN AVERAGE, and the GROSSES WERE HUGE! We’re making this event part of our used car marketing plan for the entire year.” Nissan Dealer - Phoenix, AZ “Not only was this a great sale, we saw the BEST CREDIT SCORES EVER plus we grossed an average of $2000 MORE PER UNIT and we took in better trades.” Dodge Dealer - Oklahoma City, OK “We had HIGHER GROSSES and BETTER QUALITY TRAFFIC with this event.” www.ActionIM.com ACTION INTEGRATED MARKETING PROVIDES FULL-SERVICE & EVENT MARKETING SOLUTIONS FOR DEALERSHIPS NATIONWIDE Get More Information Online At 800.478.8818 EXT. #152 Large Hyundai dealers get more room to roam Mark Rechtin mrechtin@crain.com Highlights Consolidate metro dealers Launch Genesis sedan Hit 500,000 sales SAN FRANCISCO — A Hyundai plan to consolidate dealer holdings in major metro markets appears to be gaining traction. The plan is patterned after Saturn’s use of exclusive regional territories by larger dealers. The plan is on a market-by-market evaluation and will not be applied nationwide, said Dave Zuchowski, Hyundai vice president of sales. Hyundai’s most important markets are in California. For example, the San Francisco area has several open points. Hyundai will let existing strong dealers expand their market territory rather than give the open points to new dealers, Zuchowski said. Hyundai will help dealers finance their expansion. In the near term, Hyundai will concentrate on both ends of the product spectrum. The new Genesis luxury sedan will receive a large marketing push. Also, the parent company will send the United States an additional 30,000 units of the Elantra and Accent cars for fuel efficiency-minded buyers, said Bill Underriner, president of Underriner Motors of Billings, Mont., and Hyundai’s NADA line representative. The Genesis launch campaign will consist of more than TV commercials, the first of which were seen during the Super Bowl. A 15-city ride-and-drive program, patterned after luxury-brand events, will be tied to dealerships in those markets, said Joel Ewanick, Hyundai vice president of marketing. Barry Frieder, COO of Potamkin Automotive Group in Miami, said the Genesis launch will represent a big part of Hyundai’s attempt to bridge consumers’ quality perception gap. The building Genesis, Elantra and Accent volumes, in addition to a full year of the Veracruz crossover, should enable Hyundai to grow to its 500,000-unit target. That would represent a sizable gain over the 467,009 units sold last year in the United States, when Hyundai fell far short of its 550,000-unit target. At the same time, Hyundai has boosted regional dealer advertising association budgets from $63 million last year to $160 million this year, Frieder said. That will give dealers more share of voice in local markets. The tradeoff in the marketing budget is fewer experiential marketing events and a reduction in the auto show budget, Zuchowski said. Another Hyundai tradeoff involves the way it pays dealer cash bonuses. Last year, Hyundai based the program purely on volume objectives. Smaller dealerships had a hard time reaching the goal. At least 30 percent of dealers never saw a cent. This year, the average payout will be about $600 a car, Frieder said. While the goal will be easier to reach, high-performing volume dealers won’t see as large a total payout, Zuchowski said. Underriner said smaller dealers continue to worry about profitability. About 25 percent of Hyundai dealers were in the red last year. c http://www.ActionIM.com http://www.ActionIM.com http://autonews.com/Nissan50

Table of Contents Feed for the Digital Edition of Automotive News - February 18, 2008

Ford cuts equipment combinations on '09s Lenders shun subprime market Toyota dealers test satellite service centers Despite cost, more carmakers use laminated glass Merger produces turnaround firm Chrysler would shut to move Plastech work Jeep accessories: Mo' for Mopar Auctions: Repos are rising Automakers face more child safety rules Supplier Personnel Family-owned stores could be tough sell for consolidation What would lineup be with brands under single roof? Mercedes will pay $9.5 million to settle suit Beru revamps strategy to boost profits, growth Jaguar: Dealers take 10,000 customer deposits for XF sedans Chrysler exec: Performance segment will survive Mahindra to offer hybrids in U.S. Mazda ad agency hires VW and Mini creative whiz Icy weather and perhaps boredom chill roadster sales GM, Saturn: What's after Reynolds? Ford: Mid-sized model year for mid-sized cars Kia's new American boss: Let's boost sales Rolls gets sporty Luxury brands push to meet demand in Russia Dealer is makers' best voice in D.C. Get real, Kia, Hyundai Face it, Detroit: Trimming dealers will be expensive GM has confidence in the Chevy Volt It's no wonder auto sales are declining A workable idea: GM dealer buyouts It's deja vu again with reborn 2CV Nothing beats face to face There's a person behind that e-mail Buying cars online makes perfect sense Bush seeks to save 2008-11 CAFE rules Personnel Lear investor: No regrets about blocking buyout GM CFO is mum on more aid to Delphi Dealers Road to tomorrow is paved with plastics Council aims to keep Ford current on environmental issues VW ponders Phaeton's U.S. flop, may try again McGuffie is Covisint's president In hydrogen race, Mazda seeks quicker route Suit seeks to enforce title-washing remedy Suppliers to the 2008 Buick Enclave Mercedes, Audi warn dealers: No sales for export Sykora wants CAFE flexibility Minority dealers see tough times in 2008 Arlena Sawyers Toyota goal: Create stress-free store NADA's Taylor predicts 15.7 million U.S. sales this year Honda widens support for dealer ad groups Jay's jabs Survival 101: Get lean, work harder Microsoft will test dealership system Farley wants market-by-market sales strategy Entertaining the troops Report: Detroit 3 cutbacks curb rental-fleet sales Dilts: High interest rates hurt industry GM asks for dealer assistance on quality On the Record Fisker: We're close to making plug-in car J.D. Power exec: Internet leads are slipping away Minority auto group nears 2 deals Garmin makes navigation technology deal Tenneco wins Ford work B-P-G focuses on new product push Volvo offers cash to thin the herd Cadillac challenges dealers to boost sales Chevrolet can stay No. 1, if it will fight GM will push a green marketing message Saturn is expected to be GM's growth brand Certified used sales help Honda dealer profits Hummer counts on pickup to perk sales Mazda will boost marketing budget, unveil Mazda6 Saab dealers to get new vehicles Toyota wants even better customer loyalty Infiniti stresses profits and customer satisfaction Mitsubishi CEO sets tough U.S. sales goal Nissan exec: New models will boost per-store sales Suzuki dealers cheer return of incentives Ford to boost dealer margins Jag dealers anxiously await the XF Ford executives vague about Mercury future Subaru dealers want diesels, hybrids Acura upscale shift inspires 'great faith in the future' BMW readies national loaner-car program Land Rover: Future upbeat, unclear VW dealers get vehicles on wish list Chrysler dealers OK with consolidation plan Mercedes pushes dealership standards Porsche shrinks as luxury segment lapses Large Hyundai dealers get more room to roam Execs' exit stuns Kia dealers Ford recalls 180,000 trucks over door part, fuel hose GM posts massive loss; eyes N.A. profits by 2011 Big-truck sales fall 33.5% in Jan. WTO rips China's tariffs on imported auto parts Fiesta will rejoin the party in the U.S. UAW's Valentine to Delphi: Hands off our pensions Rx for dealership flux: NFL draft + Mideast bazaar Toyota gets the boot in Mexico Nissan triples female managers Silverado hits a million, rolls on

Automotive News - February 18, 2008

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