10:37 am, March 25, 2024
Hyundai is to cut back on how many UK dealership partners it has in a bid to ‘future-proof’ its network, it was announced today.
Labelling the reduction an ‘evolution’, it said it was putting into action ‘a transformation’ of the dealership network, with a focus on retailers that were ‘capable, resilient, and profitable’ and which were ‘ready to face the future’.
In a press release issued this morning, it said: ‘By streamlining its network, working with fewer partners, and making enhancements to around a third of its current sites, Hyundai Motor UK can create a more profitable business proposition which delivers an enhanced retail experience.’
Hyundai Motor UK told Car Dealer that the long-term reorganisation would see it reducing the current tally of partnerships from 70 to 55 by 2028-29 but the number of showrooms would be going UP from 165 to 173.
And it was keen to emphasise that it wouldn’t be targeting smaller, family-run dealerships in favour of the larger, more profitable dealer groups. It told Car Dealer that strategic, operational decisions would be made based on ‘the right locations’.
The South Korean manufacturer added in the release: ‘In recent years, the Hyundai brand has transformed into a more premium marque offering a line-up of multi-award-winning products including a highly desirable range of electric vehicles showcasing stand-out design.
‘With forthcoming electric additions, the product evolution trajectory is only set to accelerate as we move closer towards net zero.’
It said that to get ready for the product transformation, it was looking ‘to prepare and optimise’ the network in order to give ‘the best possible premium retail and ownership experience for customers’.
The plan is to maintain and eventually increase how many showrooms it has across the UK but to have them run by fewer partners.
Of its current sites, approximately a third ‘will also be encouraged to enhance their operations’, including facilities, infrastructure, performance and staff.
Hyundai Motor UK said the aim would be to improve the long-term sustainability of its dealer relationships as well as customers’ experience during the sales and ownership journey.
Ashley Andrew, Hyundai Motor UK president, said: ‘Hyundai has transformed rapidly to a desirable electrified vehicle brand in a remarkably short space of time.
‘Even in the past few years, the launch of the trailblazing Ioniq 5 and 6 – both triple World Car of the Year Awards winners – has positioned Hyundai at the cutting-edge of the electric vehicle market.
‘With that pace of evolution, we must reassess our business at every level, including every touchpoint our customers have with the brand.
‘We know our products are fantastic, but our brand perception and the service we offer our customers must keep up with that pace.
‘After a thorough review of our retail network – implemented with the alignment of our retail partners – we’re putting into action a long-term plan that will ensure the continued viability and growth of the Hyundai brand in the UK.’
This story was originally published at 10.37am on March 25 and updated at 10.57am with specific details of the numbers involved provided by Hyundai Motor UK to Car Dealer
