Hyundai has guaranteed margins on vehicles its UK dealer network sells in the first quarter in order to help them through 2009.
Tony Whitehorn, Hyundai UK managing director addressed the network in a letter which stated the manufacturer had been in talks with Bill Cook, dealer chairman of the Hyundai franchise board in order to discuss how to jointly work together to help dealers.
Whitehorn said: “To say these are challenging times for all of us would be an understatement. Manufacturers and dealers alike are having to take unprecedented actions in order to ensure they survive the storms of this economic environment.
“While we as a franchise are better placed than most others regarding our global strength, product portfolio, dealer debt exposure, pricing and recent model introductions we are not immune from a downturn in the market. So far in January the retail market has declined year on year by -28% and we are down -4%.”
Whitehorn said Hyundai realise that as a franchise it has to stand ‘shoulder to shoulder’ with its dealers through the recession.
Whitehorn said the move to guarantee margins was “unprecedented” and hoped that it showed how serious the company is about dealers’ profitability.
He said: “I hope it gives that needed certainty to go to market aggressively to sell new
cars for the remainder of the period.”