AM: How will you boost your corporate market share and will it be profitable for dealers?
TW: Most dealers think that there’s no money to be made from fleet. You don’t make a lot of money on large fleets, but there are the small to medium enterprises and they are businesses that have 10 cars.
They’re interesting because they buy on contract hire, but everything else is like a retail customer.
It may be that the dealership doesn’t make a big amount of money, but they will get the aftersales business.
Fleets have to have their cars properly maintained and so secondly, when these cars are back in for a service, dealers will see a knock-on effect with fleet customers looking at other cars in the range for friends and family members.
The big challenge the network has on fleet is the financial drain that some of those vehicles can have. If you’re a relatively small dealership and someone orders 40 cars and they have to go out in one month then we would start looking at how we can help with the funding of that.
We will rarely be doing deals of that size anyway, it’s more likely to be fewer than 10.
AM: How are you boosting customer retention to boost servicing work for dealers?
TW: Having a five-year triple care package with warranty, breakdown and healthcheck cover means that people who buy Hyundai will come back into our franchise for the next five years.
We encourage all our dealers to do a service plan and they use a variety of different third party suppliers for that. However, at the launch of the i30, we’ll do our own three year service plan for £299 or £9 a month on a PCP.
Our absorption has dropped slightly to just under 70%, but we’re starting to see more people come back into the franchise.
AM: Has the Veloster been as successful as you hoped and has it clicked with Coupé customers?
TW: It’s definitely a Marmite car and it’s only been out for six weeks. We’ve far exceeded target in January and we’ll hit the target for February. The biggest element for us is awareness.
There will be a Veloster Turbo coming in the summer for customers that want more power. The Veloster advert did a lot for us, but it will take a little bit of time for people to understand it.
Every dealer has sold a couple and we’re only looking to sell 3,000-4,000 for the year. We’re on track to hit target.