News - January 5, 2007
New Year's Message from Frank Ferrara
We closed out another great year for Hyundai Parts Departments around the U.S. Total volume was up 5.5% over 2005 but more importantly, customer pay volume was up 15%. We made a significant transition away from warranty sales and toward more customer pay business. We also made some significant structural changes. Our new Market Based Pricing approach to the crash parts business is a major step that will help protect market share and deliver the total collision job to Hyundai dealers. The Spring and Fall direct mail programs generated significant traffic and help to increase overall customer retention by 1%. The accessories program took a big step forward with the introduction of the Garmin navigation system but we still have some work to do on the overall product line up.
As we look to 2007, we see continued growth in the customer pay business, a further decline in per unit warranty sales but an increase in warranty units in operations which should keep warranty sales flat with 2006. One of the biggest opportunities will be in accessories. The line-up will be better than ever and we will add more marketing support to accessories. The other opportunity for 2007 will be mechanical wholesale. We will launch new programs designed to give us a bigger share of the mechanical market.
You can also look for a new dealer-to-dealer sales program to launch before summer. This will allow dealers to purchase parts from each other to fill critical needs or to reduce excess inventory. We are committed to providing the best Parts support in the industry. As always we appreciate the great job that every Hyundai Parts Manager does to satisfy customers and build the Hyundai brand. Thanks for a great year in 2006 and we look forward to an even better year in 2007!
Frank Ferrara Hyundai Motor America Vice President of Parts