On the biggest challenge for fixed ops during Hyundai's decadelong growth spurt
It's finding the right people, and training and retaining them. The job of the service manager or the service adviser has gotten a lot more complicated over the last 10 years. You have vehicle technology you need to understand. You add tablets to the service drive, more digital inspection equipment, loaner car programs, Wi-Fi, cybersecurity issues, etc.
These are things that 10 years ago didn't exist. It's gotten a lot more complicated for technicians, advisers and managers, and we don't have a lot of people wanting to come into this business.
On dealers' No. 1 unmet need in improving customer retention
The biggest issue is trying to get three- to five-year owners back in. Oftentimes our dealers are price competitive -- we could do better -- but the customer has a perception that the aftermarket is cheaper.
The second part of the problem is cost management. We put a lot on the dealer in terms of facility and training of personnel and top-flight equipment. Over the last few years we've talked to dealers about getting into a multishift [service] operation, two or three shifts and to be open Saturdays and Sundays so you can spread the overhead cost.
The other piece of driving cost down is automation. Tablets help you sell more. They help the customer feel better about the visit. It demonstrates technology and some of the benefits the dealer can offer, and so we are on a big push to do that.
On providing genuine factory replacement parts for vehicles more than 10 years old
We will provide parts as long as there is demand. In some cases there is legislation that forces us to have parts available. It gets to be a bit of a challenge, with complexity increasing and we have a broader product lineup. But we are absolutely committed to doing that.
Our parts partner is Hyundai Mobis. They are our third-party parts supply company. They are adding parts warehouses around the country to keep up with demand.
On the challenges of moving into the luxury market with the new Genesis brand.
Luxury customers' expectations are very high. We see that with the Equus, which we've been selling for three years. Our Genesis lineup has attracted people from Lexus and BMW. We are putting in place lots of customer-handling requirements for the dealers, lots of special stuff. The new G80 Genesis sedan will be sold by more than 800 dealers. Executing that luxury experience is a challenge.