Hyundai’s “Hyundai Assurance Program” has proven to be a smash success — allowing for customers to return a car if the suddenly lose their income — prompting the Korean automaker to consider an extension of the program. Following Hyundai’s launch of the Assurance Program, automakers such as General Motors and Ford launched variations of their own.
Hyundai North America CEO John Krafcik revealed to Reuters on Wednesday that the Korean automaker is seriously considering an extension of its Assurance Program. The program is set to run through the remainder of the year, but Krafcik added: “We’re thinking now about how much further we should take it.”
Although fewer than 50 Hyundai buyers have exercised the Assurance Program, the program has significantly bolstered the company’s sales over the past few months. Through the first 9 months of 2009 Hyundai’s sales were up 2 percent, compared to a 30 percent sales decrease for the overall market.
Hyundai is predicting the market to improve to between 11 million and 11.5 million units next year. Although slightly more conservative than most estimates, that rate will likely see Hyundai increasing its current 4 percent U.S. market share – especially if the Assurance Program sticks around.
10/22, 12:46 PM
posted by:
JakeK66
Do dealers really expect us to believe they pay invoice for their cars? A little off topic I know, but it’s a joke.
10/22, 12:47 PM
posted by:
85ZingoGTR
They shouldn’t get rid of it. They’re going to do the same thing Volvo did with the Safe + Sound plan where they took it away, they got hurt by doing that, and then they brought it back. I advise Hyundai to keep the Assurance Program permanent.
10/22, 1:06 PM
posted by:
leftwingagenda
if they only had 50 cars returned, yet get a big boost to their marketing and reputation, it’s worth it…and it’s not like those 50 cars weren’t immediately re-sold…
10/22, 1:17 PM
posted by:
85ZingoGTR
I work in the engineering field which has alot involved in the art of business and marketing. And little things like this determines whether you will sell well or not. Even if a client or customer won’t need it, just knowing that its available to them when they purchase the product really helps sell the product. You’d be surprised how little things like this helps sales.
10/22, 2:01 PM
posted by:
jayjc08
Wish I could have gotten that kind of assurance with the wife
Just kidding!
10/22, 3:41 PM
posted by:
Dingleberry Divas of Dallas
^^^ @ jayjc08
You and me both buddy!! LOL
10/24, 8:34 AM
posted by:
alsvw
if its helping them sell cars. then why not just keep the incentive? Hyundai is on a roll to make over $1.7 billion this year.
http://www.hyundai-blog.com/index.php/2009/10/22/hyundais-q3-profit-surges-to-record-high-827-million/