In the U.S., new vehicles are almost universally sold to customers by dealerships; independent retail locations that are not owned or directly operated by automakers. Still, these locations are the face of each company, so it’s important they adhere to strict brand guidelines. Of course, it’s also critical that all these stores look and feel the same, and are properly modern to help attract and retain customers. From time to time, automakers work with their partners to remodel or completely revamp dealerships, and that is exactly what Hyundai is in the middle of doing.
Enhanced Customer Experience = More Vehicle Sales
The massive South Korean automaker’s ongoing Global Dealership Space Identity (GDSI) program is now 50 percent complete. So, what the hell does that mean? Well, Hyundai is working to improve its customer experience by making retail locations more premium and consistent. So far, more than 457 dealerships have completed renovations; 60 percent of the manufacturer’s U.S. locations are expected to have finished being upgraded by the end of the year.
Some automakers these days are selling vehicles directly to consumers, cutting out dealership “middlemen,” but Hyundai has no plans to follow this path. Instead, the company claims it remains committed to the current franchise business model and its dealer partners.
This program was introduced back in 2015, and the automaker updated it in 2019. The goal is to make sure all Hyundai dealerships have a uniform architecture and standardized customer experiences regardless of location, from tiny, rural communities to massive metropolitan areas.
In a media release shared by the automaker, Rob Grafton, senior vice president, global director of network development at Hyundai said, “Our vehicles have evolved dramatically in both design and quality, and this ensures that our facilities and customer experience reflect that same transformation.” The executive also noted, “Dealerships that have adopted this voluntary initiative perform better, with higher profit, return on sales and service retention,” all good things in a crowded market rife with strong competition.
Hyundai Sticking With The Franchise Model
Some automakers these days are selling vehicles directly to consumers, cutting out dealership “middlemen,” but Hyundai has no plans to follow this path. Instead, the company claims it remains committed to the current franchise business model and its dealer partners. As vehicles get more complicated, these upgraded facilities will better cater to customer needs, supporting “education, service, and long-term engagement.”
Another advantage of having a traditional dealership network is that it enables automakers to do many other things. As Hyundai points out, retail locations allow them to easily participate in philanthropic activities, including Hyundai Hope on Wheels, as well as a nationwide education program about car seat safety. These activities would be extremely difficult to do without a wide range of dealership locations.
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