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Hyundai Motor EuropeHME Dealer Network Development

Presentation June 27th, 2007

Jens C. NaglEuropean Dealer Network DevelopmentHyundai Motor Europe

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Hyundai’s current Situation in EuropeHME Overview

Entering Europe in 1978

Established 2000Hyundai Motor Europe

28 Markets and 2.500 dealers

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Hyundai’s current Situation in EuropeSuccess in Figures

Sales growth Europe1995 - 2005 +218%

110,000

220,000260,000

280,000

350,000

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Hyundai's current Situation in EuropeAttractive Model Range

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Hyundai's story of success and the influence on the Dealer Network Development

Time

Number

SourceNetwork

•Ind. Garages•Used car dealers•Dealer fromother brands

•Satellites •Dealers fromother brands

•Multi-brand

•HyundaiDealer groups

•Multi-brand groups

Main FocusQuantity Quality

Europe Sales /

No of DLRs

IncreaseSales per DLR

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Hyundai's story of success actual Dealer Network

Dealer Network 2007

40%

60%Multi BrandExclusive

•Large differences across European markets

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Hyundai Dealer NetworkIdeal Network Structure

Ideal: Exclusivity, Hyundai dealers groups with satellites

Time factor- development of a mainly exclusive Dealer network

Fast growth – needs fast development

Strategy: Individual best network solution in each market - to secure capability, capacity and viability of Network

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Dealer Network strategyPurpose of manufacturers

Multi-brand” is the also a chance to be represented in countrieswith low local potentials or difficult structures e.g. Switzerland, Austria, Scandinavia…

Hyundai low service hours and UIO / Business case

Dealer groups with professional structure became interested

Developed customer data base / Hyundai highly competitive

With good success from beginning Dealers improved appraisal on Hyundai

“Groups” have often professional structures, butalso high dependency, lower loyalty and higher financial risk

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Dealer Network strategyIntensions of Dealers to go to second / third brand

just substitute lost market shares

manufacturer supports seem to be most interesting

show the brands/products mixed in segment presentations

Dealers who are just focusing on their total market share, less loyal and less brand focused

if already overachieving national average with first brand, “no” chance for further growth, then multi-brand is a reasonable decision

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Not every brand is the right supplement for the first brand

Dedicated staff / clear Responsibilities/Job descriptions/ separate targets….

Showroom/ Brand separation / Brand and Product experience/

People business: Staff loyaltyBrand responsibilitySeparate StaffKEY Factor: Long Term HR Strategy

Dealer Network strategyKey drivers for success of multi-brand dealers

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Hyundai Motor Europeand the Dealer Network

What's next…

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ProspectsStrategy: Brand Building + Football as Communication Platform

Quality Self-assured

Inspiring

Refined andConfident Continuation of Cooperation

with FIFA until at least 2014

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ProspectsStrategy: Expand and Enhance Presence in Europe

Establish a new production plantin Nosovice / Czech RepublicGroundbreaking April 2007

First “Made in Europe” Hyundai in early 2009

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ProspectsProduct i30

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Thank you for your attention!