HYUNDAI TO ADJUST STAIRSTEP PROGRAM

Hot topic: ’06 Sonata

January 31, 2005—Hyundai is adjusting its stairstep incentive program to make it more amenable to small dealers, the automaker announced at its franchise meeting Monday. Executives did not provide many details.

The program, which currently offers a per-car cash bonus based on sales volume—with large dealers getting a bigger bonus per car—is a “lightning rod,” said a small-volume Oregon dealer who attended the meeting. “Small dealers are very unhappy with it; big dealers are very happy.”

Hyundai also described its new exclusivity incentives to dealers. The maker won’t help pay for the store but will give exclusive dealers a co-op ad bonus, floor-plan interest assistance, and extra allocation, among other inducements. “Dealers like the fact that [Hyundai is] not forcing exclusivity,” said Donnie Ward, Martin Swanty Hyundai, Kingman, Ariz. He said the incentives are good but don’t make such a difference as to seem unfair to dualed dealers.

Hyundai executives also said that the redone Sonata is set for release in late April.