By on January 12, 2010

Assured success?

NPR reports that Hyundai’s Assurance Plan, which is widely credited for much of that automaker’s success since the financial meltdown, has been taken advantage of fewer thn 100 times since it was instituted a year ago. In that time, Hyundai has sold over 435k vehicles, meaning the program has cost surprisingly little. Hyundai Motor America CEO John Krafic explains:

we treat it almost like a kind of insurance, a kind of social insurance, so we had to make some, you know, financial set-aside for it. And in the end, it ended up being substantially below what our expectations were, thank goodness.

According to Krafic, the program took only 37 days to implement. [Hat Tip: ClutchCarGo]

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21 Comments on “Fewer Than 100 Vehicles Returned Under Hyundai Assurance...”


  • avatar
    superbadd75

    Between the 10yr/100k powertrain, Hyundai Assurance program, and the much improved lineup, it’s easy to see why Hyundai is kicking serious ass right now. They’ve got  a long way to go before having serious market share, but they’re obviously very serious about success.

    • 0 avatar
      rockit

      Fleets helped Hyundai out too……
      http://www.autonews.com/apps/pbcs.dll/article?AID=/20090413/ANA03/904130334/1178#
       

    • 0 avatar
      Lemmy-powered

      “Serious about success” … leads to … “kicking serious ass” … which will produce … “serious market share.”

    • 0 avatar
      Disaster

      Fleet sales are up because the rental fleets are finding Hyundais and Kias to be values just like the populace.  This is unlike how it was years ago when the U.S. manufacturers owned the rental car companies and used them to prop up their numbers.  We are seeing the independent rental car companies choosing Asian cars over U.S. cars more and more.

    • 0 avatar
      rockit

      Disaster:

      That is twisted logic.  Hyundai is funneling fleets to prop up numbers – plain and simple, you can spin it however you like in your mind.

    • 0 avatar
      don1967

      rockit,
       
      #1  The link about fleet sales is nearly a year old.  You need some fresh material.
      #2  All carmakers have fleet sales.
      #3  Unlike other carmakers, Hyundai is not using fleet sales to “prop up numbers” as you say, but rather to build positive image:
      http://subscribers.wardsauto.com/ar/hyundai_fleet_sales_091223/wall.html?return=http://subscribers.wardsauto.com/ar/hyundai_fleet_sales_091223/

  • avatar
    gslippy

    By comparison, GM let their 60-day money-back guarantee expire in November.  So much for standing by their product.  But I recall that it didn’t issue many refunds, either.
     
    GM’s focus seemed to be on product trevails (negative); Hyundai’s focus is on customer trevails (positive).

  • avatar
    jkross22

    That’s great ROI for Hyundai.   Shows what can happen when someone with a creative idea is allowed to run with an idea.  Are you paying attention, GM?  Probably not.  Time for your meds anyway.

  • avatar

    I had a gap insurance with my CU. You don’t really need a Hundai for that.

  • avatar
    ClutchCarGo

    This is equivalent to inviting your mother-in-law to join you on a trip only to find out that she’s already going to visit her sister at that time. You get credit for the offer but you don’t have to deliver anything. Sweet.

  • avatar
    CarPerson

    So National Public Radio (NPR) poked around until they found someone who would state that much of Hyuandai’s success was due solely to the Assurance Plan. This is what NPR classifies as “investigative journalism.”
     
    To report that 80% of their models are above average in reliability (GM’s are 80% below average), fit-and-finish is near best-in-class, warranties are best-in-class, and most buyers are reporting an excellent showroom and shop experience would violate NPR’s political agenda.

    • 0 avatar
      geozinger

      What day/date did you hear this report? I generally find NPR’s reporting about anything automotive entirely mainstream, and occasionally, a little behind the times. Not that it is so far out of date to be useless, but usually has been reported by other media several days in advance of when it’s aired on our local affiliates. Of course, I live in Michigan, so I get lots of auto news whether I want it or not, but it seems to me that  NPR  lags behind other media in reporting automotive news that isn’t headline making already.

    • 0 avatar
      Disaster

      I agree that only part of Hyundai’s sales success is due to their Assurance program and 5 year/60K warranty.  The rest is because of their value compared to the competition and their steadily improving quality…above any U.S. manufacturer…and a couple Japanese brands.

    • 0 avatar
      ClutchCarGo

      Here’s a link to the original report:

      http://www.npr.org/templates/story/story.php?storyId=122372379&ft=1&f=1006

      The person being interviewed is not just “someone”. It was Hyundai Motor America’s president and CEO, John Krafcik. And he didn’t say that Hyundai’s success was due solely to the Assurance program, merely that it had a role, altho it’s impossible to say how much. If you bother to listen to any of their coverage, you would find that of all broadcast media, NPR has the least blatant political agenda (if any), and the most balanced and comprehensive coverage of many subjects. Of course, that would challenge many of your most dearly held beliefs on politics and social issues, and force you to re-evaluate those beliefs, which is understandably uncomfortable. It certainly does when I listen.

    • 0 avatar
      ravenchris

      Thank you Clutch, more signs of life on TTAC…

  • avatar
    Z71_Silvy

    There is not an automaker out there that is properly prepared to battle the machine that is Hyundai.  They are going to soar in the next couple of years taking HUGE amounts of market share.  Ford and GM will suffer the most.

  • avatar
    Juniper

    don’t know the real terms of the program. Did anyone attempt to come back but didn’t when they learned the real terms?

  • avatar
    jrmn12

    Response to Juniper’s question:

    I did come across an issue with the Hyundai Assurance program that I can share with those considering the program. First, I do love the Genesis Coupe, but after lost income I wanted to return it and hopefully buy again once my situation improved. The program DOES NOT repay any downpayment, so if you are looking to lease or finance do not make a large down payment. I did, and unfortunately even though I have been approved to return my car under the program, I would get less back than I would if I went on my own and sold in the private market. I was told by WalkAwayUSA that only the financed part is covered, no refund of any down payment. Hope my experience helps you out there who are looking into this program.


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