Hyundai on Thursday took control of the distribution and servicing of its vehicles in the UK with the formation of a new company, Hyundai Motor UK Ltd (HMUK).
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Under factory ownership, HMUK is confident of doubling its yearly sales by 2008 to around 80,000 cars, securing more than 3% UK market share.
New managing director of HMUK, Ray Pope, formerly finance director of HCUK, said: “This is without question the most exciting development in the history of Hyundai in the UK and Europe.
“The change from independent importer to manufacturer owned operation brings a number of key benefits for Hyundai customers in the UK. Chief among these will be our ability to invest much more, both in terms of money and time into ensuring we have one of, if not the best retail network of any manufacturer in the UK.
“Ultimately, our customers’ relationships are primarily with their dealer and it is here we will be focusing to ensure that the Hyundai experience is second to none in the UK car market.”
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By GlobalDataSales and marketing director, Jim Campbell added: “Growth is the prime reason for the decision by Hyundai to take control of the marketing and distribution rights in the UK, which Hyundai recognises as a key market in our quest to become one of the world’s top five motor manufacturers.
“The move to manufacturer ownership will mean significantly more investment in marketing to raise brand awareness. Hyundai’s sponsorship of the World Cup in Germany in 2006, for example, will be a key element of this overall awareness raising.”
Previously, the rights to distribute Hyundai vehicles in the UK were owned by RAC plc, which had owned the High Wycombe-based distributorship, Hyundai Car (UK) Ltd, since 1993.
When Aviva plc, owner of Norwich Union Insurance, announced plans earlier this year to buy RAC plc, a deal that has since been completed, Hyundai Motor Company in Korea began negotiations with Aviva plc to take control of the distribution of its own vehicles in the UK.
Ike Oh, president of Hyundai Motor Europe GmbH, said: “Hyundai Motor UK Limited will strengthen the Hyundai brand presence in the UK and tailor the specifications of our vehicles more precisely to the particular needs and wants of UK customers.”
Hyundai Motor UK Ltd employs around 200, and has 165 dealerships across the UK.
