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KIA’S Australian dealer network numbers are unlikely to increase any time soon as the company focuses on continual improvements to its retail sales and aftersales service levels.

The network now stands at 121 dealers across Australia and Kia Motors Australia (KMAu) chief operating officer Damien Meredith said it was more important to ensure the dealers were profitable before thinking about adding more retail outlets.

“I don’t envisage any great growth over the next few years,” he said of the network at a media event in Melbourne. “What’s most important for us as a brand is we have got to keep growing the sales per dealer (SPD). If we keep growing that we can put in a couple of more additional dealers to fill growth areas – we will do that but SPD is very important to us.”

Customer first: Kia's ranking in the JD Power Australia Customer Service Index Study lifted significantly last year, but the company is still keen to improve its aftersales service.

Customer first: Kia’s ranking in the JD Power Australia Customer Service Index Study lifted significantly last year, but the company is still keen to improve its aftersales service.

When asked by GoAuto whether the dealers were under pressure to reach KMAu’s aim of 39,000 sales this year, Mr Meredith said the network was generally responsive to targets and that many of them were exceeding required sales targets.

“We set realistic targets. This year it is 39,000 (sales) but the dealers on average do 112 per cent of their target. They are pretty comfortable, pretty happy. And we reward for over achievement so they are pretty happy.”

Mr Meredith said there were areas where both KMAu and the Australian dealer network could improve, but that it was generally a positive relationship.

“Like any relationship between franchise and franchisee, there are lots of things we can do better and lots of things they can do better. We have got to keep working at those things and make sure the relationship is strong. We have quarterly meetings with the dealer council. All the senior team, including myself, are always out and about talking to dealers.

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“It’s never 100 per cent but that’s the way it is. We work in a multi-franchise environment so you have to be on the ball all the time. You can’t be slack in any area because, rightfully, they can direct their energies to another franchise that can affect your volume, your business.”

Kia’s standing in the annual JD Power Australia Customer Service Index (CSI) Study has continued to improve, with the car-maker jumping five places from ninth – below the industry average – in 2014 to fourth last year.

Kia’s elevation to near the top of the rankings pushed its sister company, Hyundai, to sixth in 2015, just below the industry average.

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Mr Meredith said internal metrics and regular surveys were showing continual improvement in the satisfaction ratings of customers, but added that it could still do better.

“We are doing relatively well. Our CSI is growing which is great. But again I think we can improve a lot and I think we can improve a lot in the sales area too. But you can’t just look at the survey and say, ‘yeah we are doing alright’. I will be happy when Kevin (KMAu general manager of media and corporate communications Kevin Hepworth) doesn’t get emails.

“The demands have become more and more from the consumer – rightfully so.”

By Tim Nicholson

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