New car shortage is a ‘good situation’ for dealers, says Kia UK boss

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  • #166686 Reply
    Brydo
    Participant

    The current new car shortage is a ‘good situation’ for dealers, the UK boss of one car company has said.

    Kia Motors UK president and CEO, Paul Philpott, believes the shortages in new car supply is a positive thing for his dealer network, as it’s allowing them to change their business models and learn new ways of managing customers’ expectations.

    ‘We can’t brush this under the carpet – supply is tough,’ Philpott told Car Dealer.

    ‘If you’ve got demand exceeding supply, any economist will know that means prices will go up or your margins go up, which is good for us and the dealers.

    ‘It’s about managing a different process and not having a compound full of cards that you turn to and say: “Which one do you want?”

    ‘This is a good situation, but one that we’re having to learn new ways of doing business.’

    Philpott said he believes the current new car supply shortage is ‘certainly here for the medium term, if not the long term’, with ‘below optimum stocking levels at least through the first half of next year’.

    He said this inevitably means longer order banks, and puts a new spotlight on customer management.

    ‘We have to manage as effectively as we can those customers who are having to wait for our cars at the showroom floor. That’s frustrating – there’s nothing that a salesman likes more than to sell a car and be able to say: “We’re going to deliver it to you in two weeks”.

    ‘Historically, that’s what he’s learnt to say, and that’s changing. And you know, the way we remunerate sales staff within a short supply situation has to change too. And it’s all this learning that we are doing hand-in-hand with our dealers.’

    Philpott was speaking as Car Dealer handed over the Manufacturer of the Year 2021 trophy – the top accolade in the annual Car Dealer Power awards. You can watch the full interview in the video at the top of this story.

    The Korean carmaker took the top gong for the second year running, taking its total number of wins to six, and meaning it’s the most successful brand in the survey’s 10-plus years of running.

    It received a mighty 96.5 per cent across 13 categories, one of the highest scores ever achieved, and beating German giants BMW and Mercedes-Benz to the spoils. Click the video above to see which other manufacturers Kia beat in this year’s survey.

    The brand achieved near-perfect 99 per cent scores for warranty, but, perhaps more importantly during a Covid-affected car market, it got a 99 per cent score for accessibility to senior management.

    ‘There was no guidebook or instruction manual on how to manage a business through a global pandemic,’ said Philpott. ‘We’ve been through all sorts of times to work out what was the best thing to do. We haven’t got everything right but we’ve made the best decisions we could with the information we had.’

    He added: ‘It’s been a rollercoaster, and I think we’ve learned a huge amount. I think this is evidenced by the last five months of performance – we’re coming out stronger and better able to service the customer.

    ‘Even in a short supply situation, our dealers are better able to make money from our franchise and profitability is running at record levels. And I think, despite all the challenges we face, our partnership is stronger than ever.’

    He went on to say: ‘We’ve got every one of our franchise dealers through the last 18 months, which is something we’re incredibly proud of, and they’re now prospering off the back of our fantastic product range – perhaps slightly better supply than some other competitors are facing.

    ‘The future for Kia looks great – there’s EV6, which I think is a real game-changer for us, and new Sportage which has been the backbone of our franchise for the last decade.

    The only person who got all his work done by Friday was Robinson Crusoe.
    Anything i post over three lines long please assume it is an article lol.

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  • #166715 Reply
    ChrisK
    Participant

    Short version of above.

    The boss of a company he works for thinks his company is great and is looking forward to ripping off there customers.

     

     

     

    #166722 Reply
    Warkman

    Ripping off? Why? Because they don’t sell a car as cheap s chips so you can get more car for your money, whilst reducing development money for future and paying its workers less?

    reality seems to be missing from some peopkes views of the actual world

    #166734 Reply
    ChrisK
    Participant

    Well you say that but all I hear here is moan, moan, moan about increases in Motability AP’s but going by what your we saying is we deserve to be screwed by manufactures and nobody said anything about cars as cheap as chips and what do think the AP prices are linked to.

    I’m fine with folks who love to pay over the odds for their cars, internet, gas, electric and everything else in life but you seem fine with the bulls muck coming out of some boss who blatantly said there fine with higher price that are being passed on to customers including Motability customers.

    Still never mind when folk see there Winter heating bills next April they won’t be buying new cars and the prices will drop and no doubt British Gas boss will say he’s happy with higher prices, under breath of course.

     

     

     

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