John Patterson has been operating a Hyundai dealership in Tustin, Calif., only since March 2010, but he has already managed to quadruple the store's average monthly new car sales to 85 units.
Patterson, who also owns Mazda stores in Huntington Beach and Tustin, opines that Tustin Hyundai was underperforming while other Hyundai dealers were selling higher volumes.
He got the Hyundai dealership because he had seen Hyundai's sales and market share increase in the last two years. His success with Hyundai has also been seen in other dealerships throughout the United States.
Forty of Hyundai's 803 U.S. stores changed hands in 2010 and there’s every indication that this pace will continue. Since Sept. 1, 2010, about 19 dealerships were completed.
For example, Penske Automotive Group bought a low-volume Hyundai store near Phoenix in the first quarter. Penske spokesman Tony Pordon says Hyundai dealerships are seen as an attractive opportunity.
He adds that Hyundai franchises are now more attractive as the brand has upped its U.S. market share and expanded its lineup with new and improved vehicles.
Hyundai Motor America's sales boss, Dave Zuchowski, says new owners represent a welcome trend for Hyundai. In most of the deals, larger, experienced dealers with lots of money are paying huge amounts to replace owners who are running underperforming stores. [via autonews - sub. required]