Customer JourneyReviews

The automotive industry has certainly been hit hard by the pandemic resulting in everchanging ways of how car shoppers are shopping. This calls for dealerships to implement effective digital retailing platforms to support the new customer of today. To identify what draws these shoppers to a dealer's website and how to keep them engaged, Dealer Marketing Magazine interviewed Lyamen Savy, Founder & CEO at 321 Ignition. She explains why it’s critical for dealers to optimize their websites and monitor their search/SEO strategy — not just today, but constantly. Dealer Marketing Magazine: How have you seen dealership websites change over the last 5 years and are there any important lessons that have been learned that dealers should be aware of going forward?  Lyamen: Dealership websites haven’t kept pace with websites in other industries for many years and that’s part of what inspired the idea for my company, 321 Ignition. As I was doing research on what was currently available to dealers from their website providers, I was shocked. There wasn’t a single mobile-first website provider even though the large majority of dealership website traffic is on mobile. The other thing I noticed was how the industry was very segmented with few companies offering integrations and no one discussing their partners. My previous experience at Microsoft helped me to really understand the power of partners. When I was developing our company, I knew we needed to be mobile-first, customer-first, and partner-powered from the start.  DMM: Creating a seamless customer experience is crucial with an increasing market of millennial car shoppers. How should a dealership set up a successful website? Lyamen: Research has found that 78% of car buyers start their shopping online and of those, more than 70% of people are using their smartphone to access the dealership website. Because of all that online shopping, consumers are visiting less than 3 dealerships on average. If people can’t visit your website, your chances to get them into your dealership are getting smaller.  When it comes to setting up a successful website, it needs to be mobile-first, not just mobile-responsive. A mobile-responsive website is designed for a large screen and is adapted to fit a smaller phone screen. The problem is that a design that works on a computer looks busy and overwhelming on a phone screen. A successful website won’t just work on any device, it has the correct user experience for the device the user is on. 321 Ignition websites are designed with mobile-first in mind and they look amazing on desktop, too.  DMM: How can dealerships use tech tools to create a high-functioning website and create a successful customer experience? Lyamen: A tech tool alone is just a widget. Dealerships invest in tech tools to help them solve business problems. However, if tech tools are not installed on a website using an API, then they won’t achieve the business objective and goal. The problem with a lot of website tech tools in the automotive industry is they are just widgets and iFrame codes vs API integrations. Widgets and iFrames create a poor user experience, they are disjointed single-point solutions vs a complete solution, they slow down the website, they hurt SEO, and most of them don’t match the rest of the dealership branding. At 321 Ignition, we invest in API integrations with any technology provider in the automotive industry to help dealers provide the best consumer experience and achieve the ultimate business outcome. DMM: What inspired the start of 321 Ignition and what is the core dealership problem your business is solving? Lyamen: One of my best friends used to work at a car dealership and she used to come to me for marketing advice all the time as a friend and trusted advisor since I’ve been doing marketing for 18+ years. One day she contacted me because her website provider, MotorWeb, was acquired by FusionZone. She wanted my help and opinion in evaluating them. As I started digging deeper, I discovered all automotive website providers were missing critical elements that I knew helped convert website visitors to leads. These were things we had tested at Microsoft and CapitalOne and I knew would work in the automotive industry, too. I also quickly realized that website providers were charging extra for services and solutions that should be table stakes — things like technical SEO or Google Analytics tracking. On top of all of that, other vendors were calling her every day trying to sell her website widgets that should have come standard with any website. I couldn’t believe what was going on in the industry and realized that it was a good opportunity to help small businesses and follow my passion for marketing. My company, 321 Ignition, is the only mobile-first website provider in the automotive industry designed to assist new and used car dealerships of any size in creating the best customer experience to serve the exploding online car shopping market. Using native mobile features and the best practices from Fortune 100 companies across a variety of industries, 321 Ignition offers a time-saving and frictionless online customer experience optimized for car shoppers on the go. DMM: Why are VDP visitors so important and does 321 Ignition leverage these visitors? Lyamen: The VDP is the moment of truth. The purpose of the SRP is to intrigue consumers about the cars available in stock. The purpose of VDP is to educate and close (aka ask for the sale). When a consumer lands on the VDP page, their sequence of thought is, “Do I want this car? Can I afford this car? How do I buy this car?” The goal of the VDP is to collect micro “yes’s” to all these questions along the way to get to the ultimate “Yes” which is the sales lead and car sale.  To get to the ultimate “yes,” you have to anticipate and overcome all sales objections and eliminate all elements that cause friction and anxiety. You have to be ruthless in prioritizing content based on hierarchy and sequence of thought, especially for shoppers on a mobile device. Imagine as the user is scrolling down the VDP, you’re anticipating their sales objections, overcoming them, and collecting micro “yes’s” along the way. DMM: How do your smart financing applications work? Lyamen: Credit app leads are probably the warmest and highest quality leads salespeople can receive because these are people who are ready to buy a car and they just want to know what they can get approved for. There are 2 parts to the credit app, the consumer experience and the internal staff at the dealership experience (BDC reps, F&I managers, etc.) For consumers, since we know that majority of them, over 70%, are filling out the credit app on a mobile device, with one finger, instead of a keyboard with two hands and ten fingers, it‘s all about having empathy for the consumer. It’s important to think about in that given moment, at that given time, what would be most helpful for the consumer filling out a long credit application with one finger. At 321 Ignition, we leverage mobile-native features to make it faster and easier to complete a long credit application on a mobile device. For example, this means that the keyboard automatically changes to a numeric keyboard when adding in numbers and our Google maps integration allows us to autocomplete addresses. We also use smart field technology which subtracts or adds fields to the form the user is filling out based on their answers. This saves the consumer time by skipping fields that are not relevant to them.  For internal staff at the dealership, they want 2 things — 1) to get more leads i.e. capture consumers' contact info that started but did not complete full credit app — and 2) to save time re-entering credit app information into credit soft pull and hard pull software. To address the first need, our credit app has a shopping cart abandonment feature to help. When a customer starts filling out the credit app, on step 1 we only ask for basic contact info (name, email, phone). When the customer clicks “next”, we wait for 25 minutes and if they didn’t complete the full credit app, we send a lead notification to the dealership’s CRM saying “John Doe started credit app, but did not complete” so that the salesperson can follow up and try to close them.  We also have an API integration with DealerCenter and 700 Credit and all credit app leads are automatically sent to DealerCenter, 700 Credit, DealerTrack, RouteOne, CUDL, and AppOne for F&I Manager to do credit pulls and submit applications to banks. We’re always looking for more credit and banking partners and can share our API documentation. DMM: So your company offering will help a dealer operate a successful and optimized website. What should a dealer focus on after that? Lyamen: Most dealerships we talk to think they have a website traffic problem when really they have a website conversion problem. Once dealers sign up for 321 Ignition mobile-first website, they can confidently invest in paid media and SEO content, and accurately measure ROI. These are some of the ways we’ve seen dealerships leverage their new website:  Google ads When we launch dealership websites, we set up their Google Analytics goal conversion tracking to only track real leads (i.e. online web form submissions, click-to-call, and click-to-drive) instead of page views and average time spent on site. This allows paid media managers and agencies to launch Google Ads with a “Target CPA” bid strategy that will use Google machine learnings to optimize campaigns that will generate maximum leads at the lowest cost per lead. Facebook & Instagram Shops Facebook Marketplace for Auto has been discontinued. Dealers now have an opportunity to advertise their inventory on Facebook and Instagram shops. 321 Ignition mobile-first websites have the microdata schema dealerships will need to get their inventory live in Facebook & Instagram shops. On-page SEO & blogging In-house marketing teams and agencies can save time from cleaning up schema markups, SEO title tags, and meta description, and instead, focus their time on producing fresh new content. Our WordPress backend has a ton of content blocks that help save time and create new pages without HTML knowledge. We also offer a mobile-first blog that helps increase organic ranking and convert organic visitors to leads using relevant HTML5 banners (no coding knowledge required to create them). DMM: Thank you for your time today! Is there anything else you’d like to share? Lyamen: As a company, we’ve been partner-powered from the beginning. We partner with other technology providers to help them provide complete solutions for dealers and we partner with agencies and consultants to help them increase value and achieve more in less time. We know we’re all better together and nobody can do it alone. If you’re looking for a true partner for your dealership or clients, we’d love for you to get in touch. For more information click here

Over the last decade we have seen so many changes in automotive marketing. The evolution of social media has changed the marketing landscape. With the changes over the last year in our industry, it is more important than ever to have your marketing processes and procedures in place. One area that has been of particular interest for me has been video, specifically short-form video, and watching dealerships utilize it to reach and convert their customers. There are dealerships across the country that are utilizing TikTok, Instagram, LinkedIn, and YouTube to reach new customers. There are some that do an incredible job of taking their social media presence to the next level and then there are others that are still trying to work out all the details to get their team(s) firing on all cylinders. Over the last few years, I have been watching a Ford Dealership based out of Dillsburg, PA, Bob Ruth Ford, take their social media presence to new heights. To say I am impressed with their marketing processes and procedures is an understatement. When I had the opportunity to speak with their Marketing Director, Stephanie Clark, a rising marketing star in the car business, you know I was going to ask her all about their philosophies on video marketing! Melanie: Stephanie, Tiktok vs Instagram Reels vs YouTube vs LinkedIn. How do you determine which video platform to use/share on? Stephanie: Determining which platform to use and what to share where is super important. To tailor our communication among the platforms we use our key of simple sentences. So, for example, Instagram is “Here is a photo of coffee,” Facebook “I like coffee,” TikTok “Here I am dancing with coffee,” LinkedIn “My skills include making coffee,” Youtube “Here I am drinking coffee.” So, making sure all of our content reflects across the platforms, it helps us to keep in proper communication with each client. We aren’t going to communicate with people on LinkedIn the same way we would on TikTok. Finding our audience on these platforms comes from determining who our ideal customer is and where they spend their time. It’s important to focus on the user and not the product. Showing them a brand-new Explorer is great but provoking an emotion will go so much further. My personal favorite is Facebook. We have worked hard to build credibility with our followers on that platform and we get a lot of engagement through it. We are completely transparent, putting out all information that customers could want or need, along with some fun and silliness incorporated along the way. This is my favorite because you can get so creative with it and reach SO many people, and it’s very trackable. We see a lot of success with customer testimonial videos. New customers seeing and hearing a current customer say, and confirm, what we preach as to who and what we are as a company, makes all the difference. We could say something a hundred times, but it has so much more meaning when it is coming directly from our customer, and them saying that this was their experience, and therefore it was so unforgettable. YouTube is our holy grail! Every video we make goes on YouTube. Our customers can find anything and everything that they need to know about our dealership there. We have different playlists pertaining to different categories – our VIP buying process, our VIP selling process, a day in the life at the dealership, how-to videos, and any current event sponsorship events we’re doing within the community. It can all be found here. Our channel creates brand awareness all while being entertaining. They can learn about us as a company or learn about any vehicle or service they’re interested in. With Instagram Reels, Millennials are the biggest users on Instagram and spend about half an hour a day scrolling. This is where we show “here is a photo/here is a video of coffee.” Users are scrolling fast and need their attention caught quickly and it’s only going to last a few seconds. Successful Reels capture attention within the first two seconds. The communication on Instagram Reels is tailored to millennials that want natural-looking content. We advertise here that “We are in business,” it’s up to date and tasteful. An aesthetically pleasing feed is what attracts people there. A huge part of the Reels is appropriate CTA’s (calls to action), there’s no point in putting something out without meaning to get some form of return. Utilizing Reels on Instagram is an in-between of fun and information. People aren’t necessarily coming to Instagram to buy a car – however, in our instance, they absolutely can – but to see what our company is up to, that ‘hey we are in business!’ and that we do keep up with our customers there. LinkedIn – This is our “my skills include making coffee” platform, which is an older demographic – baby boomers, gen x, millennials. We create business relationships here, show how and why we are ahead of the times within the industry, and keep our customers and followers up to date with what our processes are / what technology we are using / what vendors and business partners we work with / and how we operate overall as a business. We also post video content here – mostly informational content on us as a company and/or employment opportunities. Almost like a current event – what we’re up to in the business world / how we are impacting those around us. It’s a place where people can learn from us and vice versa. M: Do you find that customers are reaching out to you through TikTok? S: TikTok – this is our ‘fun’ platform. We show personalities around the dealership, but still incorporate hot vehicles and keep it branded to Bob Ruth Ford / automotive content. We can stay with the trends while also making it pertain to the industry and remain relevant. People go to TikTok for entertainment, so I think it’s a great place for customers to see us real and raw and that we are people just like them. There’s a younger generation on TikTok than, say, LinkedIn, that is right at that first-car-purchasing age, so keeping up with them and getting in front of them is crucial. This generation isn’t going to see us on LinkedIn or even Facebook anymore. Gen Z is scrolling TikTok more than they are Facebook. Our people have gotten more comfortable in front of camera and video because we utilize it so heavily, it’s just become part of everyone’s day at work from sales, to accounting, to management. They’re used to having cameras in front of them and we aren’t afraid to put ourselves out there, and it’s really benefitted us. Which I think is a huge part of this platform, you can’t be afraid to do something silly or outside of your comfort zone! M: What is one tip for choosing the right video sounds and content? S: Always go with what’s trending. Anything that’s trending can be aligned with the brand focus – granted it’s within appropriate guidelines, etc. You can take sounds and make them relevant to your brand and industry. It takes creativity and stepping outside the box, as well as your comfort zone. My team and I have embarrassed ourselves plenty of times, you just have to laugh along with those watching. The same goes for hashtags: we use our core list of hashtags that are part of our brand, as well as throwing in the trending hashtags. That gives it a good mix to reach new audiences and keeps our current hashtag followers in the loop with content. It’s also important to follow other hashtags relevant to your brand, which keeps you zoned in with what others are doing around you. Following those have helped us to see what “trending” is and how we can follow a trend but do it better and differently, staying on brand with us. I love Stephanie’s perspective on social media and hearing what works for Bob Ruth Ford that can be transferred to your dealership. The take-aways from Stephanie’s experience that I know will help leadership all over the country, is to know your audience per platform, know what kind of content to share on those platforms and get comfortable being on camera, and to incorporate marketing into the culture of the business. Are you utilizing video in your dealership’s marketing strategy?      

As Bob Hooey said, "if you are not taking care of your customers, your competitor will." With so many dealership options and value offerings a potential customer can turn to, the differentiator factor will ultimately be "The Customer Experience." This experience is not only up and till the transaction takes place but continues to be built on each customer engagement point for the lifetime of that vehicle. It is known that it is 5x easier to retain a customer than acquire a new one. Why not deliver on this lifetime CX opportunity by adding extra value to the post-purchase experience? Being tech-smart on how your dealership will deliver the benefits of added value and take care of the customer could give your dealership a competitive edge. Assurant Global Automotive has recently launched a mobile app that will help dealers and clients connect with their customers, deliver a more personalized car ownership experience, grow their revenue, and retain more loyal customers. The Dealer Marketing Magazine team had the opportunity to chat with Martin Jenns, Senior Vice President of Global Transformation at Assurant Global Automotive to see the new Pocket Geek Auto (PGA) app in action. What inspired Assurant Global Automotive to create Pocket Geek Auto (PGA)? We've always had deep conversations with our dealer partners and there was one consistent theme that stood out – increasing the value of core dealer products and services to consumers. There was an opportunity to help dealers grow consumer loyalty, improve the customer experience, and drive value for dealer offerings like maintenance, protection plans and service, and from that, Pocket Geek Auto was born. Pocket Geek Auto is part of the Pocket Geek family of products offered in Assurant's other core businesses like mobile and home, where we help consumers manage and protect their mobile device performance, content, and maintenance throughout its lifecycle. In the auto industry, the post-purchase lifecycle management of a customer is very manual, labor intensive, and fragmented. Pocket Geek Auto serves as a necessary relationship tool between the dealer and consumer that streamlines and improves the customer experience. Take banking for example. Do you remember the last time you physically visited your local branch? Likely not, as most financial institutions have created apps where you can easily manage your account and seamlessly deposit and transfer money through the click of a button. We've taken a similar approach with Pocket Geek Auto. Customer Experience in automotive has been a trending topic and focus for dealerships as they build new strategies post-pandemic. Your focus on the post-purchase experience is certainly interesting and is a crucial point to ensure your customer is retained for the long run. How does the overall objective for the Pocket Geek Auto app support this idea? It's all about creating a better post-purchase experience. For dealers, our objective is to help build customer loyalty, strengthen core offerings, and drive service revenue. We're also helping dealers become more transparent and direct in their engagement with customers to drive customer satisfaction. For consumers, we're focused on creating a personalized car ownership experience that extends beyond the vehicle purchase. We want to help dealers ensure that consumers have a hassle-free car care experience and can connect with their dealer efficiently today and down the road. Can you tell us a little about Pocket Geek Auto's key features? It is a mobile app designed to help keep dealers connected to their customers over the lifetime of the vehicle ownership. Through the app, dealers can communicate with their customers by sending maintenance reminders, safety recalls, deals, and price match offers, and other information. Pocket Geek Auto also offers a paperless feature called Digital Glovebox, which has the capability to store vehicle-related documents regarding ownership and vehicle coverage for multiple vehicles. Other key features of the app include on-demand technical support for in-car technology and we will be introducing a simplified claims process that allows customers to report a protection policy directly through the app. How can Pocket Geek Auto be accessed? Is it free for dealers and consumers? Anyone can download Pocket Geek Auto for free to their iOS or Android mobile device and connect it to their vehicle but there are enhanced benefits when a consumer downloads in conjunction with a Pocket Geek Auto dealer or partner. There is no cost to the consumer or the dealer. For our dealer and other distribution channel partners, it is a value-add product that can serve as the primary method of communication to the end consumer via a white labeled version specific to their business. Consumers will typically download the dealer white labeled app at the time of vehicle purchase while they are still in the dealership. Our dealers and partners will receive access to expert technical support for their customers, assistance with administrative details, and even customer insights and analysis straight through a convenient portal. Superior end-to-end customer experience is a major driving force in building brand loyalty, which is essential to retain customers for the possibility of repurchasing. Are there customized options available to complement your brand and business processes? What else makes Pocket Geek Auto unique to dealers? PGA's offering is unlike anything we have seen in the industry to date. The app's technology and open API pulls in over 20 integration points and complements OEM apps already in use with different dealer specific features. Dealers also have full control of branding, imagery, and offers digitally delivered to their consumers through the app, including reporting features that allow for real-time analysis of consumer interactions. Our clients continue to look to us for innovative ways to solve today's business problems and we will be continuously adding new features to the app based on the feedback we hear from dealers and their customers. We leveraged our learnings across the Pocket Geek family of apps, specifically Pocket Geek Mobile, to bring an enhanced experience for today's digitally driven consumer.

The COVID-19 crisis has accelerated preexisting digital retail trends in the auto industry, and focusing on creating a clear digital retailing & customer acquisition strategy is essential for success.  Gone are the days of every car buyer walking through your dealership's lot. Today, car buyers are making decisions faster and spending less time shopping around. A surge in online tools has helped auto dealerships access key data pertaining to the customer buyer journey, giving dealerships the edge to influence a potential car buyer before they make their final decision.  The Dealer Marketing Magazine team met with Amy Hughes, Sr. Director of Dealer Intelligence at Experian, to chat about how auto dealerships can prepare for success and how to leverage data for marketing success.  After the turbulent 2020 the automotive industry has endured, the industry remains fragile. As the pandemic's effects start to dwindle and recovery is in progress, how can auto dealers ensure they're prepared for 2021, no matter what comes? Within the last 12 years, the automotive industry has weathered two major downturns — first the Great Recession, then COVID-19. While the industry has remained resilient in both cases, we know dealers are looking for ways to continue to navigate the current recovery and better prepare for the future. The answer is data. Staying close to data can help dealers stay on top of rapidly changing trends and respond accordingly.  With more time and data, there is more opportunity for optimization and to outperform any human. With so many kinds of data available these days, what types of data can dealers use to anticipate changes in the dealer market better?  Many auto dealers look at vehicle registration trends, but we've found that those trends can be even more informative when you layer in economic data. This can help dealers identify patterns and be agile in their planning. To that end, we recently introduced Experian Automotive Market Insights, which is a free dashboard that features numerous data points designed to help dealers be more strategic in their decision making as the industry continues to move toward recovery.  For example, a rise in unemployment typically precedes a drop in registrations by one month, as seen in the March – April 2020 time frame. If dealers begin to see a rise in unemployment, they can take steps to mitigate or minimize that dip, through things like incentive packages, special offers, etc. You can also look at indicators such as consumer sentiment, gas prices, interest rates, and more.  Experian Automotive Insights Dashboard That is very useful from a strategic perspective. How should dealerships leverage data when it comes to implementing tactics?  Dealers should start by looking for new opportunities around their store. Usually, this means going beyond the data within a dealership's CRM database, which can open the door to new customer acquisition opportunities. For example, the new Experian Automotive Market Insights dashboard highlights how many consumers are coming into positive equity or coming off lease at the state level, which can help auto dealers and OEMs understand how much opportunity is within their state.  Besides data being a key component to new customer acquisition opportunities, what are other ways that data can help improve marketing efforts?  At the end of the day, it's vital to know who your customer is, and what their priorities are. Layering in additional data points beyond the high-level economic trends can help dealers achieve this. For instance, on a national level, a recent Experian study found that millennials and Gen Z are the only age groups seeing growth in vehicle registrations. Millennials and Gen Z consumers comprised 32.83% of new vehicle registrations in 2020. Equipped with that knowledge, dealers can then take a closer look at what and how these groups like to buy and let that inform marketing strategies. For instance, Gen Z is more likely to finance a vehicle than millennials. Dealers can then tailor messages to each group accordingly, which are more likely to resonate that typical mass-mailings.  While the examples I just gave are at the national level, we always suggest that dealers look at local versions of these metrics, so they can see the nuances in their surrounding area and plan accordingly.  If a dealership is interested in learning more about how to apply data to their own marketing strategies, what do you suggest?  Data is a powerful tool that will continue to drive the auto industry toward recovery, and we want to help dealers as much as we can. In addition to the data readily available on the Experian Automotive Market Insights dashboard, dealers can also request custom insights. These insights will help dealers understand how data can be applied on their local level to better uncover opportunities near their dealership. For more information, visit  Experian Automotive Market Insights . 

Sierra Toyota in Sierra Vista, AZ is a small market Toyota dealership, and the leadership team understands the value of providing an exceptional customer experience. They have invested in technology, training, and staff to support initiatives like digital retailing and vehicle pick-ups for service. One program they recently implemented is called Quickride, an app that organizes home deliveries, vehicle pick-ups, and shuttles.  As a start-up consultant, I serve on the advisory board for Quickride. During our normal check-in call, I asked to hear about some of their recent success stories from clients. I expected to hear about happy customers or the benefits of adding home delivery options to their services per usual, but they shared with me a story about Sierra Toyota that caught me by surprise.  Gabe Rendon is the Service Manager, and he manages the team responsible for managing customer pick-ups. He shared that feedback was overwhelmingly positive since implementing the home delivery service. Customers waiting for shuttles appreciated being informed about their shuttle and wait times over the previous system, and those who scheduled vehicle pick-ups appreciated the convenience and being informed about pick-up times without constant phone calls. This feedback fit in with what Sierra Toyota hoped to do with the new program, but no one on the Quickride or the Sierra Toyota teams anticipated this next comment.  The dealership received an unexpected visit from Brenda Charles, who said, “I can’t tell you how much I love this new service you’ve introduced. I have a stutter, so the app made it incredibly easy for me to schedule a service and vehicle pick-up. I’ve recommended you for a commendation for local businesses that take steps for disabled people.” In Gabe’s words, they added this because they wanted to increase customer satisfaction, but they never imagined it would have this kind of impact.  Gabe and his team were originally concerned that people wouldn’t embrace the technology or might abuse the service. However, the opposite has been true. Customers have embraced pick-ups when they have trouble leaving the house or need assistance. Most regular customers appreciate having the option available to them but use the service sparingly as they recognize it comes with additional overhead from the store.  The pick-up service also provided unexpected benefits for the service department. Service advisors can now write up vehicles during downtime because the customer isn’t waiting for service. The vehicle pick-up service also offers them a valuable closing tool for customers who might otherwise find a lengthy and expensive service too inconvenient to finish that day.  On October 8th, 2020, Gabe and Sierra Toyota owner K.C Han went to the City Council meeting, where Mayor Rick Mueller presented them with Sierra Vista’s “Vist-Ability” award for their actions in the community. As their customer mentioned during the ceremony, “This [app] to me has been priceless.” Disclosure: I am also an advisor for and an investor in Quickride. 

The COVID-19 pandemic has triggered the worst global economic downturn since the Great Depression in the 1930s. Posting the fiscal deficits larger than those during the 2008 global financial crisis, countries around the world have come up with a series of measures to stimulate the economy. The worst economic downturn is still underway. Some countries are fortunate enough to see relatively quicker recovery, but the COVID-19 pandemic is aggravating in many others, including the United States, Brazil, India, and Russia, further dragging down their economies. The International Monetary Fund has recently forecasted that the 2020 global economic growth rate would be minus 4.9% due to the pandemic. The Federal Reserve announced in July that while the U.S. industrial output increased for the previous two months, the production dropped by an annual rate of 42.6%, the largest quarterly rate decline since World War II. The automotive industry is also going through an unprecedented crisis. Vehicle manufacturers have suspended their factory operation, and dealerships are struggling with their business. Compounding the crisis is that their potential customers have lost their jobs and seen their income shrunk. IHS Markit has forecasted that 88 million cars would be sold this year worldwide, down by 12% from a year ago.  Global automotive companies have been looking for diverse measures to overcome the crisis, including budget cuts, fixed cost reduction, liquidity increase, to name a few. Considering the difficulties that both customers and dealers face, Hyundai Capital’s global entities have come up with various support programs in partnership with Hyundai, Kia and Genesis. And these programs have been well-received in the U.S., Canada, the United Kingdom, Germany, and Brazil. Hyundai Capital operates Hyundai Finance, Kia Finance and Genesis Finance in 11 countries worldwide. Hyundai Capital America, which runs Hyundai Motor Finance, Kia Motors Finance and Genesis Finance in the market, provided first payment deferral programs to 20,000 new retail customers who purchased a vehicle, allowing them to make their first payment 90 to 120 days later between March and May. The three months were when the U.S. was hit hardest by the COVID-19. The American operation also allowed 130,000 existing customers to defer a monthly retail or lease payment up to three times and extending their finance term, easing the financial pressure of more than 200,000 monthly payments. The measures turned out to be successful. Although the U.S. auto market has worsened in the wake of the COVID-19, Hyundai and Kia were able to achieve a combined market share of 8.9% as of June, continuing its winning streak in market share for 23 consecutive months. “Our top priority lies in better supporting customers and dealers according to each market’s conditions as we go through this unprecedented time,” said Paul Skiadas, who heads the Global Business Division at Hyundai Capital. Relief programs for customers suffering from COVID-19 Hyundai Capital entities in the U.S., Canada, and the UK offered payment deferral and waived programs to customers who can’t afford to make a payment due to the COVID-19 pandemic. In Canada, in which the automotive market was hit harder by the pandemic than in the neighboring U.S., Hyundai Capital Canada offered payment deferral programs up-to 180-days to customers who financed the purchase of a new vehicle through Hyundai Motor Finance and Genesis Finance. The company also offered a 6-months payment waiver to customers who financed or a 3-months payment waiver to customers who leased a new vehicle through Kia Motors Finance. Existing customers were offered to defer lease payment up-to one month, finance payment up-to three months. As a result of various customer support programs, “Hyundai Capital Canada was able to support strong sales for OEMs in June when the combined market share of Hyundai and Kia rose to 13.5% in June,” said Mark Di Donato, who heads Sales and Marketing Department at Hyundai Capital Canada. “We achieved the largest monthly sales volume of $200 million in July since the establishment of Hyundai Capital Canada,” he added. Hyundai Capital Bank Europe offered zero-interest loan and payment deferral programs in Germany. Hyundai Capital UK directly contacted customers whose agreements were due to end during lockdown to offer them a 3-month deferral or 12-month refinance of their balloon payment. The measures helped customers preserve future renewal opportunities. They also launched a 0% PCP product with 3-month deferred payments to help customers. All of this was heavily promoted and signposted via dedicated webpages. Banco Hyundai Capital Brasil also decided to extend the customer care program in August. New customers can make their first payment starting from 2021, and existing customers can defer their payment for up to 90 days. Liquidity support for dealers amid sluggish auto market The support from Hyundai Capital is not merely targeted at customers. Dealers also benefited from a chain of aids. Global operations came up with programs to improve cash flow of dealers struggling with financial difficulties amid the downturn of the automotive market. Hyundai Capital America was quick to deploy solutions that spanned their floor plan and commercial financing products in support of their dealer partners. As part of Dealer Cash Flow Assistance Programs, the operation provided 60-day deferral on floor plan interest payments and 60-day waived curtailments on aged units. Also, 90-day deferral on principal payments for existing working capital and real estate loans and 3-year fixed interest-only for new working capital loan applications were offered. Hyundai Capital Bank Europe provided payment deferral programs for 105 days to about 640 Hyundai and Kia dealers in Germany. Similarly, Hyundai Capital UK extended interest-free stocking periods and suspended payments for demonstrators for over 300 dealers on wholesale credit to ease the burden of the lockdown period when they were unable to sell cars. Banco Hyundai Capital Brasil has extended the period for its floor plan payment from 120 days to 210 days. “We are committed to helping dealers stay financially healthy with the dealer fund, raised together with Hyundai Motor Brasil and its dealers,” said Banco Hyundai Capital Brasil CEO Cezar Janikian.