Hyundai Forums banner
1 - 20 of 51 Posts

·
Registered
Joined
·
273 Posts
Discussion Starter · #1 · (Edited)
My local dealer has 12-15. I didn't bother to see what they were. SFS 2.4 or 2.0T, or SF.

I hope not. I see what the numbers look like sales wise for the month of September and report back.

My local dealer normally keeps his inventory low (Around 5 or 6 at most)
 

·
Registered
Joined
·
161 Posts
Our local Hyundai dealer is very small - and they never seem to have a lot of stock of any model of Hyundai - I don't even know how they can stay in business. Anyway, they have 2 SF LWB's and about 8 SF Sport's on the lot.
 

·
Registered
Joined
·
181 Posts
We'll have to see what September sales numbers are but I doubt they have fallen off much. I went Saturday with a friend that was looking to buy one and they lot was packed but they haven't dropped prices at all. My normal sales man wasn't there but the guy we were working with claims September is second only to August for the year. I didn't count but they had about 20 on the lot. Mostly FWD 2.4, cloth. Also the first time I've ever seen a truly base model on a lot (no preferred equipment package).

Typically if it was bad month, excess inventory, and at month end they would be willing to deal. That was not the case here.

When I was there a couple weeks ago picking my car up from being detailed they were unloading an entire truck load. Must have been a dozen Santa Fe's or more.

I think what we are seeing is Hyundai pushing out the 13's to get ready for the 14 switch. There is a very large Chevy dealer down the street from my house and they normally have 12 -15 Traverse on their lot and any given time. About a month before they started the model year end close outs they must of had 30+ on the lot, they were stacked 3 deep.

My theory is the manufactures give the dealers discounts to clear out the year ends. Dealers take then early to try and sell before the year end closeout at higher profit levels and then they just clear out the excess during the year end closeouts. This is supported by the fact that they lot was not only packed with them but they were packed with the less desirable models. eg. The ones they built too many of because demand did not meet expectations.
 

·
Registered
Joined
·
418 Posts
No significant discounts yet at my local dealership. They have only a couple of the Santa Fe LWB model and around 15 of the Sport model with varying equipment.
 

·
Registered
Joined
·
273 Posts
Discussion Starter · #9 · (Edited)
carline sept/2013 sept/2012 cy/2013 cy2012

Santa fe 6,639 7,378 62,744 50,961

Surprise of the numbers, but I'm hearing they are holding the price line.
2014 Santa Fe suppose to be rolling out this week to dealers
 

·
Registered
Joined
·
3,458 Posts
carline sept/2013 sept/2012 cy/2013 cy2012

Santa fe 6,639 7,378 62,744 50,961

Surprise of the numbers, but I'm hearing they are holding the price line.
2014 Santa Fe suppose to be rolling out this week to dealers
Best selling SUVs in North America:

GOOD CAR BAD CAR: Best Selling SUVs

Hyundai holds the 17th spot in ytd sales . The Subura Forester's nos are up in a big way this year so their redesign is seeing broad consumer acceptance.
 

·
Registered
Joined
·
378 Posts
Best selling SUVs in North America:

GOOD CAR BAD CAR: Best Selling SUVs

Hyundai holds the 17th spot in ytd sales . The Subura Forester's nos are up in a big way this year so their redesign is seeing broad consumer acceptance.
That would explain the inventory numbers. Our local dealer here also has a large number of SFS for this time of year. Really surprised at number of sales? No I am not! Hyundai has done a very poor job of marketing this new version when it comes to options, colors etc. To be ranked 17th out of 20 tells the story. The choices in this category are getting better and it is becoming very competitive. Also the price points are very aggressive and the competitors are not forcing you into options you do not want.

I really like my 2010 with the V6 and do not care for the four cyl. I will be visiting the showrooms of the top six and checking out their products. B)
 

·
Registered
Joined
·
3 Posts
While there may be a decent amount of 13 Santa Fe Sports left near me (Albany NY area), for the past 3 or 4 months they are mostly 2.4's,... or 2.0ts with leather but no tech.

It seems the 2.0t's with tech have been very hard to find for the last 4 months near me in any color other than black or white... I wonder if Hyundai would sell more if they made more of the loaded 2.0t's available...
 

·
Registered
Joined
·
105 Posts
While there may be a decent amount of 13 Santa Fe Sports left near me (Albany NY area), for the past 3 or 4 months they are mostly 2.4's,... or 2.0ts with leather but no tech.

It seems the 2.0t's with tech have been very hard to find for the last 4 months near me in any color other than black or white... I wonder if Hyundai would sell more if they made more of the loaded 2.0t's available...
2.0T with Tech is pretty much non-existent at the multiple dealerships in my area. The other versions have plenty of stock available though.
 

·
Registered
Joined
·
181 Posts
That would explain the inventory numbers. Our local dealer here also has a large number of SFS for this time of year. Really surprised at number of sales? No I am not! Hyundai has done a very poor job of marketing this new version when it comes to options, colors etc. To be ranked 17th out of 20 tells the story. The choices in this category are getting better and it is becoming very competitive. Also the price points are very aggressive and the competitors are not forcing you into options you do not want.

I really like my 2010 with the V6 and do not care for the four cyl. I will be visiting the showrooms of the top six and checking out their products. B)
Actually this chart shows the opposite.

Santa Fe is the third highest year to year gain on the list. They were not on the last in July, #20 in August, and #18 in September. Unit sold is down a little but just about everyone is. Due to the how they account numbers and Labor day, that whole weekend and the holiday was counted in August.

Every manufacture doesn't build the same number of these things. If Santa Fe's are stacking up on the lot due to poor sales then this trend would be going the other direction.

The chart trends seems to confirm the car is selling very well showing steady increases in sales. The more of the new body designs that get out there the more people that see it and the more people go out and buy them.

A 23% annualized gain in sales would be considered a huge marketing successes.

Cars are stacking up on the lot because they are changing the factory over to produce the 14's. Even though the car is largely the same for accounting reasons they are going to want to clear the 13' out of their finished goods and work in process inventory.

At the end of the year there are certain equipment and color combinations that underperform and are cleared out at model year in. Every manufacture works this way at year end.
 

·
Registered
Joined
·
3,458 Posts
Actually this chart shows the opposite.

A 23% annualized gain in sales would be considered a huge marketing successes.


The link below says the Sante Fe has enjoyed better sales years, so depends what your point of comparison is , yes 23% year over year gain is good but it appears that sales of the prior generation were on a decline since 2010 and in 2004 sales peaked at over 124k units in the US and Canadian markets. Even the poorly regarded Jeep Patriot posted a gain of 20% from 2012. The RAV4 is up 19.4% ytd and a lot of folks aren't impressed with the new model. And the CR-V while up only 7.4% sold 229k units ytd. There definately is a lot of competition and it's growing. Most makes are having good 2013 sales in the NA market.

Hyundai Santa Fe Sales Figures - GOOD CAR BAD CAR
 

·
Registered
Joined
·
181 Posts
Actually this chart shows the opposite.

A 23% annualized gain in sales would be considered a huge marketing successes.


The link below says the Sante Fe has enjoyed better sales years, so depends what your point of comparison is , yes 23% year over year gain is good but it appears that sales of the prior generation were on a decline since 2010 and in 2004 sales peaked at over 124k units in the US and Canadian markets. Even the poorly regarded Jeep Patriot posted a gain of 20% from 2012. The RAV4 is up 19.4% ytd and a lot of folks aren't impressed with the new model. And the CR-V while up only 7.4% sold 229k units ytd. There definately is a lot of competition and it's growing. Most makes are having good 2013 sales in the NA market.

Hyundai Santa Fe Sales Figures - GOOD CAR BAD CAR
I agree 100% but that not what this thread is about. The question raised here was are cars stacking up on the lot due to sales tanking. This data and your argument support the fact that the answer is no.

BY Hyundai standards the car is selling very well. The number of units they build is based on Hyundai standards not any other manufacture. They don't manufacture Santa Fe's based on the number of CR-V's sold. Heavy manufacture such as cars can not turn on a dime. They can make small changes such as with our without tech or colors quickly but fore the most part you manufacture based on forecast. The forecast is based on pervious year sales and predicted sales increases.

An increase in lot inventory in September for a car that's been out since August 2012 while showing month to month and annualized sales increases does not support the argument that the sudden inventory increase is due to poor sales. The report numbers support the more mundane argument that lot inventory is up because Hyundai is clearing out 13 inventory in prep for a model change over.
 

·
Registered
Joined
·
2,550 Posts
Heavy manufacture such as cars can not turn on a dime. They can make small changes such as with our without tech or colors quickly but for the most part you manufacture based on forecast. The forecast is based on pervious year sales and predicted sales increases.
Is that still the way they build cars in North America?

Europe has changed over to the Japanese JIT methods long ago - this allows build-to-order so that customers get the exact specification they want, from the options available.

Forecasts are used for new models and new options but rapidly replaced with data from actual customer orders.

Two decades ago, GM Europe cars could be ordered at the dealer in an exact combination of model and options and checked to see if matching cars exist anywhere unsold in the supply chain while you sit there - if a direct factory build is required it could be scheduled through the factory and shipping process and given a delivery date to dealer within 24 hours.
 

·
Registered
Joined
·
3,458 Posts
An increase in lot inventory in September for a car that's been out since August 2012 while showing month to month and annualized sales increases does not support the argument that the sudden inventory increase is due to poor sales. The report numbers support the more mundane argument that lot inventory is up because Hyundai is clearing out 13 inventory in prep for a model change over.[/QUOTE]

Yes I understand your point regards the above. I'd speculate that Hyundai enjoys pretty solid (above industry avg.) net margins on most of their vehicle lines - and if they want to move any inventory that might result from slower sales they will have no problem doing so offering incentives. Fire sales and price reductions can have an impact on future sales and Hyundai seems to have a good grasp on marketing, brand perception, value creation and all that. Some dealers in the Denver area do have pretty good inventories currently. And here I so see a lot more Grand Cherokees Subarus and Honda CR-V and Passports.
I was surprised at the listed 2004 Sante Fe sales numbers - looks like Hyundai may have waited a bit too long to read the market shift into CUVs and are maybe being conservative/wise with the capacity investment to get their sales volume back to prior years. Or they are ok with lesser volumes and maintaining higher margins per vehicle produced.
 

·
Registered
Joined
·
181 Posts
Europe has changed over to the Japanese JIT methods long ago - this allows build-to-order so that customers get the exact specification they want, from the options available.

Forecasts are used for new models and new options but rapidly replaced with data from actual customer orders.

Two decades ago, GM Europe cars could be ordered at the dealer in an exact combination of model and options and checked to see if matching cars exist anywhere unsold in the supply chain while you sit there - if a direct factory build is required it could be scheduled through the factory and shipping process and given a delivery date to dealer within 24 hours.
Build to order is expensive and slow. You can absolutely still go to a dealer and custom order a car with the option packages, color, and motor you want but you don't get any of the incentives if you do so. Give the shortage of popular combinations, and the lack of custom ordering, I would imagine 13' production pipeline has been closed at this point.

All inventory manufacturing is based on forecast. You can predict what sales should to be for next month but you can't be certain.

I'm sure they use JIT in the US (I don't know for sure) but that does not allow for instant turnaround. They can make small changes like color or option groups but that can't make whole sale changes. These are assembled in Georgia (US model). The motors, suspension, electronics, and various other parts are not made there. There is lead time in the manufacturing process. If their supply chain is delivering the parts to build 7500 cars that month, they ware building 7500 cars that month, they will not keep large inventories of sub assembly's. Over the long term they will adjust production number for feature based on how close they are selling to the forecast. For example they may say Q1 sales are less than predicted lets low Q3 production by 10%. What they can't do is say sales are soft on Tuesday lets build less cars on Thursday. I would be surprised if the supply lead time was low enough to even allow for a month to month change.

Again though, in the context of the original question month to month sales have been improving and they are 23% over last years volume. That is after years of decline. Could they have badly missed forecasted anticipated sales for the end of the model year and built far more at the very end than needed, sure. The reasonable explanation in my opinion is the end of September increases are due to model closeout and not a recent drop in sales. Increase in inventory for model closeouts is common for every manufacture. Hyundai has already announced the 2014 model. My guess we'll see the closeout sales starting in the new couple of weeks or so and the new 14's hitting the showroom in late October or early November.

Really this comes down to basic micro-economics. Demand is high when a car hits the market. So Hyundai is going to want a good supply of 14's built at product release. Storage space both at for finished good inventory and on dealers lots is fixed. It can't be expanded quickly and easily. So Hyundai wants to build as many 14's as possible, to do so they need to move any completed unordered 13's out. To do this they sell them to the dealers at a discount. That moves the inventory form Hyundai to the lot. That produces a new problem. Now the dealers are out of space and Hyundai can't sell them 14's because they go no where to put them. Solution, the model year end close out sale.

There are also accounting reasons why would want 13' manufacturing done before moving on to 14'.
 
1 - 20 of 51 Posts
Top