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Honda Korea, disputes with dealer and sales decline.

  • 기사입력 2013.10.07 09:12
  • 최종수정 2014.05.15 10:37
  • 기자명 신승영


[AutoDaily] The Honda Korea dealership in Bun-dang in Gyeonggi-do operated by Hugen has been in dispute with Honda Korea for 5 months now. Honda's sales keep decreasing so some of their models are discounted up to 7 million won and Honda is now selling their cars on the home shopping networks.
 
Honda Korea's sales have increased 37%(3,589 vehicles) up until August of this year compared to the same time last year. This contributes to 450 vehicles being sold every month which is still not high even though in 2012 sales weren't spectacular.
 
Honda Korea, sold 503 vehicles in April. But since the dispute with the Bun-dang dealership their sales have decreased with 370 sold in August and 320 in September.
 
To bring their sales back up to normal, Honda Korea has decided to sell the Crosstour and the Civic hatchback on some of the home shopping networks last month. They are selling the recent models that were just released in December 2012 and January 2013.
 
On 1st September, CJ Home shopping started to have reservations for customers to test drive the models and they said if you buy one of the models on the air they will get the car discounted. The Crosstour will have a 6.9 million won discount and the Civic hatchback will have a 5.9 million won discount.
 
The Crosstour and Civic hatchback are limited editions, but not all of them were sold. So this month they will be airing them again with a 7 million won discount price in the month of October.
 
- Crosstour : 60 months Interest-free installments and a 7 million won discount.
 (this year until August a total of 58 vehicles sold)
- Civic Hatchback : 60 months Interest-free installments, and a 5.6 million won discount.
 (this year until August total 46 vehicles sold)
 
In addition, the main model of honda the Accord 3.5 EX-L is on sale with a 2 million won discount. This is due in part to the new 2014 Accord that will supposedly be released this coming November.
 
The Accord 2.4 and the exclusive 2.4 EX-L models are out of stock and will not expect anymore sales, but the EX still has stock and is being discounted by up to 3 million won at the dealerships.
 
Some of the Honda dealerships are saying that Honda Korea isn't aggressive enough on their marketing strategies, so they are thinking about changing their Honda dealerships to other brands.
 
 
By Lee Sangwon.
(translate by Lee Jeonghwa)

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