Kia Signs ADP to Boost Dealers' Service Business
19 October 1999
Kia Signs ADP to Boost Dealers' Service Business; ADP's Creative Solution Nets 3-Year Contract
HOFFMAN ESTATES, Ill.--Oct. 18, 1999--The Dealer Services Group of Automatic Data Processing, Inc., a leading provider of integrated business solutions, announced that it has entered into a three-year fixed operations contract with Kia Motors, Irvine, California, that includes service reminders, parts and service pricing guides, and data warehousing services. Lloyd Law, Manager of Fixed Operations Marketing and Training for Kia, said that ADP was selected for Kia's first fixed operations program because the firm offers an unusually comprehensive approach that leverages Kia's owners database to provide a more comprehensive program that goes far beyond traditional direct mailing campaigns."We looked at the all the major players in this market and selected ADP because they offer a more creative solution to the issues faced by our dealers automotive service departments," Law said. "ADP's approach is not simply to mail out reminders but rather to assemble a database of Kia owners that will be continuously mined for a wide range of different programs. We feel that these programs will be so useful to our dealers that we are going to pay for the great majority of their cost. We expect that at least 500 out of our total of 565 dealerships will enroll in the program."
Kia is bundling the two ADP programs with two other fixed operations programs and providing them to dealers at a very low cost. While most manufacturers ask dealers to pay between 50% and 100% of the cost of fixed operations programs, Kia will pay for the database setup fee, the monthly database maintenance charge and the first 100 reminders mailed each month for each dealer. To better capture the unique spirit of Kia, the company will use postcards instead of the traditional reminder letters. The postcards will offer a fresh and look and feel and make it possible to tie the reminders directly into Kia's current Yes to Kia (Y2K) advertising campaign. The use of postcards will also make it possible to change reminder content quickly.
Kia Motors America is the U.S. sales, marketing and service arm of Kia Motors Corp. in Seoul, South Korea. February 1994 marked Kia's official entry into the U.S. auto market, as the company began selling its compact sedan, the Sephia, at four dealerships in Portland, Ore. Kia currently offers three vehicles: the Sephia compact sedan, the Sportage sport-utility vehicle, and the Sportage 2-door convertible. Today, Kia has 565 dealerships in 49 states. Yearly sales for 1997 totaled 55,325 vehicles. Kia sold 82,893 vehicles in 1998, a 50 percent increase from 1997 sales. Kia turned in its best sales month in history by selling 13,593 vehicles in June 1999.
ADP Dealer Services Group provides turnkey systems to more than 18,000 auto and truck dealers throughout the United States, Canada, Europe, Asia and Latin America. ADP Dealer Services Group is the third largest business unit of Automatic Data Processing, Inc. ADP, with over $5 billion in annual revenues and more than 450,000 clients, is one of the largest independent computing services firms in the world. More information about ADP and ADP Dealer Services Group is available via the Internet at www.adp.com or by calling 847-397-1700.
ADP is a registered trademark of ADP of North America, Inc.