Hyundai Motor Company has announced it will take over wholesale distributors in Germany and France, Europe’s largest markets, which account for 41 percent of Hyundai sales on the entire continent.
The Korean carmaker will buy dealerships in Germany and France from Switzerland-based Emil Frey, as part of its strategy to boost sales in Europe. Hyundai will buy a 70 percent stake in a German dealership company from Emil Frey, the second-largest dealer group in Europe.
The carmaker already had 30 percent in the company, so its shareholding will reach 100 percent. Based on the acquisition, a Hyundai sales corporation will be established in Germany. Hyundai reported sales of 61,378 units in Germany in the first 10 months of 2011, up 29 percent year-to-date.
The Korean automaker also plans to gain control of a French dealer company from Emil Frey to set up a sales corporation in France. Hyundai sales in France reached 19,000 units in the first 10 months of 2011, up 12 percent from the same period last year.
Hyundai already has sales corporations in six countries: United Kingdom, Italy, Spain, Czech Republic and Poland. “With the establishment of sales corporations via takeover of dealers in Germany and France, we believe out competitiveness will strengthen in the European market,” a Hyundai spokesman said. The carmaker has a market share of 2.9 percent in Europe in the first 10 months of the year, up 0.4 percent year-to-date.