HYUNDAI LAUNCHES CAMPAIGN TO EDUCATE AMERICANS ON THE DANGER OF COUNTERFEIT AUTO PARTS

February 10, 2016 by Hyundai

• Integrated Advertising, Public Relations Campaign Focuses on Safety

FOUNTAIN VALLEY, Calif., Feb. 10, 2016 – Hyundai launched a dramatic new awareness campaign today, aimed at warning American drivers of the risks involved when using counterfeit automotive parts.

Testing of a Non-OEM airbag vs. a Hyundai Genuine airbag

The National Highway Traffic Safety Administration (NHTSA) recommends that vehicle owners work with their automotive dealers and repair professionals to ensure appropriate original equipment parts are used in the event they need a new airbag.

Hyundai is tackling the issue of counterfeit, aftermarket, salvaged and recycled auto parts through a consumer awareness campaign, highlighting the differences between non-Hyundai and Hyundai Genuine Parts. The integrated media, advertising and public relations campaign will focus on safety and resale value. Hyundai is launching a series of videos, which can be found on the Hyundai USA's YouTube channel or at HyundaiUSA.com/ConsumerAwareness. The first video in the series is titled 'Don't Gamble with Counterfeit Parts.' The videos and dealership displays with examples of original and fake parts will help consumers see the differences first hand. In addition, Hyundai will be communicating the consumer awareness campaign via e-mail to its current owners.

Testing of a Non-OEM airbag vs. a Hyundai Genuine airbag

'Counterfeit Hyundai parts have been a growing problem over the last 30 years,' said Frank Ferrara, executive vice president, customer satisfaction, Hyundai Motor America. 'Customers would see short-term savings after their vehicle was repaired, not even aware that non-Hyundai parts were used to bring these repair costs down. Short-term savings can have adverse long-term implications on the vehicle and passengers, which ultimately ends up costing more. Consumer awareness is essential to addressing this issue and Hyundai is willing to do its part. The more people who understand the dangers behind using non-Hyundai components and see the benefits of purchasing original parts, the less likely they are to suffer severe consequences and lose value on their car. Safety and trust are paramount to our brand, which is why we are launching this campaign to encourage everyone to purchase original parts, every time.'

This campaign is the third program Hyundai has implemented to support its dealerships, strengthen relationships with collision repair centers and ensure the safety of Hyundai owners. The Hyundai Go Genuine Collision Conquest and Hyundai Recognized Collision Repair Center programs encourage repair facilities to use Hyundai Genuine Parts to make sure Hyundai vehicles are repaired properly and safely back to manufacturer specifications.

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Due to perceived high costs, motorists sometimes choose, or are told by their insurance company, to visit independent repair shops that are not recognized by the automakers for collision repairs. Some of these shops offer copies of original parts or recycled components from existing collision-damaged vehicles at a lower cost. Often these parts are unsafe for long-term use and pose a great danger to safety. Counterfeit and recycled crash parts also affect the vehicle's appearance and decrease its resale value. Hyundai encourages the use of OEM (Original Equipment Manufacturer) parts on all Hyundai vehicle repairs because they are designed and manufactured to meet Hyundai's engineering specifications. Hyundai does not recommend the use, or re-use, of components removed or recycled from an existing collision-damaged vehicle. Owners need to be aware, it can be hard finding out if their repair facility is using non-original equipment parts or parts that have been damaged due to a prior collision or element exposure.

Hyundai Genuine Parts are manufactured to exact engineering specifications for a precise fit without modifications, ensuring quick and proper installation. They are also tested to ensure they meet the U.S. government's collision safety and crash protection standards. Hyundai parts have high reliability because they are made from high-quality materials.

Use of imitation, aftermarket, alternative or other non-original equipment Hyundai parts may negatively affect vehicle crashworthiness and occupant safety during a collision, and is not recommended by Hyundai.

Financial Impact

The U.S. Federal Trade Commission (FTC) estimates that counterfeit automobile parts cost the global automotive parts industry $12 billion in lost sales a year, including $3 billion in the U.S. alone. The FTC also estimates that the U.S. auto parts industry lost sales to counterfeit parts correlates to approximately 200,000 - 250,000 fewer manufacturing jobs.

Hyundai Recognized Collision Repair Center Program

The Hyundai Recognized Collision Repair program ensures both independent and Hyundai dealership-owned collision repair centers have the training, tools, equipment and facilities needed to properly repair Hyundai vehicles after they have been involved in a collision.

Customers can look for the Hyundai Recognized Collision Repair Center plaque at their local collision repair center to know if their Hyundai will be repaired properly and safely to manufacturer specifications. The program will allow Hyundai to refer its owners in need of collision repair to a recognized center.

Hyundai has teamed up with Assured Performance Network on this program. Assured Performance Network is a non-profit consumer advocacy organization that will guarantee both Hyundai dealership-owned and independent collision repair centers meet the program's specified capability requirements, and pass an annual onsite audit and inspection. Assured Performance Network will also manage enrollment, online support systems, proof of compliance documentation and marketing. Collision repair centers can call 949.221.0010 or visit www.GetHyundaiRecognized.com for more information.

Hyundai Go Genuine Collision Conquest Program

The Hyundai Go Genuine Collision Conquest program provides reimbursement to Hyundai dealers, allowing them to competitively price their Hyundai Genuine Parts against alternative, non-Hyundai parts. Competitive prices help collision repair facilities purchase more Hyundai Genuine Parts as opposed to alternative, non-Hyundai parts. Using Hyundai Genuine replacement parts during the collision repair process provides confidence that the parts will perform as designed and engineered by Hyundai. The program is launching with five commonly required collision parts, including hoods, fenders, bumper covers, head lamps and tail lamps. These parts and the reimbursement associated with them are available for all Hyundai vehicles, regardless of age, for all participating dealers. Additional parts may be added to the program at a later date. The program is open to all Hyundai dealers.

HYUNDAI MOTOR AMERICA

Hyundai Motor America, headquartered in Fountain Valley, Calif., is a subsidiary of Hyundai Motor Co. of Korea. Hyundai vehicles are distributed throughout the United States by Hyundai Motor America and are sold and serviced through more than 830 dealerships nationwide. All Hyundai vehicles sold in the U.S. are covered by the Hyundai Assurance program, which includes the 5-year/60,000-mile fully transferable new vehicle limited warranty, Hyundai's 10-year/100,000-mile powertrain limited warranty and five years of complimentary Roadside Assistance. Hyundai Blue Link Connected Care provides owners of Hyundai models equipped with the Blue Link telematics system with proactive safety and car care services complimentary for one year with enrollment. These services include Automatic Collision Notification, Enhanced Roadside Assistance, Vehicle Diagnostic Alert, Monthly Vehicle Health Report and In-Vehicle Service Scheduling.