We would like to continue to reinforce the position of AAA Auto

The CEO of AAA Auto Karolína Topolová answered question posed by the economic editing staff of ČIA. In the interview, we ask about sales and other plans.

You have been the CEO of AAA Auto since the second half of July. Which innovations would you like to implement?

First and foremost, I regard it as necessary to systematically and over the long-term analyse the most frequent errors sales staff make when presenting a vehicle to the customer. We are currently working on perfecting the concept of so-called mystery shopping, which is simulated purchase of a vehicle in our individual branches. Until now, we only used this method using in-house staff, but we are also considering cooperation with an external agency. The aim is to check on the sales staff at all of our branches. On the basis of specific results of analyses of the course of the sales process and communication between the salesman and the client, our internal training department prepares supplementary made-to-measure training for the sales staff. If we want customers to return to us, we have to be more open towards them and give them even more information about the used cars they are buying.

How would you like to achieve this?

It is necessary to explain to them in a sensitive manner that they are buying something used, which almost always requires some investment into maintenance or repairs after it has been purchased. If the customer has a problem with a car, which can happen with something used, we must react more flexibly, with greater empathy and explain the legislative context to the client in a comprehensible manner. This is to say that any possible misunderstandings most frequently consist in distinguishing between a defect and regular operational wear and tear. We currently sell about 1,100 cars a week. We register roughly 5% claims, of which we handle 80% to the satisfaction of both parties. This means that there are some 10 to 11 claims which we reject in line with the law. I would like to emphasise that whilst handling claims, we proceed strictly according to the law. The claims process is now undergoing review, the aim being to adopt measures which will ensure that the percentage of customers who are satisfied with handling of claims will increase even further and that the rejected ones will decrease. Establishment of relations with customers will certainly also be helped by introduction of an ombudsman into the system, who will soon begin to work in our company as a mediator for any possible disputes and who will strive to find an amicable solution.

Your company wants to sell 50 thousand cars this year and thus increase sales by 12%. How do you want to achieve this figure?

We are currently working intensively on improvement of internal processes, which is also reflected in better sales results. We are also trying to get ever closer to our customers, so this year we have already opened 3 branches in the Czech Republic and Slovakia, these being in Jihlava, Liberec and Nové Zámky. We will be opening at least one more in each country by the end of the year. Each new branch does of course also mean increase in stock and overall sales. Our offer in the Czech Republic now numbers 6 thousand cars. A growing share of cars purchased in instalments is also helping us to achieve higher sales, in terms of which we accommodate our customers and offer them the financial products of five renowned partners in the Czech Republic and three in Slovakia. We are also getting ready to launch a new concept on the market for sale of a specific and attractive segment of our cars, finalisation of which we are currently working on and information about which we will be making public sometime around the middle of September.

You said in the past that you wanted to introduce conversion of cars to LPG in Slovakia too. When do you estimate that this will happen? Will this service also for example be available in Russia?

Fuel prices in Slovakia are not currently rising so drastically anymore, to this is not a priority project for us at the moment. Nevertheless, we are planning to start implementing this next March. As far as Russia is concerned, the situation is different there and we have no detailed plans there with regards to this for the time being.

You say that you are registering increasing interest both in conversion of cars to LPG and also in general about used cars which have already been converted to LPG. How many of these cars do you currently have on offer? Do you plan to increase their number?

Customers really appreciate our offer of LPG cars. We are currently offering over one hundred cars powered like this, we are constantly increasing their number and will continue with to do so in the future.

You have set a recharging station into operation in your Prague branch in support of electric cars. How is this branch used? When do you estimate that another station in Brno and other locations could appear?

With a view to the low level of development of electric car use on a nationwide level to date, the recharging station is not being used very much for the time being. We currently view this project rather as an initial step towards bringing our vision to life, in terms of which over the next five years, we expect accelerated setting into operation of electric cars in terms of company fleets or in the public sector. We believe that this will be a very interesting segment on the used car market in the relatively near future. We would like to open a recharging station in Brno in the second half of October. Unfortunately things do not depend on us alone, but also on several permits which we are currently arranging. Over the next five years, we would then like to have a recharging station at all of our branches. This means that approximately 20 new electric car recharging stations will be appearing in the Czech Republic.

In the first half of this year, your company planned to launch a new online portal for insurance products offering third party liability and fully comprehensive insurance. How is the launch going?

We are currently working on finalisation of the project and are counting on its launch in the first quarter of 2013. It will be launched in terms of further development of the sales concept planned in the attractive segment which I spoke about earlier.

What overall development are the financial products offered undergoing? Do you register a growth or decline there?

The basic shift is towards an almost exclusive demand for loans, which have completely replaced leasing in the case of individuals. Financing of this type is currently provided in the Czech Republic for more than 50% of cars and more than 60% of cars in Slovakia. This trend is continuing to increase in both countries. Our “CZK 30,000 in hand” promotion met with great success among customers in the Czech Republic, this being the amount which we pay out in terms of our marketing campaign to customers who have purchased a car using a loan. This is a significant benefit for many people during the summer, in a situation when they are not left with much money, for example for a holiday, after having just bought a car.




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