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AS CONSUMERS become more savvy about purchasing via the Web, distributors of expensive products, such as cars or other durable goods, are scrambling to understand how to avoid being cut out by the Internet channel.
Manufacturer Hyundai Motor America is taking the unusual step of answering that question for its dealers.
Rather than threatening to disenfranchise its business partners by selling directly to consumers on the Internet, Hyundai this week in Detroit will unveil an extranet application designed to boost dealership business. The application lets dealers fulfill orders and set prices for Hyundai parts and accessories from consumers or repair shops.
"Instead of using the Internet to cut out dealers, we've enhanced our relationship" says Bernard Reyes, senior technical analyst at Hyundai, in Fountain Valley, Calif. "We have to keep dealers in the loop because they're our link to consumers."
There were other business reasons for Hyundai's pro-dealer stance, not the least of which was a reputation that the quality of Hyundai's cars and parts were not up to snuff and the fact that many dealers sell Hyundais alongside other cars.
"We...