Plan for Genesis retail sales

[YEH]

Hyundai USA has pared down the # of dealerships that can sell the G90 (to less than 350, down from about 415 that had sold the Equus).

All Hyundai dealerships will be able to continue to see the G80 until the next gen model - which will then be restricted to the 300 or so dealerships that have passed muster to be Genesis dealerships.

Plan is to have separate Genesis dealerships in the major markets about the time when the full lineup has been launched (so 2021 or so thereabouts).

For the mid-size markets - a dual Hyundai/Genesis dealership model.

For small markets - showroom within a showroom.

Here's the plan laid out in a Wards Auto article.

Genesis Stand-Alone Dealers Likely in Five Years
Aug 18, 2016 Christie Schweinsberg | WardsAuto

VANCOUVER, BC, Canada – Hyundai targets 2021 as the date its new Genesis luxury brand will require stand-alone stores in the U.S.

However, the parent company is not forcing the issue, says a top Hyundai official, hoping the need for separate showrooms is dictated “organically” by a growing lineup and increasing sales.

“What we told dealers is, we’re coming out with six new Genesises over the next five years and oh, by the way, we’re coming out with 15 new or significantly redesigned Hyundais over the same period,” Hyundai Motor America CEO Dave Zuchowski says here during a ’17 Genesis G90 media preview.

“(We said), ‘You’re not going to have enough room. You’re going to need to take this vehicle and separate and get incremental volume out of it...and we want you to come to us and tell us how to do that.’”

However, Zuchowski sees stand-alone retail outlets necessary only in major metropolitan areas with a healthy pace of premium-vehicle sales. He rattles off Miami, New York and Chicago as likely locales for such ventures.

Dealers in midsize luxury markets will have separated showrooms with different entrances for Genesis and Hyundai customers, although service departments may be shared.

In smaller U.S. new-vehicle markets, a showroom-within-a-showroom setup likely will remain.

The latter setup is the way U.S. Hyundai dealers had been selling the Hyundai Equus large sedan, which the G90 replaces.

Hyundai has whittled down the roughly 415 of its 835 stores that had been selling the Equus, to less than 350 now for the arrival of the G90, focusing on markets with higher luxury-sales penetration.

http://wardsauto.com/dealer/genesis-stand-alone-dealers-likely-five-years

 

[Sal Collaziano]

I think this will work fine. The big markets get the most attention first and then they can work their way down to the smaller markets. It's a good way to keep costs down so that the product pricing doesn't get out of hand...

 

[MrB0462]

Paring down the number of Equus dealerships resolves only part of the problem. What still remains is that Hyundai dealers are some of the worst at customer service in the industry. I have tried 3 in my home area over several years and each sucks compared to other near luxury or luxury brands.

Also corporate is extremely unhelpful in resolving issues. I wonder when this CEO gets replaced.

 

[Nikgen]

Paring down the number of Equus dealerships resolves only part of the problem. What still remains is that Hyundai dealers are some of the worst at customer service in the industry. I have tried 3 in my home area over several years and each sucks compared to other near luxury or luxury brands.

Also corporate is extremely unhelpful in resolving issues. I wonder when this CEO gets replaced.

The dealers generally do suck - but I have found HMA and Dave Zuchowski to be very responsive and fair.

 

[YEH]

Unfortunately, Hyundai dealerships are uneven in their customer service (some good, some OK, some stink).

Should continue to improve as large, multi-dealer groups have been snapping up Hyundai dealerships.

Some of the new dealerships are quite nice; near-luxury in their appearance and amenities.

 

[Sal Collaziano]

We have a pretty nice showroom here in Palm Beach County, Florida...

 

[MrB0462]

We have a pretty nice showroom here in Palm Beach County, Florida...

The issue is not nice looking showrooms all the dealerships in my area look nice. It's how they treat customers and what amenities are offered. I also agree as large chains take over existing dealerships things should improve.

Yes I do expect to be treated somewhat differently as an Equus owner as opposed to someone who buys the least expensive Hyundai. That's the same issue with servicing my Corvette at a Chevy dealer. I am ignored and car is left outside on the street after servicing.

In North and Central New Jersey competitively priced brands offer amenities including upscale waiting areas free food (not snacks from a machine), complementary beverages, use of computers, magazines and newspapers that are current not months old.

Maybe the Genesis only showrooms will have these amenities which higher end dealerships routinely offer.

 

[Sal Collaziano]

I'm sure Genesis Motors dealerships will have all the same stuff the top tier stores do. It would only make sense...

The issue is not nice looking showrooms all the dealerships in my area look nice. It's how they treat customers and what amenities are offered. I also agree as large chains take over existing dealerships things should improve.

Yes I do expect to be treated somewhat differently as an Equus owner as opposed to someone who buys the least expensive Hyundai. That's the same issue with servicing my Corvette at a Chevy dealer. I am ignored and car is left outside on the street after servicing.

In North and Central New Jersey competitively priced brands offer amenities including upscale waiting areas free food (not snacks from a machine), complementary beverages, use of computers, magazines and newspapers that are current not months old.

Maybe the Genesis only showrooms will have these amenities which higher end dealerships routinely offer.