Hyundai changes its mind on Genesis dealers -- again

[Mark_888]

If you read the second link above, it says the following:

"In order to be a Genesis dealer stores would have to sign a new franchise agreement, though the details of that would depend on state regulations, and the location would have to have separate sales and service facilities for Genesis customers."​

That is hardly going to be "every Hyundai dealer." One dealer estimated it would cost him $10 million to build a new Genesis dealership.

Also, the article fails to grasp that it was not a marketing decision, but a legal one. There are apparently state laws in most states regarding the percent of existing franchise owners that have to agree to such proposals (cutting the number of dealers to 100). So Hyundai had to get a large percentage of dealer approval (I forgot the exact percentage) in order to restrict the number of dealers going forward, and they were apparently unable to get the necessary number of approvals, even when compensating some dealers with multi-million dollar cash compensation if they were not in the list 100 dealers.

 

[jsmit86]

This seems like bad news. Every Hyundai dealer gets to sell the Genesis brand (with some qualifications). Seems like a step back to the era of the Hyundai Genesis. A value dropping change, when one looks at how Lexus, Acura, Infinity, Cadillac Etc. are sold. Will the extra Genesis delears pick up the Valet Service, if they are closer to the buyer, regardless of point of purchase etc. Comments?

Genesis changes its mind on retail network -- again

https://jalopnik.com/hyundai-will-no-longer-restrict-genesis-sales-through-s-1825721003

Actually, I think this will be good news. Under the recently dropped plan, most dealers would lose the rights to sell or service Genesis.

Using the Chicago area as an example, we likely would have been reduced to 3 to 4 Genesis dealers in the entire Chicago area. So... I may have to drive 25-30 miles.

Under the new plan, Genesis dealers will still have to meet standards, and provide separate sales and service facilities within a set period of time. Due to this substantial expense, some, and perhaps many Hyundai dealers will not sign up. IMHO, this will weed out most of the weak sisters.
The good news is that for the Dealers who are doing a good job now, they will be able to continue with Genesis providing they meet the standards.

 

[PMCErnie]

Hyundai/Genesis needs to recognize that a dual dealer should be able to service vehicles in a combined facility, so long as standards are maintained. It makes no sense to stampede new Genesis dealers who have showrooms into also having 100% Genesis-dedicated service shops. Again, I'm predicting that they will see the light on this.

 

[GV70GUY]

Personally I still find the wording and what will actually fall out over the next year very confusing......

 

[Sal Collaziano]

I think the future of Genesis is going to be just fine. The G70 is going to spark a lot of interest in the brand. The CUVs are going to bring plenty of buyers as that's just what people want to buy today. A lot of people are waiting for a CUV with those winged genesis badges on it. If Hyundai can get their act together as far as customer service goes - everything will be okay. But they absolutely must avoid having people who don't know how to treat others with respect handle Genesis customers...

 

[Mcc]

But they absolutely must avoid having people who don't know how to treat others with respect handle Genesis customers...

Yes I agree and I also think PmcErnie is correct in saying “Basically, every employee needs to learn, or at least know about, the ways to pamper customers and to provide exceptional service. After the training is completed, those who cannot muster the necessary skills are removed.”

However I wonder how much clout corporate will have in removing those that don’t live up to expectations. Dealers don’t seem to be exactly like employees. We have already seen how powerful the dealers are. Any attempts to disenfranchise them would undoubtably be met with resistance and likely litigation which could result in a long drawn out process while the Genesis reputation continues to be damaged. I am sure other bands have this problem but the difference here is that Genesis is starting with a lot more dealers with a very wide variety of sales and service skills.

We can hope but I am not sure how Genesis should make sure.

 

[Sal Collaziano]

Yes I agree and I also think PmcErnie is correct in saying “Basically, every employee needs to learn, or at least know about, the ways to pamper customers and to provide exceptional service. After the training is completed, those who cannot muster the necessary skills are removed.”

However I wonder how much clout corporate will have in removing those that don’t live up to expectations. Dealers don’t seem to be exactly like employees. We have already seen how powerful the dealers are. Any attempts to disenfranchise them would undoubtably be met with resistance and likely litigation which could result in a long drawn out process while the Genesis reputation continues to be damaged. I am sure other bands have this problem but the difference here is that Genesis is starting with a lot more dealers with a very wide variety of sales and service skills.

We can hope but I am not sure how Genesis should make sure.

Maybe Genesis Motors corporate can hold back certain incentives if employee grades aren't high enough.

 

[Spanky61]

Old boss same as the new boss *sigh*

 

[pmcjr]

My concern right now and in the next few years, is the convenience of service for my G80. I'm not expecting to purchase another G80 any time soon. When that time comes, I would be willing to go to a "Genesis" dealer to buy one if necessary, but I like the convenience of the Hyundai dealer I bought my G80 from for service. Plus, I am very satisfied with them. I don't need valet service or fancy perks while my car is being serviced. I hope this relationship doesn't get messed up. I just don't believe Hyundai will be forced not to service the cars they sold.

 

[EdP]

Hyundai/Genesis needs to recognize that a dual dealer should be able to service vehicles in a combined facility, so long as standards are maintained. It makes no sense to stampede new Genesis dealers who have showrooms into also having 100% Genesis-dedicated service shops. Again, I'm predicting that they will see the light on this.

I don't care if it is serviced at the corner gas station or in an igloo, if they have:
Trained tech
Genuine parts
Any special tools needed.

Agree is is silly to build a special shop for the brand when you have one that is already well equipped.

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[Mcc]

I don't care if it is serviced at the corner gas station or in an igloo, if they have:
Trained tech
Genuine parts
Any special tools needed.

Agree is is silly to build a special shop for the brand when you have one that is already well equipped.

Ya but what are the odds that someone who works in an igloo is going to have trained techs?
There will always be exceptions that can provide superior service but I think I think they need to look at what will give the best odds of doing so. Yes I also know the cost of doing so (not just in dollars) has to be factored in also.

 

[JohnLaFoote]

I would agree with PMCJR, as I am within 15 miles of a good Hyundai dealership with a great service dept.! In addition, understand that close to 2/3 of the vehicles being sold today are SUVs and trucks, leaving a much smaller margin of potential customers that may be interested in sedans, and even a smaller group interested in luxury sedans like the Genesis. So Genesis is trying to keep as many possible options open in order to grow sales for this relatively new Genesis brand.

 

[lt2211]

Mark_888-said..

"""That is hardly going to be "every Hyundai dealer." One dealer estimated it would cost him $10 million to build a new Genesis dealership"""

Agreed, the thread title is a bit misleading, it should have read Genesis to be offered to all Hyundai dealers, although I indicated in the post body qualifications were involved. All that aside, I think we will see more Genesis dealers under this plan than the old one, which involved a limited number of Genesis dealers in large metro areas. Will the increased number of dealers, leave enough profit to spread around, is the question, especially as manufacturers, IE Ford, seem to be stepping away from the traditional sedan, in favor of sport utility vehicles, vans and trucks, will this become a trend?

 

[Mark_888]

... the question, especially as manufacturers, IE Ford, seem to be stepping away from the traditional sedan, in favor of sport utility vehicles, vans and trucks, will this become a trend?

It's already the trend. 67% of Acuras are SUVs (just two models, the MDX and RDX), and more than 50% for Lexus.

The new Bentley SUV is now their fastest selling model. Every luxury manufacturer, including Rolls Royce, Lambo, Ferrari, etc, either has an SUV now, or has announced one and will be selling it by end of next year (most by end of this year).

 

[PMCErnie]

It's the best possible news since there are virtually no stand-alone Genesis dealers in the USA. NO SALES = NO PROFITS.

Didn't most of us know that the "100 Dealer" plan was doomed from inception? Of course we did!

 

[JohnLaFoote]

There are a few standalone Genesis dealers in Northern VA, near where I live (within 30 miles). It also seems that more Hyundai dealers have Genesis sedans in stock, especially if you like Black or white cars.

 

[PMCErnie]

There are a few standalone Genesis dealers in Northern VA, near where I live (within 30 miles). It also seems that more Hyundai dealers have Genesis sedans in stock, especially if you like Black or white cars.

I said virtually no dealers. Have you seen them for yourself? Those that are in existence certainly aren't making their presence known here. Oh, there are those two Canadian boutiques in Toronto and Mississauga. They don't have private Genesis service shops. Fine with me.

My Hyundai dealer is shown on the Genesis website, but it's not a standalone dealer. In other words, don't believe what you read on the Genesis website. I like my dealer but they sell and service both marques.

 

[Windchaser]

Rosen Hyundai in Algonquin, IL (Chicago metro area) actually has a separate building/showroom for the Genesis cars. They have had since the Equus first hit the scene. The service area is shared between the Hyundai and Genesis but the showrooms are separate. The Genesis showroom is definitely more upscale.

The also have a dedicated Genesis service person who handles all Genesis issues. They are definitely trying to make a distinction between the Hyundai and Genesis owners.

 

[Mark_888]

Rosen Hyundai in Algonquin, IL (Chicago metro area) actually has a separate building/showroom for the Genesis cars. They have had since the Equus first hit the scene. The service area is shared between the Hyundai and Genesis but the showrooms are separate. The Genesis showroom is definitely more upscale.

The also have a dedicated Genesis service person who handles all Genesis issues. They are definitely trying to make a distinction between the Hyundai and Genesis owners.

Not good enough going forward, according to what I have read. Although the number of Genesis dealerships is no longer limited to 100, those who want to be a Genesis dealer have to agree to build a completely separate facility for sales and service by a certain deadline (2-3 from now). Those who agree to build such a separate dealership may continue to sell the Genesis at their current Hyundai dealership location for the time being until their new facility is up and running. This apparently applies to the 2019 model year and beyond (existing Hyundai dealers can still sell their 2018 models).

This is my understanding based on various press reports, but there has been some confusion about this whole matter, so what I posted above may not be 100% correct.

 

[Windchaser]

Not good enough going forward, according to what I have read. Although the number of Genesis dealerships is no longer limited to 100, those who want to be a Genesis dealer have to agree to build a completely separate facility for sales and service by a certain deadline (2-3 from now). Those who agree to build such a separate dealership may continue to sell the Genesis at their current Hyundai dealership location for the time being until their new facility is up and running. This apparently applies to the 2019 model year and beyond (existing Hyundai dealers can still sell their 2018 models).

This is my understanding based on various press reports, but there has been some confusion about this whole matter, so what I posted above may not be 100% correct.

Did I say this would meet the requirements for dealerships going forward? At this point in time no one knows exactly what those requirements will be.

Someone posted that there are virtually no separate Genesis dealers at this time. I simply posted that this dealership currently has a completely separate building for their Genesis showroom. I also stated that they have had the separate building since the Equus was first introduced here. I never stated that it would meet any future requirements going forward.