Genesis brand 2018 June US sales falls under 800 units

[MyCorvette]

G80 642 units; G90 154 units. Total 796.

June is 2Q end and also summer break time, best time for people to buy new cars. With these good factors, sales still keeping falling - does senior managements of Genesis really has a plan in mind to keep this brand running in US market?

I am deeply concerned since I bought the G90 and do not want to see the brand doing worse and worse in the market.

 

[Mr. Incredible]

The "brand" will just get absorbed back into Hyundai if it doesn't succeed, so it's not like you will lose anything. Technically speaking it is still Hyundai as far as most States and the Automotive resale world is concerned. The Genesis both G80 and G90 are holding their values a bit better than Lexus and Acura right now.

Remember the history of Lexus, launched in 1989 with the LS400, it took them another 3 years to bring the ES, SC, and GS models into the fold, during that time they ran at an operational loss, then in 1995 there was the 100% tariffs on select Japanese luxury vehicles proposed by U.S. government in effort to settle long-standing U.S.-Japan trade dispute which tanked their sales for nearly a year.


Give Genesis time, it has only been 2 model years, hopefully their management will figure it out and things will start looking better in the next 2-3 years.

 

[EdP]

G80 642 units; G90 154 units. Total 796.

I am deeply concerned since I bought the G90 and do not want to see the brand doing worse and worse in the market.

I'm not at all concerned. First, keep in mind that car sales in general are down. The Asian mentality is a bit different too. They are usually focused on the long term, not just next quarter so they will stick with it knowing the end result is good. They are backed by Hyundai, a huge company. There are new models coming out too. Once they hit the market the brand will get much more attention.

 

[larrymg1]

Car sales on pace to hit 60-year low

Car sales on pace to hit 60-year low

 

[Starflyer]

I'm not surprised. SUV sales have almost double the last 5 years and show no sign of slowing. If people don't have a truck, they need an SUV to haul all their shit. I'm in an upscale area (38 homes in the development) and walking around the area, if a garage door is opened, the garage is FULL of shit. We're one of the few in the development that keep our 2 cars in the garage. Most of the other SUV's sit in the driveway, waiting for a run to buy somemore shit to cram in the garage.

Re the G90 sales, it's just too big of an upscale with only 2 models in the lineup. The G70 will help and probably become the sales leader until Hyundia gets their SUV's to market. I'm thinking they'll fly off the Genesis lots when they arrive.

I won't be buying one as I've crossed over the other way, Acura RDX, Range Rover, Ford Flex, Dodge Darango, Chev Suburban, Ford Bronco and Ford Bronco II in reverse order. What gets me are people driving SUV's like they're Porsches.

 

[PMCErnie]

I'm not surprised. SUV sales have almost double the last 5 years and show no sign of slowing. If people don't have a truck, they need an SUV to haul all their shit. I'm in an upscale area (38 homes in the development) and walking around the area, if a garage door is opened, the garage is FULL of shit. We're one of the few in the development that keep our 2 cars in the garage. Most of the other SUV's sit in the driveway, waiting for a run to buy somemore shit to cram in the garage.

Re the G90 sales, it's just too big of an upscale with only 2 models in the lineup. The G70 will help and probably become the sales leader until Hyundia gets their SUV's to market. I'm thinking they'll fly off the Genesis lots when they arrive.

I won't be buying one as I've crossed over the other way, Acura RDX, Range Rover, Ford Flex, Dodge Darango, Chev Suburban, Ford Bronco and Ford Bronco II in reverse order. What gets me are people driving SUV's like they're Porsches.

Seems like you are surrounded by sh*t.

 

[Mr. Incredible]

Seems like you are surrounded by sh*t.

Left Coast Bro,.. of course we are.

 

[YEH]

G80 sales have slipped more than what would like to see, but there may be extenuating circumstances.

Last week, there were only around 1,200 G80s listed nationally by Autotrader - which was a month's supply based on January's sales rate.

Since then, the # of G80s listed has increased to 1,800 (so a new allotment hit dealerships).

Despite sedans struggling to sell in this market, nonetheless would like to see G80 sales closer to the 800-900 monthly sales mark, if not the 1k/month mark (may be difficult to do w/ a model towards the end of its life-cycle; the G90 could certainly use the sexier sheetmetal arriving w/ the facelift).

YTD, the G80 is still outselling the GS, A6, CTS, Q70 and XF.

Speaking of the A6, Audi sold 309 last month and even worse, only 51 for the A8.

Don't watch TV, so don't know if Hyundai has been running commercials for the G80 and/or G90, but suspect that they are concentrating on the new Veloster (which launched recently) and the impending launch of the new Santa Fe.

Along w/ saving their Genesis ad $$ on whenever the G70 launches.

 

[Mcc]

Don't watch TV, so don't know if Hyundai has been running commercials for the G80 and/or G90, but suspect that they are concentrating on the new Veloster (which launched recently) and the impending launch of the new Santa Fe.

I watch quite a bit of tv and have never seen an ad for the Veloster and am pretty sure not for the Santa Fe either.

 

[YEH]

^ Surprised you haven't seen this Veloster commercial yet.

Hyundai likely spent a pretty penny for the tie-up/product placement w/ the Marvel film, but such an investment seems to have paid off (unlike the NFL sponsorship deal) w/ Ant-Man and the Wasp grossing nearly 170 million worldwide in its first weekend.

Reason why you haven't seen ads for the Santa Fe is that the new Santa Fe is slated to be launched sometime in the fall/early winter.

The 3 big launches for Hyundai this year are the Kona, Veloster and new Santa Fe.

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[DWIL80]

I love my 15 Genny, but damn that new Range Rover Velar is sexy! I also see nothing but SUV’s and crossovers everywhere, esp ford explorers

 

[YEH]

As I had suspected (based on the lower than usual supply of the G80), corporate has been cutting down on the supply of 2018MY G80's and G90's in order to have a minimal amount when the 2019MY, including the G70, start rolling onto the lots.

Basically, few, if any 2018MY remain at the ports w/ the dealerships pretty much having on their lots what they can sell for the next few months until they start receiving the 2019MY (this, limited to those dealerships/dealer groups which are awarded a Genesis store).

For the Hyundai dealerships which no longer will get to sell Genesis products, figure there isn't much incentive to move the metal; speaking of incentives, the lower supply also explains reduced incentives.

 

[MyCorvette]

I suspect whether the G70 will be successful in US market.

If you read performance test review from multiple US mainstream auto media, they all complain one major design flaw: the Hyundai's 8AT overheat very easily.

This symptom is so serious that the 8AT even can take only one launch before raising the overheat warning light. And C&D just tell us explicitly in today's Stinger article:

"A launch-controlled 60 mph arrived in 4.7 seconds and was accompanied by a persistent overheating-transmission warning, which eventually manifested in activating limp mode after repeated runs with the eight-speed shifting itself."

In the G90 3.3T test review, the editor also mentions the 8AT performs funky after several 0-60 run.

Since the G70 shares the same powertrain, it will has the same issue. To compete in this sector against major players like the 3-series/C class/A4 etc., you simply cannot make this mistake. This issue is very serious and unforgivable.

 

[YEH]

^ Been a bit bearish about G70 sales, but more due to the limited rear passenger space and the piece-meal switch-over when it comes to the sales network (still making decisions as to the total # of Genesis dealerships, so not every Hyundai dealership that will be getting a Genesis store will sell the G70 at launch).

Likely won't match the Stinger when it comes to 1st year sales.

 

[Edmguy]

Interesting comment on the overheating. When I test drove the G70, I did 3 launches in a row (at the encouragement of the salesperson) on a side road, however, I only got up to about 80km/h each time. No overheat warnings at that time.

On my personal car I haven't done any back to back ones yet, but I will try to see if I can replicate this just for fun.