What Happened To Genesis? - video

[KDX]

 

[GV70GUY]

Interesting so I guess this means that dealers no longer have to build a separate Genesis dealership?

 

[Mcc]

Interesting so I guess this means that dealers no longer have to build a separate Genesis dealership?

I think you are incorrect in your conclusion. They still need a separate physical building but not immediately.

 

[TurtleBoy]

I think you are incorrect in your conclusion. They still need a separate physical building but not immediately.

Actually he is correct. They announced in September that they are dropping the requirement for separate buildings/service areas. They are allowing separate showrooms within an existing Hyundai dealership.

"Genesis would like dealers that stick with the brand to set up stand-alone showrooms, but it is not required and not all are expected to make the investment. Raphael says the first dedicated stores should begin to appear within a couple of years."

Genesis to Mark New Phase With Repositioned U.S. Dealer Network

 

[Mcc]

So this is from a month later than your citation:
“Genesis aims to establish shop standards by the end of this year to clear the way for independent U.S. showrooms, Genesis General Manager Erwin Raphael said.”
“New Genesis showrooms will be stand-alone. Raphael said the company is scouting locations in each market, prioritizing new sites as opposed to taking over or renovating sites already in operation.”

Genesis wants retail spinoff done by end of 2020

 

[TurtleBoy]

So this is from a month later than your citation:
“Genesis aims to establish shop standards by the end of this year to clear the way for independent U.S. showrooms, Genesis General Manager Erwin Raphael said.”
“New Genesis showrooms will be stand-alone. Raphael said the company is scouting locations in each market, prioritizing new sites as opposed to taking over or renovating sites already in operation.”

Genesis wants retail spinoff done by end of 2020

That is the old plan from October 2017.

 

[Mcc]

That is the old plan from October 2017.

I guess I am reading it differently. To me the quote below refers to all dealerships.
“The reality is, many, many luxury customers tell us they love our products, they're amazing, but I'm not going into a Hyundai store to buy it," Raphael told Automotive News in September on the sidelines of the Genesis G70 sport sedan launch here at the Hyundai Motor Group's global r&d center outside Seoul.
"It's really hard to have the two cultures cohabitating," Raphael said. The split, he said, would benefit customers and dealers. "We realize it's complicated, but it's necessary."
The shift will leave "substantially" fewer dealers selling Genesis vehicles, the brand boss said, but he declined to say how many would be dropped.

 

[TurtleBoy]

I guess I am reading it differently. To me the quote below refers to all dealerships.
“The reality is, many, many luxury customers tell us they love our products, they're amazing, but I'm not going into a Hyundai store to buy it," Raphael told Automotive News in September on the sidelines of the Genesis G70 sport sedan launch here at the Hyundai Motor Group's global r&d center outside Seoul.
"It's really hard to have the two cultures cohabitating," Raphael said. The split, he said, would benefit customers and dealers. "We realize it's complicated, but it's necessary."
The shift will leave "substantially" fewer dealers selling Genesis vehicles, the brand boss said, but he declined to say how many would be dropped.

All of that was thrown out earlier this year. This has been discussed in detail many times on here,

 

[TurtleBoy]

Some more info:

Your article was from October 2017 and at that time they were planning to have a limited number of standalone dealerships.

Due to a backlash from existing dealers (and I personally believe a very low participation rate), they announced in the spring that the franchises would be open to all Hyundai dealers but were still requiring the standalone showrooms and service centers. Hyundai changes its mind on Genesis dealers -- again

The article I linked in my original post shows that the requirement for separate facilities was dropped also.

 

[Mcc]

All of that was thrown out earlier this year. This has been discussed in detail many times on here,

I apologize. I read the date wrong. You are correct.

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[TurtleBoy]

I apologize. I read the date wrong. You are correct.

No problem at all. I'm sure our discussion ended up being informative to people who are new to the situation.

 

[YEH]

Interesting so I guess this means that dealers no longer have to build a separate Genesis dealership?

Actually he is correct. They announced in September that they are dropping the requirement for separate buildings/service areas. They are allowing separate showrooms within an existing Hyundai dealership.

"Genesis would like dealers that stick with the brand to set up stand-alone showrooms, but it is not required and not all are expected to make the investment. Raphael says the first dedicated stores should begin to appear within a couple of years."

Genesis to Mark New Phase With Repositioned U.S. Dealer Network

Yeah, this whole thing has been convoluted and a disaster to say the least.

The initial build-out requirements were really strenuous (assumed that it was a way to limit the # of dealerships applying for a Genesis franchise) and thought it would be too much of a financial burden for dealer groups in smaller markets; would be better to have at least 2, if not 3, Genesis dealerships in a mid-sized market like Baltimore than just 1.

But at the same time, wish they kept the separate dealership requirement for the major metro areas (even if land is more $$).

Having separate showrooms is fine (for smaller markets), but they should require the showrooms to be physically separated (like on opposite ends of the lot).

There is at least 1 Lexus-Toyota dealership in the US which is like that (separate building from each other, but only need 1 building to house the service bays) and think that such a format is more common in Canada.

There also is a Audi and Kia dealership sharing the same lot.

Glad Alex did that video b/c saw so many misleading articles (by so-called automotive journalists) which made the lazy, uninformed assumption.

That being said, what's even more troubling is the info. that Genesis USA didn't create a separate company to import/sales distribution at the start (that should have been the very 1st step).

Previously, thought it had been the lawsuits and dealer rebellion which caused Genesis to drop their initial 100 dealership plan, but clearly, they had zero clue in what they were doing.

And (notwithstanding any lawsuits), the largest markets (CA, FL, TX, etc.) should have the 1st states to have the paperwork rolling when it came to clearing state regulatory hurdles.

All of this should have been started in 2016, or early 2017 at the latest (and even that would not give any time leeway for any issues that may arise).

Like I had stated, wouldn't be surprised if we see a change down the road when it comes to the top brass at Genesis USA.

 

[Sal Collaziano]

It's a shame because the cars were really selling well. If this mess hadn't happened, there'd be so many more Genesis cars out on the roads - which is great for marketing - because they look amazing...

 

[GV70GUY]

My local dealership when I bought the G80 already had the separate showroom within the dealership it's not large they usually have only 2 cars on display but there is enough room for 1 or 2 more. They were also one of the first to get the G70's.