Genesis lays out a U.S. overhaul plan

[YEH]

Genesis laid out the final details of its new dealer compensation package while preparing for its first off-lease vehicles headed to the certified pre-owned lot.

The young brand has new management, and its first crossover will soon hit the market. And Genesis dealers are bracing for rapid growth and the challenges that come with it.

Company executives provided details Saturday at the make meeting about what essentially will be an overhaul of nearly every aspect of the brand's U.S. operations. Included was final information on a facilities program rolled out this year that creates more differentiation between Genesis and the Hyundai dealerships that sell the luxury vehicles.

"We got a short- and long-term look at the whole product deployment strategy for the brand," Lanzavecchia said. "And it is brilliant."

Genesis executives have said publicly that a compact crossover will come next year, following the arrival in showrooms of the midsize GV80 crossover by summer. An EV will come around 2022.

Genesis lays out a U.S. overhaul plan

Genesis laid out the final details of its new dealer compensation package while preparing for its first off-lease vehicles headed to the certified pre-owned lot.

www.autonews.com

On an ancillary note - a NADA study on dealership-manufacturer relations has Hyundai and Kia moving into the top 10.

 

[Edmguy]

We are finally going to get a stand alone Genesis dealership in Edmonton, AB. It will be right next to a new Porsche dealership under construction right now. I am hoping it improves the experience here.

 

[EdP]

We are finally going to get a stand alone Genesis dealership in Edmonton, AB. It will be right next to a new Porsche dealership under construction right now. I am hoping it improves the experience here.

There have been a lot of complaints here about the lack of stand alone dealers. Of course, they come in all sizes but the investment is considerable. I just saw an article about a dealer in Australia that built a new dealership for Holden. The price tag was $2.6millionAUD or $1,7USD. GM also announced they are discontinuing the Holden line of cars. This was going to be a large shop but even a smaller one would be well over a $million. How many cars do you have to sell to pay for the loan on that every month?

Once the SUVs are going out the door I can see a larger city dealer building but I think it will be a long time before we see all Genesis coming out of stand alone stores.

 

[YEH]

^ What's prohibitive is the cost of land (and construction) in the major metro areas (it's a more expensive proposition than it was 30 years when the Japanese lux brands started).

That's why FoMoCo has been having such a tough time getting more of their split dealerships to pony up for a separate Lincoln store.

 

[GarnetTy1473]

There have been a lot of complaints here about the lack of stand alone dealers. Of course, they come in all sizes but the investment is considerable. I just saw an article about a dealer in Australia that built a new dealership for Holden. The price tag was $2.6millionAUD or $1,7USD. GM also announced they are discontinuing the Holden line of cars. This was going to be a large shop but even a smaller one would be well over a $million. How many cars do you have to sell to pay for the loan on that every month?

Once the SUVs are going out the door I can see a larger city dealer building but I think it will be a long time before we see all Genesis coming out of stand alone stores.

That's super cheap for a dealership. Ours cost $9.2 mil, not including the cost of the land. Our owner bought 100 acres, and spent 2 years moving dirt around to make the land usable. (it was previously all marsh land) Our dealership sits on 9 acres. We are building a new building this year just to house all my wholesale parts operations, details, used car inspections, and PDI's, and it's going to cost well over a million for it alone. And it's not going to be anything fancy.

 

[PMCErnie]

^ What's prohibitive is the cost of land (and construction) in the major metro areas (it's a more expensive proposition than it was 30 years when the Japanese lux brands started).

That's why FoMoCo has been having such a tough time getting more of their split dealerships to pony up for a separate Lincoln store.

Some folks may have forgotten that it wasn’t too many years ago (circa ‘05) that Lincoln was folding their stand-alone dealers into joint Ford showrooms. Yes, it was due to the lack of Lincoln/Mercury sales. It’s ridiculous to ping-pong back again. Leave we’ll-enough alone and, instead, set up Lincoln customer areas and specialists at the Ford dealers.

Regarding the latest “awakening” of the Genesis management, I can do nicely without John Legend, thank you. Maybe a better place to put some money would be to get some Genesis signs erected in front of Hyundai/Genesis dealerships. My dealer has never had ANY Genesis sign out front since the Genesis name was born in the ‘09 model year. No, not even a temporary banner. What gives, all-knowing Genesis gods, haven’t you heard about signs?

 

[MyCorvette]

According to today's latest infection stats from Korea, in my opinion the coronavirus will highly possible, significantly delay the brand - unless they move the G70/80/90 and GV80 manufacturing out of Korea.

The situation in Korea is really serious now - different than China, the Korean government can't effectively carry out the quarantine action the same as China, due to different political and legal cultures. This coronavius is deadly, highly contagious, and what makes it even worse - has a very long incubation period for some people, which leads to a very high R0 coefficient for this virus.

Even with very strong quarantine measures and even police/army step in to limit almost all citizens' social activity for more than 1 month (as of today), the outbreak ground zero city Wuhan, all crematoriums in this city need to work 24x7 to burn dead bodies non-stop, and still cannot catch up with the demand.

Without strong quarantine measures, Korea will become a large-size version of Wuhan. The fate of the Genesis brand is even not a topic at this moment - instead I have huge concern on the health/life safety for people in Korea.

 

[EdP]

According to today's latest infection stats from Korea, in my opinion the coronavirus will highly possible, significantly delay the brand - unless they move the G70/80/90 and GV80 manufacturing out of Korea.

The situation in Korea is really serious now - different than China, the Korean government can't effectively carry out the quarantine action the same as China, due to different political and legal cultures. This coronavius is deadly, highly contagious, and what makes it even worse - has a very long incubation period for some people, which leads to a very high R0 coefficient for this virus.

Even with very strong quarantine measures and even police/army step in to limit almost all citizens' social activity for more than 1 month (as of today), the outbreak ground zero city Wuhan, all crematoriums in this city need to work 24x7 to burn dead bodies non-stop, and still cannot catch up with the demand.

Without strong quarantine measures, Korea will become a large-size version of Wuhan. The fate of the Genesis brand is even not a topic at this moment - instead I have huge concern on the health/life safety for people in Korea.

This could get much worse world wide. I read this morning that some towns in northern Italy are shut down. Schools closed, stores closed, etc. Moving the manufacturing out of Korea would take a long time and you may foster spreading the virus if you send people to train the new location.

 

[PMCErnie]

According to today's latest infection stats from Korea, in my opinion the coronavirus will highly possible, significantly delay the brand - unless they move the G70/80/90 and GV80 manufacturing out of Korea.

The situation in Korea is really serious now - different than China, the Korean government can't effectively carry out the quarantine action the same as China, due to different political and legal cultures. This coronavius is deadly, highly contagious, and what makes it even worse - has a very long incubation period for some people, which leads to a very high R0 coefficient for this virus.

Even with very strong quarantine measures and even police/army step in to limit almost all citizens' social activity for more than 1 month (as of today), the outbreak ground zero city Wuhan, all crematoriums in this city need to work 24x7 to burn dead bodies non-stop, and still cannot catch up with the demand.

Without strong quarantine measures, Korea will become a large-size version of Wuhan. The fate of the Genesis brand is even not a topic at this moment - instead I have huge concern on the health/life safety for people in Korea.

Talk about hand-wringing. Your post has apple-solutely nothing to do with the topic of this thread.

 

[3.3 Rulz]

We'll see, always delayed like crazy anyway, and now with the C virus, it's only getting worse.
It will be early 2021 before we see GV80's and early 2022 before we see any GV70's in the US.

I guess the C virus is better than the T virus, LOL!

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[3.3 Rulz]

The big news IMO is the new 2.5T engine, I wanna see it and test drive it in the new Optima or the Sonata N line.
Might be good enough in the GV70, especially if it can save me $10K as opposed to getting the 3.5TT

 

[dingyibvs]

According to today's latest infection stats from Korea, in my opinion the coronavirus will highly possible, significantly delay the brand - unless they move the G70/80/90 and GV80 manufacturing out of Korea.

The situation in Korea is really serious now - different than China, the Korean government can't effectively carry out the quarantine action the same as China, due to different political and legal cultures. This coronavius is deadly, highly contagious, and what makes it even worse - has a very long incubation period for some people, which leads to a very high R0 coefficient for this virus.

Even with very strong quarantine measures and even police/army step in to limit almost all citizens' social activity for more than 1 month (as of today), the outbreak ground zero city Wuhan, all crematoriums in this city need to work 24x7 to burn dead bodies non-stop, and still cannot catch up with the demand.

Without strong quarantine measures, Korea will become a large-size version of Wuhan. The fate of the Genesis brand is even not a topic at this moment - instead I have huge concern on the health/life safety for people in Korea.

All deceased in China are cremated by law, so I doubt a couple thousand deaths is taxing crematoria in a city the size of Wuhan that much. By comparison, the death rate in China is about 7/1000, so in a city the size of Wuhan you'd expect about 70000 deaths yearly, or about 12,000 in 2 months. Adding ~2000 to those numbers is a significant increase, but probably not crematoria working 24x7 magnitude.

Moving production is not really an option. It's a high infectivity virus as you mentioned, it'll spread everywhere. If it mutates seasonally like the flu then it'll be here to stay, there's nowhere to run from it. In that case, it'll slowly die down as susceptible individuals die off and the global population as a whole develop some immunity from it. If it doesn't mutate, though, we'll probably just develop a vaccine and perhaps even some semi-effective treatment and its threat will be reduced to the same level as the flu.

 

[MyCorvette]

All deceased in China are cremated by law, so I doubt a couple thousand deaths is taxing crematoria in a city the size of Wuhan that much. By comparison, the death rate in China is about 7/1000, so in a city the size of Wuhan you'd expect about 70000 deaths yearly, or about 12,000 in 2 months. Adding ~2000 to those numbers is a significant increase, but probably not crematoria working 24x7 magnitude.

Moving production is not really an option. It's a high infectivity virus as you mentioned, it'll spread everywhere. If it mutates seasonally like the flu then it'll be here to stay, there's nowhere to run from it. In that case, it'll slowly die down as susceptible individuals die off and the global population as a whole develop some immunity from it. If it doesn't mutate, though, we'll probably just develop a vaccine and perhaps even some semi-effective treatment and its threat will be reduced to the same level as the flu.

The official death count released by Chinese government is highly inaccurate. In the past month (especially 2 weeks ago), many infected people died in their home (because hospitals in Wuhan did not have enough capacity to care them), one man was even so painful that he jumped down a bridge to stop the suffering permanently - those are not (and is technically hard to) counted into the death toll. I know these facts because I personally know people from Wuhan, I know what they tell me is true.

Latest research show that:

1. a person can carry the virus for long time without showing any symptom, but he is infectious during that time frame;

2. a cured patient can still carry the virus;

3. a cured patient can still NOT immune to this virus, and be infected the 2nd time

4. Once developed into late stage, the death rate is very high - > 60%

If you believe this virus is "high infectivity", are you willing to take a one-way trip to Daegu, Korea right now? Remember do not wear any mask, and walk inside the high density population area on a daily basis. Let's see where you will be in one month.

 

[PMCErnie]

Maybe you doctors, coroners and morticians could open another thread somewhere. The title of this thread is Genesis lays out a U.S. overhaul plan.

 

[MyCorvette]

Maybe you doctors and morticians could open another thread somewhere. The title of this thread is Genesis lays out a U.S. overhaul plan.

the coronavirus will affect this overhaul plan.

 

[Mcc]

the coronavirus will affect this overhaul plan.

So why not describe how it actually effects the plan.

 

[TinsleyC]

Does anyone else know of any dedicated Genesis dealerships opening in the USA?

So, why is it so difficult for Genesis to do this, when so many other brands have accomplished this (Lexus, Acura, Infiniti, etc). I've heard of complicated legal issues, but why, and why are these other luxury brands not affected by the same issues?

Do these new Genesis corporate plans for the United States include efforts to help fund or open dedicated Genesis dealerships?

 

[MyCorvette]

So why not describe how it actually effects the plan.

The spread of virus will impact Korea's economy, and ultimately causes financial hardship to big corporations like Hyundai.

Since Genesis USA as a business unit, it is losing money, and the reorg plan costs even more money, this will make it unworthy under the era of financial hardship.

In addition, it is highly possible that after a few weeks, there will be no inventory available to ship to the states for sale (factory shut down, worker unable to work due to disease etc), so it makes no difference whether to reorg or not.

Generally speaking, even without this virus incident, it is not a good time to startup a luxury brand. Market has changed and people's taste have changed also. Whether an auto maker has luxury brand or not does not matter as much as the 1980s.

I own a G90 and it is a fine vehicle. However, my perception and impression on other Hyundai-branded vehicles is not affected by the existence of the Genesis brand. They will not become "better" simply because I know there is a Genesis brand.

 

[PMCErnie]

The spread of virus will impact Korea's economy, and ultimately causes financial hardship to big corporations like Hyundai.

Since Genesis USA as a business unit, it is losing money, and the reorg plan costs even more money, this will make it unworthy under the era of financial hardship.

In addition, it is highly possible that after a few weeks, there will be no inventory available to ship to the states for sale (factory shut down, worker unable to work due to disease etc), so it makes no difference whether to reorg or not.

Generally speaking, even without this virus incident, it is not a good time to startup a luxury brand. Market has changed and people's taste have changed also. Whether an auto maker has luxury brand or not does not matter as much as the 1980s.

I own a G90 and it is a fine vehicle. However, my perception and impression on other Hyundai-branded vehicles is not affected by the existence of the Genesis brand. They will not become "better" simply because I know there is a Genesis brand.

I think you want “The Sky is Falling” group. Or, perhaps, the “Flat Earth” forum.

 

[EdP]

Does anyone else know of any dedicated Genesis dealerships opening in the USA?

So, why is it so difficult for Genesis to do this, when so many other brands have accomplished this (Lexus, Acura, Infiniti, etc). I've heard of complicated legal issues, but why, and why are these other luxury brands not affected by the same issues?

Do these new Genesis corporate plans for the United States include efforts to help fund or open dedicated Genesis dealerships?

The other brands you mention were brought into the US as a new brand. Genesis was a model sold by Hyundai dealers and later made into a separate brands. Dealers already had rights to sell it. Franchise laws in 50 different states became involved and dealers that did not want to give up Genesis sued, etc.