Genesis Sales forecast

[RichieRichLancair]

So Hyundai has sold 649 Genesis sedans so far, huh? And we have like 10 of those owners here. Boy, do we need to get the word out about this place.

It's more impressive that out of the 30 sold in June you had 1 owner here.

 

[GenFan]

Am I wrong or is that less than one per dealer? I recognize that many dealers didn't get them until late in the month, but this doesn't sound too impressive.

I'm sure sales will strengthen when the advertising kicks in.

 

[Simonwpb]

At Napleton's WPB I was the 2nd buyer. A woman bought the 1st silver one last Saturday. Their inventory is one silver and one cab red, so including my blue one they sold 2 out of 4 received the 1st month.
My insurance company kicked back the application as 'invalid VIN', another indication of how new the model is.
Dealers do have a limited inventory and no advertising yet so these first retails are not through much effort on their part. 2,500 a month is not an unreasonable goal. I still think many dealers when in gear can sell more than 5 a month! Well it will be fun to see how this plays out.

 

[Simonwpb]

August sales

Well only 1,177 Genesis sold in August... still almost double from the month before!

I put up 2007 and 2008 model sales for comparison.

Our "Club Genesis" still has less than 2,000 members.

 

[Sal Collaziano]

Re: August sales

So:

June: 30
July: 619
August: 1177

Not bad.. The advertising campaign starts this month. I'm outside the U.S. right now, so I don't know if it actually HAS started. If it has, I think a lot more will sell in September...

 

[Wilbur_the_goose]

I would actually buy one if the economy was better. My company (in the Global Fortune 10) is really hurting these days.

 

[njohnson]

How many do the competitors typically sell in a given month (Lexus, Infiniti, etc)?

I think sales will continue to rise, however it is around a $40K car considering most people will probably opt for the packages but no matter how many bells and whistles you put in it that is still a pretty high price for a car. I don't know what the average price people pay for a car nowadays but I would assume it's in the low 20's so you can't expect this car to ever have monster sales.

I have seen more marketing around here, they have a silver one in the mall with a big "test drive me" booth but I've noticed the local dealers only have 1-2 in stock at most. I still hate the dealers around here, I drove by the local hyundai dealer and there were 6 sales men standing out front like hawks, it really puts me off. I like to browse and if I need help I will ask for it.

 

[Wilbur_the_goose]

njohnson - great observtions.

Just picking up on something you wrote - I think Hyundai really needs to improve their dealer network. I feel slimy after leaving the typical Hyundai dealer.

 

[YEH]

I don't know what the average price people pay for a car nowadays but I would assume it's in the low 20's so you can't expect this car to ever have monster sales.

The avg. price of a new car sold in the US was over $28K - of course, this is probably before the economy really tanked and before the really high gas prices.

 

[DanTheMan]

I like to browse and if I need help I will ask for it.

Yeah, I know what you mean! I went to my local dealer after hours three different times to look it over, think about it, etc. I went the fourth time to drive it, talk dollars and sense with the sales staff/mgmt., and then to go home in either the car I came in ('07 Azera) or the new '09 Genesis. BTW, it's been five weeks now for the new "G" in my driveway! Ya gotta love it!

Dan :>)

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[DanTheMan]

"I don't know what the average price people pay for a car nowadays but I would assume it's in the low 20's so you can't expect this car to ever have monster sales.

Don't take a job in market forecasting! Keep in mind that a $40K car is targeted for a different financial realm. The typical customer isn't concerned as much about the economy as his/her income most likely hasn't changed. Remember, one of the major points that started the current economic issue was a housing crunch, where people were over-leveraged (not enough $$ to make payments, etc.). A $40K car customer probably isn't in this level. Just reading the threads and seeing what current Genesis owners have driven in the past (BMW, Mercedes, Lexus, etc.) tells me that we ARE a different kind of customer. A solid car will produce solid results.

Dan

 

[papadondo]

Well said Dan. Well said indeed.

 

[Wilbur_the_goose]

Dan
I'm a current BMW driver who really would like to get a Genesis. But the economy has stopped me in my tracks.

 

[DanTheMan]

Dan
I'm a current BMW driver who really would like to get a Genesis. But the economy has stopped me in my tracks.

Hi Wil--

While I'm sorry to hear about your personal economic situation, most owners of higher-end cars--including yourself--bought the car you currently drive based on your economic situation at the time you bought it, which hopefully included some thought as to where you might be in time down the road. If Hyundai, BMW, Lexus, etc. based their sales forecasts w/o any confidence in the future, they wouldn't have made their cars, and/or their brand name. In my business (flooring), sales to homeowners building homes upward of $750K are booming. Sales to homeowners that are building so-called 'spec houses' are down--way down. My world involves insurance claims settlements--not economically driven. My point is that people that have the money--regardless of the economic state at any given time--will buy a car in that price range. Hyundai will have to do their own 'sales job' on the target customer to get them to switch to Hyundai from whatever their previous make was.

My brother drives an '08 535. He has driven BMW for years--330Ci, 335, M3, and now the 535--all of them purchased new at the time. There are a few differences in his car and mine--but very few. He really liked the price of my car compared to his--nearly $20K less!!! I think if he'd have seen the Genesis before he bought his 535, he would be driving a Hyundai as well!

I wish you the best in your economic endeavors.

Dan

 

[Wilbur_the_goose]

Dan - simple for me... My company (a Global Fortune 10 firm) makes money based on the financial markets. About 20% of my salary last year was from a profit-based incentive plan. I figure that 20% will be < 3% this year.... And there's always the looming layoff threat.

 

[njohnson]

Don't take a job in market forecasting! Keep in mind that a $40K car is targeted for a different financial realm. The typical customer isn't concerned as much about the economy as his/her income most likely hasn't changed. Remember, one of the major points that started the current economic issue was a housing crunch, where people were over-leveraged (not enough $$ to make payments, etc.). A $40K car customer probably isn't in this level. Just reading the threads and seeing what current Genesis owners have driven in the past (BMW, Mercedes, Lexus, etc.) tells me that we ARE a different kind of customer. A solid car will produce solid results.

Dan

I wasn't even factoring in the current economic situation or middle vs. upper middle classes. I was just saying that in general that the point where you see huge sales is typically in the affordable range which is sub $30K and the Genesis even though it may be a steal is still well above that, virtually eliminating the possibilities of huge sales.

I don't personally think however now that you mention economic conditions that one who can afford a $40K car is necessarily well off and not affected by the economy. There is a big difference between someone being able to afford say a $40K car and a $80K car. There are people in this forum who have driven various cars of a higher level than the Genesis, and while you can't really capture much data from 15 people on a forum, I would assume that this won't always be the case.

Even those people who did switch from MB, Lexus, BMW, etc aren't necessarily switching from the vehicles in those lines that I would consider in the "adverse to economic conditions" range such as the S-Class, LS, and 7 series. I know plenty of people who own BMWs, MB, Lexus, etc who aren't necessarily that well off.

While we really won't know anything until after probably a year or so, I do know that if dealers only have 1 Genesis in stock they probably won't sell throngs of them.

 

[Simonwpb]

September Sales numbers.

OK here are the ugly sales numbers for September.
Total Genesis sold YTD are 2,855 so our owners club remains small.

There were less Genesis sold than in August

Hyundai USA sales fell -40% compared to the month before and -25% versus September 2007. Genesis sales fell -12% to 1,029 units for the month.

I wonder how other car manufacturers did in this gloomy financial world?

 

[sandy]

The typical customer isn't concerned as much about the economy as his/her income most likely hasn't changed.

Dan[/QUOTE]



I believe the pain from our current economic slow down is being felt by consumers at all financial levels.

A report in today's Wall Street Journal shows sales decreases in US Auto sales by market segment for Sept '09 vs Sept '08.

Midsize - 20.2%
Small -19.6
LUXURY -29.0
Large -22.4

Hardest hit is the Luxury segment . While Hyundai's sales were off 25.4% for this same period, BMW was off 25.8%, Mercedes 16.4%, Porsche 44.8%, Saab 27.2%, Land Rover 37.4%. Jaguar did better, only off 8.7% and on the bright side, Ferrari was UP 16%

 

[realpix]

I wish you the best in your economic endeavors.

Dan

And to us all. I guess that includes buying a Genesis at 1.9%? A way to save!

 

[Wilbur_the_goose]

Sandy- you're absolutely right. On a macro level, people just aren't buying cars nowadays. They're not buying refrigerators, stoves, houses, etc either.

This will be a very bad recession. Folks under 50 have no idea what may be coming.