Disappearing Genesis Dealerships

[Mdb1215]

I purchased a 2019 G70 about 11 months ago at my local Genesis(Hyundai) dealership. My G70 needed service and I called the dealer for an appointment. I was informed they were no longer a Genesis dealers and could not perform any service on the car. They referred me to dealer 115 miles away which I called to make an appointment. I was again informed that they were no longer a Genesis (Hyundai) dealership and could not service my car. They referred me to a dealer an additional 30 miles further away with whom I was able to make an appointment. I contacted Genesis and they confirmed that those dealerships were no longer Genesis dealers and that they were working on the situation but for now I would have to drive to get the car serviced. I was wondering if anyone else is having a similar issue and how prevalent it is. I realize Genesis as a brand is just getting started but it seems that better planning would have gone a long way. This is a rough start for a brand that wants to have a premium image.

Yes same in Evansville IN. The dealership I purchased from sold it’s Hyundai dealership and didn’t or couldn’t keep the Genesis dealership which was at the same place. I’m being told I’ll have to drive about a hundred miles for the warranty work. So much for concierge service and free oil changes.

 

[gdevine]

Same here. It seems like they are closing dealerships faster than they are opening. I had a dealer 25 miles and 40 miles from me when I leased a 2019 G70. Now the closest one is 80 miles. I called them to make an appointment and of course, they did not call me back. Truthfully it seems that they are in disarray. I purchased the vehicle 3 months ago and now I thinking of selling it only because of their lousy service availability. Too bad I love the car.

 

[EdP]

Same here. It seems like they are closing dealerships faster than they are opening.

In the end, that is a good thing. Better to have 100 or 150 good dealers than 400 bad ones.
The original plan was for 100 Genesis only dealers until the franchise laws stopped that and allowed Hyundai dealers to continue. It will take some time to straighten out.

 

[Alfer]

They just torn down the shi**y old Hyundai shop on the main drag of car dealers and the sign out front says they are building an all new Genesis and Hyundai shop in it's place.

 

[YEH]

The dealer group led by the co-owner of the NFL Bucs recently acquired Hyundai/Genesis of Glendale, CA.

This (Hyundai) is the 1st non-lux acquisition by the dealer group, so expect to see them building a separate Genesis store.

 

[gdevine]

In the end, that is a good thing. Better to have 100 or 150 good dealers than 400 bad ones.
The original plan was for 100 Genesis only dealers until the franchise laws stopped that and allowed Hyundai dealers to continue. It will take some time to straighten out.

I agree with you 100%. However, When I purchased my 2019 G70, there were two dealers within 40 miles selling and supposedly servicing Genesis vehicles, and offering concierge service. One of the dealers even lied through their teeth and said they were building a stand-alone Genesis dealership. They both closed about 8 months ago and now the closest dealer is 75 miles and still associated with Hyundai. I can't even get a return call from them to schedule an oil change and a look-over of the vehicle. Finally, I got a hold of them today and the closest opening they have is Sept 16. They are still a Hyundai dealership. The point is they are slow to open standalone dealerships and in the meantime, it appears that they are bothered with Genesis owners and certainly do not prioritize that brand. I called another dealer further away today and they said they would get back to me in an hour or so. NO return call. Bottom line terrible service. I love the vehicle but hate the dealers that sell and currently service them as much as they hate me LOL. I think I made your point LOL.

 

[EdP]

I agree with you 100%. However, When I purchased my 2019 G70, there were two dealers within 40 miles selling and supposedly servicing Genesis vehicles, and offering concierge service. One of the dealers even lied through their teeth and said they were building a stand-alone Genesis dealership. They both closed about 8 months ago and now the closest dealer is 75 miles and still associated with Hyundai. I can't even get a return call from them to schedule an oil change and a look-over of the vehicle. Finally, I got a hold of them today and the closest opening they have is Sept 16. They are still a Hyundai dealership. The point is they are slow to open standalone dealerships and in the meantime, it appears that they are bothered with Genesis owners and certainly do not prioritize that brand. I called another dealer further away today and they said they would get back to me in an hour or so. NO return call. Bottom line terrible service. I love the vehicle but hate the dealers that sell and currently service them as much as they hate me LOL. I think I made your point LOL.

Would you build a dealership today? Just the other day I was watching something about car sales and the long waits. They had a Toyota dealer with a very empty lot. My Hyundai/Genesis dealer had not had a car in the showroom for over 6 months.

If you were a bank, would you lend a million or more to a dealer that cannot get enough cars to sell? What would you present as a business plan?

I think they had a long term plan but the pandemic and chip shortage pushed things back a couple of years.

My dealer has extended the appointment times but I still get good attention in a nice facility. Not all are like that though.

 

[gdevine]

Would you build a dealership today? Just the other day I was watching something about car sales and the long waits. They had a Toyota dealer with a very empty lot. My Hyundai/Genesis dealer had not had a car in the showroom for over 6 months.

If you were a bank, would you lend a million or more to a dealer that cannot get enough cars to sell? What would you present as a business plan?

I think they had a long term plan but the pandemic and chip shortage pushed things back a couple of years.

My dealer has extended the appointment times but I still get good attention in a nice facility. Not all are like that though.

NO, For the above reasons you listed I would not build a dealership today. In addition, something tells me manufacturers might go to Tesla's pricing model of non-negotiable transactions. The CEO of Ford mentioned that they were going to take a hard look at online ordering and manufacturer pricing only. I don't think too many dealers will be thrilled if that comes to fruition.

 

[PMCErnie]

I agree with you 100%. However, When I purchased my 2019 G70, there were two dealers within 40 miles selling and supposedly servicing Genesis vehicles, and offering concierge service. One of the dealers even lied through their teeth and said they were building a stand-alone Genesis dealership. They both closed about 8 months ago and now the closest dealer is 75 miles and still associated with Hyundai. I can't even get a return call from them to schedule an oil change and a look-over of the vehicle. Finally, I got a hold of them today and the closest opening they have is Sept 16. They are still a Hyundai dealership. The point is they are slow to open standalone dealerships and in the meantime, it appears that they are bothered with Genesis owners and certainly do not prioritize that brand. I called another dealer further away today and they said they would get back to me in an hour or so. NO return call. Bottom line terrible service. I love the vehicle but hate the dealers that sell and currently service them as much as they hate me LOL. I think I made your point LOL.

Genesis had a better idea. They needed to get rid of those good-enough Hyundai dealers. Some owners were complaining that they had to use the same dealership toilets as Hyundai drivers.

 

[pulsar]

With the direction the market place is moving, a new dealer today really no longer needs a really large dealer lot or large showroom. A small lot for deliveries and a showroom that holds several cars is all they need minus the service center. I read several articles that dealers like working off a made to order system and with set/fixed pricing. If the chip shortage ever rights-itself and cars are more readily available, I can see dealers resisting pre-ordering and keeping in stock large inventory. Their overhead cost will go down for they are not paying interest or floor-plan cost to the manufacturers, the number of employees in the showroom needed will go down. If your a dealer, what’s not to like? The consumer will no longer walk in a buy a car and take it home same day and we have no negotiation flexibility anymore so we get screwed with these terms. Just glad I have no need a for a new car in my family for several years yet.

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[EdP]

With the direction the market place is moving, a new dealer today really no longer needs a really large dealer lot or large showroom. A small lot for deliveries and a showroom that holds several cars is all they need minus the service center. I read several articles that dealers like working off a made to order system and with set/fixed pricing. If the chip shortage ever rights-itself and cars are more readily available, I can see dealers resisting pre-ordering and keeping in stock large inventory. Their overhead cost will go down for they are not paying interest or floor-plan cost to the manufacturers, the number of employees in the showroom needed will go down. If your a dealer, what’s not to like? The consumer will no longer walk in a buy a car and take it home same day and we have no negotiation flexibility anymore so we get screwed with these terms. Just glad I have no need a for a new car in my family for several years yet.

Some time back I checked the Canada web site and got the pricing. Converted to USD, it was not too bad. IIRC, it was less than US sticker and a bit of a discount. Also, no BS selling a bunch of add-on nonsense.

The downside is for people that cannot plan ahead and need a car NOW after yours was totaled or similar situations. Choice will be slim, at least for new.

 

[G-327078]

I purchased a 2019 G70 about 11 months ago at my local Genesis(Hyundai) dealership. My G70 needed service and I called the dealer for an appointment. I was informed they were no longer a Genesis dealers and could not perform any service on the car. They referred me to dealer 115 miles away which I called to make an appointment. I was again informed that they were no longer a Genesis (Hyundai) dealership and could not service my car. They referred me to a dealer an additional 30 miles further away with whom I was able to make an appointment. I contacted Genesis and they confirmed that those dealerships were no longer Genesis dealers and that they were working on the situation but for now I would have to drive to get the car serviced. I was wondering if anyone else is having a similar issue and how prevalent it is. I realize Genesis as a brand is just getting started but it seems that better planning would have gone a long way. This is a rough start for a brand that wants to have a premium image.

I’ll NEVER buy another Genesis again. I have a 2021 GV80 , and the same thing happened to me. Hyundai dealership I bought it from stopped being a Genesis dealer within six months after my purchase. Another Hyundai dealer within 20 miles of me also has dropped their Genesis dealership. I drive about 45 miles to a Genesis dealer now for service. I love the car but Hyundai really dropped the ball on the Genesis brand. I’m going back to Lexus and their primo customer service that I’d stayed with for more than 20 years.

 

[YEH]

^ Those Hyundai dealerships should never have gotten a Genesis franchise as they were never serious about the huge financial commitment it would take.

Genesis actually wants to see the overall # of dealerships to continue to fall as it would weed out the weak/not serious franchisees and supply to the remaining dealerships would be less problematic.

Genesis never wanted the 300+ dealerships they started out with (now down to 275 or so), as the original plan was for only 100 dealerships, which had to be abandoned after the lawsuits.

 

[PMCErnie]

^ Those Hyundai dealerships should never have gotten a Genesis franchise as they were never serious about the huge financial commitment it would take.

Genesis actually wants to see the overall # of dealerships to continue to fall as it would weed out the weak/not serious franchisees and supply to the remaining dealerships would be less problematic.

Genesis never wanted the 300+ dealerships they started out with (now down to 275 or so), as the original plan was for only 100 dealerships, which had to be abandoned after the lawsuits.

Yes, Genesis corporate is quite happy to sell vehicles that they know will be impossible for many, otherwise satisfied, buyers to eventually get serviced. I call it the “no soup for you” warranty.

 

[YEH]

^ These franchisees which aren't willing to make the investment tend to be the ones that people complain about for poor service.

Also, despite having a lot LESS vehicles to sell, Genesis has a good bit higher dealership count than Lexus (and way more than what Lexus started with), much less the Germans.

There are far fewer Lexus dealerships than Toyota dealerships and yet, their owners are willing to drive the extra miles for service.

Also, it's better for Genesis dealerships to not only have more vehicles to sell, but in the long term, more vehicles to service (which, along w/ used vehicle sales, are the real profit makers for dealerships).

A financially healthier dealership usually translates to better service (not coincidentally, Lexus dealerships are among the most profitable).

 

[PMCErnie]

^ These franchisees which aren't willing to make the investment tend to be the ones that people complain about for poor service.

Also, despite having a lot LESS vehicles to sell, Genesis has a good bit higher dealership count than Lexus (and way more than what Lexus started with), much less the Germans.

There are far fewer Lexus dealerships than Toyota dealerships and yet, their owners are willing to drive the extra miles for service.

Also, it's better for Genesis dealerships to not only have more vehicles to sell, but in the long term, more vehicles to service (which, along w/ used vehicle sales, are the real profit makers for dealerships).

A financially healthier dealership usually translates to better service (not coincidentally, Lexus dealerships are among the most profitable).

The complaint is that some folks are getting screwed when, suddenly, they have no service facility within reasonable distance. They have been abandoned. Then the pain continues when their local Hyundai dealer can’t help them either. Rules is rules, they say.

While all this customer backstabbing is going on, some Genesis execs are partying in their glass towers, celebrating how well they are accomplishing their dealer reduction objectives.

As we used to say when I was working in NYC, “Gimme a flogging break!”

 

[Jhon]

OK, so i open a Genesis dealership but I don't have any cars to sell. I would go broke,
Maybe when we start to get more cars and the dealership can have 10 of each model on his lot for people to pick from and drive off the lot the same day, like back in the good old days 3 or 4 years ago.

 

[EdP]

The complaint is that some folks are getting screwed when, suddenly, they have no service facility within reasonable distance. They have been abandoned. Then the pain continues when their local Hyundai dealer can’t help them either. Rules is rules, they say.

While all this customer backstabbing is going on, some Genesis execs are partying in their glass towers, celebrating how well they are accomplishing their dealer reduction objectives.

As we used to say when I was working in NYC, “Gimme a flogging break!”

Is it better they celebrate having 300 crappy dealers? As a Genesis owner, would you rather drive 5 miles to a crappy dealer or 40 miles to an excellent one?

Not enough cars and sales to support 300 good ones.

 

[PMCErnie]

Is it better they celebrate having 300 crappy dealers? As a Genesis owner, would you rather drive 5 miles to a crappy dealer or 40 miles to an excellent one?

Not enough cars and sales to support 300 good ones.

“Crappy” is very subjective, most would agree. I’m sure most current and future abandoned owners would be happy with less than perfect. The slaughter isn’t over yet.

 

[YEH]

^ The vast majority of lux owners (of all brands) are fine driving upwards of 25-40 mi to get to a dealer like they do now.

There are far fewer Land Rover dealerships and yet LR, can't keep up with demand for the RR and Defender lineups.

But as we have seen, there have been numerous complaints on this board about poor service and how, as a result, was going to be the last Genesis they purchase.

Buyers who pay for higher end lux models (say, $60k and up) expect service to be commensurate with the prices they are paying.