Are there any free standing Genesis dealerships anywhere?

[turnne]

I recall that they were moving the brand away from Hyundai dealers

Something that I 100% agree with. However all I have seen is dealers creating a space within/adjacent to their current Hyundai dealership

I had seen article that said Hyundai dealers were balking about the costs to open a separate dealership...something I do understand
Luxury sedans is a shrinking market and only selling a few hundred cars a month that you have to discount heavily surely gives them pause
My understanding is that they are coming with a cross over shortly?
It seems the bright sport for the Asian manufacturers is those cross overs. I suspect vehicles like the RX is what is keeping the lights on at the Lexus dealerships
Typically to appeal to luxury buyers you need to be in the better/more expensive parts of town ..your dealership has to be better outfitted/finished and you have to have more staff to offer a higher level of service
To use Lexus as an example with about 240 dealers that's not even two LS460's per month per dealer on average. Meanwhile they sold over 10,000 RX's crossovers in August

These figures seem to mirror for Infiniti and Acura

Meanwhile the Germans...especially Mercedes, have to be "counting their money" with high sedan and SUV sales that I don't think they have to discount heavily to sell

Warren

 

[Sal Collaziano]

I believe there are a few Genesis-specific dealerships but if I'm not mistaken they were put up by dealership owners who had the finances available to do so. Hyundai had originally intended to stay away from Genesis-specific dealerships in the beginning but over the past few months they've expressed the need to make this happen sooner than later.

 

[Mark_888]

I would not think that Genesis dealerships are limited to existing Hyundai dealers, although they may get first crack at them. Usually, a dealership is funded by independent companies with their own finances (not by the manufacturer), but I suspect that Genesis Motors is going to have to kick in some money to get enough new brand new separate dealerships to be opened.

Anyone on this forum with a about $5 million (my wild guess) they want to invest in an automobile dealership, should contact Genesis Motors.

 

[GarnetTy1473]

I would not think that Genesis dealerships are limited to existing Hyundai dealers, although they may get first crack at them. Usually, a dealership is funded by independent companies with their own finances (not by the manufacturer), but I suspect that Genesis Motors is going to have to kick in some money to get enough new brand new separate dealerships to be opened.

Anyone on this forum with a about $5 million (my wild guess) they want to invest in an automobile dealership, should contact Genesis Motors.

Currently, Genesis is only offered to existing Hyundai dealerships. All Hyundai dealerships can sell the G80, while you have meet certain criteria to sell the G90. Currently in the Indy market, there 5 Hyundai dealers, 4 of which can sell the G90. There is a 6th one being built that should open in a couple months, and from what I've heard, they will be able to sell the G90. Come March, with the release of the G70, Genesis will be reducing the number of dealerships allowed to sell the Genesis brand. From what I've heard, the Indy market, with 5 of 6 Hyundai dealers selling Genesis, it will be reduced down to only 2 dealerships. The one I work at will be one that stays. None in the Indy market have a standalone Genesis building. My dealership separates Genesis more than the others, as the Genesis showroom is on the complete opposite side of the building. My owners owns 100 acres here. He has 3 other lots big enough to put dealerships on, which he is thinking of building a standalone Genesis in a few years once they have more models and we're selling more.

 

[turnne]

I would not think that Genesis dealerships are limited to existing Hyundai dealers, although they may get first crack at them. Usually, a dealership is funded by independent companies with their own finances (not by the manufacturer), but I suspect that Genesis Motors is going to have to kick in some money to get enough new brand new separate dealerships to be opened.

Anyone on this forum with a about $5 million (my wild guess) they want to invest in an automobile dealership, should contact Genesis Motors.

Typically the manufacturer does subsidize some of the dealership in a luxury car scenario
Its a way to keep "the standards" set by the brand and thus it should be a win win for both the dealership and the brand

However...the dealership owner's are business people and they are FOR PROFIT businesses
With so few cars sold on monthly basis currently..I don't see how the dealership could make their floorplan financials work

However...since they are connected to Hyundai dealerships that makes some sense and clearly that is covering the overhead

But still you have to wonder if the dealer can sell one G90 or 50 Elantras in the same time frame.. which one are they going to concentrate on more

Hyundai could offer a great subsidy to the dealerships to get their brand off the ground..like I understand Lexus did

But that is risky...as I understand Toyota spent a billion dollars( adjusted for inflation) to launch the Lexus brand

Warren

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I believe there are a few Genesis-specific dealerships but if I'm not mistaken they were put up by dealership owners who had the finances available to do so. Hyundai had originally intended to stay away from Genesis-specific dealerships in the beginning but over the past few months they've expressed the need to make this happen sooner than later.

Hopefully they understand they really need to. That and some aggressive marketing campaigns
Funny how I see Hyundai commercials all the time

Of the 5-6 Hyundai dealers in my market..I would only say two of them are in areas where you would see a luxury car dealership

Warren

 

[Sal Collaziano]

Typically the manufacturer does subsidize some of the dealership in a luxury car scenario
Its a way to keep "the standards" set by the brand and thus it should be a win win for both the dealership and the brand

However...the dealership owner's are business people and they are FOR PROFIT businesses
With so few cars sold on monthly basis currently..I don't see how the dealership could make their floorplan financials work

However...since they are connected to Hyundai dealerships that makes some sense and clearly that is covering the overhead

But still you have to wonder if the dealer can sell one G90 or 50 Elantras in the same time frame.. which one are they going to concentrate on more

Hyundai could offer a great subsidy to the dealerships to get their brand off the ground..like I understand Lexus did

But that is risky...as I understand Toyota spent a billion dollars( adjusted for inflation) to launch the Lexus brand

Warren

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Hopefully they understand they really need to. That and some aggressive marketing campaigns
Funny how I see Hyundai commercials all the time

Of the 5-6 Hyundai dealers in my market..I would only say two of them are in areas where you would see a luxury car dealership

Warren

They certainly do. I know they're getting ready for Genesis-specific dealerships. That's good news. Most Hyundai dealerships are probably currently located in non-luxury areas as they have historically sold economy cars. Genesis is a "slow launch". Unique. Things are going to work differently with this process...

 

[Mark_888]

Currently, Genesis is only offered to existing Hyundai dealerships. All Hyundai dealerships can sell the G80, while you have meet certain criteria to sell the G90.

Yes, I understand that. But Genesis Motors said they want to accelerate the transition to standalone Genesis dealerships. I mentioned that current Hyundai dealerships probably get first crack at getting a brand new standalone Genesis dealership, but what if there are not enough existing Hyundai dealer wants to fork over the money for that, especially since the economics of selling Genesis vehicles is dicey at the moment without any SUV or CUV vehicles.

 

[BARRYW]

There is one in Stuart, Fl, where I spend my winters. It is "Wallace Genesis". In fact when I return in late October I will be getting my G80 serviced at that location.

 

[Sal Collaziano]

There is one in Stuart, Fl, where I spend my winters. It is "Wallace Genesis". In fact when I return in late October I will be getting my G80 serviced at that location.

That's pretty cool...

https://www.wallacegenesis.com/

Now I hope these Genesis-specific dealerships hire the right people for customer service. I imagine they probably do... This gives me an idea. I'm going to create a topic in the main Genesis Motors discussion area to list Genesis-Specific dealerships...

https://genesisowners.com/hyundai-g...lay.php?104-Genesis-Motors-General-Discussion

 

[GarnetTy1473]

There is one in Stuart, Fl, where I spend my winters. It is "Wallace Genesis". In fact when I return in late October I will be getting my G80 serviced at that location.

Is this it's own standalone building for Genesis? According to their website, it's located at the Hyundai store, and the address it the same.

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[Sal Collaziano]

Is this it's own standalone building for Genesis? According to their website, it's located at the Hyundai store, and the address it the same.

Well look at that. The same exact website is done for my local Hyundai dealer in West Palm Beach:
http://www.wpbgenesis.com/

It's not a Genesis-specific dealership...

 

[pops]

Moving slow but moving. They are doing this in my area too.

 

[Mcc]

Well look at that. The same exact website is done for my local Hyundai dealer in West Palm Beach:
http://www.wpbgenesis.com/

It's not a Genesis dealership...

They say they have 74 Genesis in inventory and they are not a dealership?

 

[Sal Collaziano]

They say they have 74 Genesis in inventory and they are not a dealership?

I apologize, I meant not a Genesis-specific dealership. I will correct that in my post to avoid confusion...

 

[Mark_888]

I apologize, I meant not a Genesis-specific dealership. I will correct that in my post to avoid confusion...

Another way to say it is "a stand-alone Genesis dealership" completely separate from Hyundai dealership. Like a stand-alone Lincoln dealership (that does not sell Fords also).

 

[Sal Collaziano]

Another way to say it is "a stand-alone Genesis dealership" completely separate from Hyundai dealership. Like a stand-alone Lincoln dealership (that does not sell Fords also).

Yes, that makes more sense.

 

[PMCErnie]

In my humble opinion, it was a big mistake to claim that they are setting up standalone dealerships when very little seems to be happening. They should have stuck to the Ford-Lincoln model till circa 2020, at minimum. By then they may have some real product variety in the Genesis showrooms. Just consider how many Hyundai owners get converted to a Genesis when they take the old Hyundai in for service. In a typical situation, the old man spots a posh Genesis, Equus or G90 while waiting for his Hyundai to be serviced. What's the logic in separating the two brands at this point? Correct, there is none.

 

[Sal Collaziano]

True. It worked for Lincoln/Mercury many years until Ford products recently went upscale.

In my humble opinion, it was a big mistake to claim that they are setting up standalone dealerships when very little seems to be happening. They should have stuck to the Ford-Lincoln model till circa 2020, at minimum. By then they may have some real product variety in the Genesis showrooms. Just consider how many Hyundai owners get converted to a Genesis when they take the old Hyundai in for service. In a typical situation, the old man spots a posh Genesis, Equus or G90 while waiting for his Hyundai to be serviced. What's the logic in separating the two brands at this point? Correct, there is none.

 

[turnne]

Yes

Like Toyota created when they rolled out the Lexus brand
Separate everything...and much upgraded over what you would see at a Toyota dealership

I get the business side of things and having to build an expensive building in a higher cost area of town to be near the clientele you want to attract
I still say they are going to need some small to mid size cross overs...like Lexus is selling the heck out of......to get the Genesis cars out of the Hyundai dealership


Warren

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In my humble opinion, it was a big mistake to claim that they are setting up standalone dealerships when very little seems to be happening. They should have stuck to the Ford-Lincoln model till circa 2020, at minimum. By then they may have some real product variety in the Genesis showrooms. Just consider how many Hyundai owners get converted to a Genesis when they take the old Hyundai in for service. In a typical situation, the old man spots a posh Genesis, Equus or G90 while waiting for his Hyundai to be serviced. What's the logic in separating the two brands at this point? Correct, there is none.

I agree that they should not have claimed they were going to set up independent dealerships when clearly it wasn't going to happen
But..I will say it again....that is a business decision and unless they are going to highly subsidize some dealers they cant build structures on the amount of genesis vehicles being sold right now

I do disagree with the cars in the same showroom point though. I think buyers in the United States who buy luxury cars want to walk into a luxury dealership and be treated a certain way...not walk in a place in "so-so" part of town , as some Hyundai dealers are, and have to walk through a bunch of $99 a month banners to get in the door of the dealership

Think how Toyota spun their Lexus brand in the United States and gave their buyers the total experience right at the inception of the brand

Warren

 

[Sal Collaziano]

When all is said and done, Hyundai needs to separate things out and make Genesis-specific dealerships. They need to get at least an SUV/CUV or two ready for production before that endeavor becomes feasible. In the meantime, they can sell cars to the people who are willing to buy them. Remember, people buy $100,000+ Corvette ZR1s parked right next to the $13,000 Chevy Spark.