G70 US Availability?

[EdP]

It sounds like the G70, being a 2019 model, will still only be available through the newly-minted, exclusively-Genesis dealerships, while 2018 G80s and G90s will also be available through certain existing Hyundai dealers. Is that how others understood this? Even if that's the case, it seems like a positive move if all Hyundai dealers approved for Genesis sales can provide service.

It does sound that way. Keep in mind, this is from Automotive News. Until we see actual contracts/agreements/marketing plan we don't really know.. Everything is open to misinterpretation and you can be sure it will be the longer the thread goes on.

 

[joneillnj]

So I think Genesis is the first "luxury" brand to truly separate from Hyundai world wide right from the start.

??? The Genesis G80, G80 Sport and G90 have been sold through Hyundai locations (same showrooms, buldings, service facilities, etc.) since 2017 in NA - while Genesis as a Brand (not a model) has existed in Korea since the G1? So how is that Genesis separating from the Hyundai Brand world wide from the start??

 

[joneillnj]

"Genesis confirmed that even under the new plan, all the new dealers will be required to have separate stores and service facilities just for Genesis."

So I'm not so sure this really changes things that much. All this says is any current Genesis dealer that wants to continue to sell Genesis cars still has to build a new seperate dealership. How many of these guys really wants to spend that kind of money to sell (today) 3 models? I still see G80's and 90's sitting for months on dealer lots.

"Under the plan, this person said, all Hyundai dealerships will be eligible to apply to become Genesis dealers. The roughly 350 elite-level dealerships that carried both the G80 and G90 sedans can continue to sell those products, or take settlement money that was previously offered and move on." That is way different than only 100 locations being allowed to sell, so it changes things a lot (likely in a good way for buyers) - but, geez, Genesis management is coming off as real bozos with their ever changing "strategy"...

 

[GV70GUY]

On the surface it does certainly sounds good that "potentially" there could be more than the original 100 dealers but just because you open the door doesn't mean 350 dealers are now going to suddenly rush out and start building a new dealership and hire staff that's a big investment. In fact I just spoke to my dealership who today has a separate showroom for Genesis if they are going to build a Genesis dealership and one comment they said was they wouldn't know where to put it, land is getting real tough to find here. It's kind of a chicken and egg thing, Genesis wants the separation but dealers need enough models and volume of sales to make it worth while.

 

[Beefer]

??? The Genesis G80, G80 Sport and G90 have been sold through Hyundai locations (same showrooms, buldings, service facilities, etc.) since 2017 in NA - while Genesis as a Brand (not a model) has existed in Korea since the G1? So how is that Genesis separating from the Hyundai Brand world wide from the start??

You didn't read what I wrote correctly. I am talking about the Genesis brand. The Genesis brand is becoming available world wide. The G80 and G90 are not labeled under the Hyundai brand in other parts of the world. Not talking about shared dealerships, etc.

 

[Mark_888]

Well...I just found out what it is !!! Looks like all Hyundai dealers will be able to sell the Genesis brand. Wow.

But...2019 models (G70, etc) will only be wholesaled to newly franchised Genesis stores.

So I can only assume that the G70 will become available MUCH sooner. Perhaps end of June like they said waaaay back? I'm very happy.

Fully verbiage below...

Genesis changes its mind on retail network -- again

It was always the plan that existing Hyundai dealers (who have been selling Genesis G80 and G90) could continue to sell the Genesis brand, so long as it was not a 2019+ model. The plan was to restrict the 2019+ models to the new 100 Genesis dealers.

After reading the article in the link above, it now "appears" to me that the thing that has changed is the limit on 100 Genesis dealers has been relaxed, even for 2019+ model year. I assume they had to relax the limit in order to get approval needed from the existing Hyundai dealers.

According to YEH, Genesis Motors was trying get agreement (I forgot the percentage of dealers who had to agree to the plan) by paying several million dollars to dealers who did not get one of the 100 dealerships. But I guess that even that was not good enough for many dealers, and Genesis has abandoned the 100 limit on Genesis dealers starting with the 2019 model year.

But I assume that some existing Hyundai dealers who are currently selling the G80, will not pursue building a separate Genesis dealership facility. One Hyundai dealer estimated that it takes a $10 million investment for a business to build and start a dealership.

But I don't claim to know for sure what will happen, because the article linked above is not exactly clear.

 

[Mcc]

It was always the plan that existing Hyundai dealers (who have been selling Genesis G80 and G90) could continue to sell the Genesis brand, so long as it was not a 2019+ model. The plan was to restrict the 2019+ models to the new 100 Genesis dealers.

After reading the article in the link above, it now "appears" to me that the thing that has changed is the limit on 100 Genesis dealers has been relaxed, even for 2019+ model year. I assume they had to relax the limit in order to get approval needed from the existing Hyundai dealers.

According to YEH, Genesis Motors was trying get agreement (I forgot the percentage of dealers who had to agree to the plan) by paying several million dollars to dealers who did not get one of the 100 dealerships. But I guess that even that was not good enough for many dealers, and Genesis has abandoned the 100 limit on Genesis dealers starting with the 2019 model year.

But I assume that some existing Hyundai dealers who are currently selling the G80, will not pursue building a separate Genesis dealership facility. One Hyundai dealer estimated that it takes a $10 million investment for a business to build and start a dealership.

But I don't claim to know for sure what will happen, because the article linked above is not exactly clear.

I believe that Mark_888 is correct. I also agree that there are a lot of details that need to be made clearer than what is in the article. Evidently the dealers know and hopefully we will too soon.

 

[Beefer]

Well...I just found out what it is !!! Looks like all Hyundai dealers will be able to sell the Genesis brand. Wow.

But...2019 models (G70, etc) will only be wholesaled to newly franchised Genesis stores.

So I can only assume that the G70 will become available MUCH sooner. Perhaps end of June like they said waaaay back? I'm very happy.

Fully verbiage below...

Genesis changes its mind on retail network -- again

This article is based off the same info...but worded a tad bit differently. Is it any clearer?...I think so...

https://www.carscoops.com/2018/05/u-s-hyundai-dealers-will-able-sell-genesis-models

 

[GV70GUY]

It says "All the Hyundai dealerships that start to sell Genesis will need to have separate stores and service facilities for the more upmarket vehicles." So the key words here are "that start to sell Genesis" so does that mean that any Hyundai dealership that today doesn't sell Genesis cars will have to build a Genesis dealership first before they can start selling them and those Hyundai dealerships that are already selling Genesis cars today do not? Based on this additional comment "Those who already stock Genesis models can continue to do so or take settlement money and stop selling them." I would say that is true.

Which means we will have a mixure of dedicated dealerships and those that sell everything. Which would you buy from......

 

[Beefer]

It says "All the Hyundai dealerships that start to sell Genesis will need to have separate stores and service facilities for the more upmarket vehicles." So the key words here are "that start to sell Genesis" so does that mean that any Hyundai dealership that today doesn't sell Genesis cars will have to build a Genesis dealership first before they can start selling them and those Hyundai dealerships that are already selling Genesis cars today do not? Based on this additional comment "Those who already stock Genesis models can continue to do so or take settlement money and stop selling them." I would say that is true.

Which means we will have a mixure of dedicated dealerships and those that sell everything. Which would you buy from......

My guess is that they need to commit to doing it in the future...and can sell now.

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[devellis]

Still pretty confusing. We'll have to wait to find out exactly how it gets sorted. This whole thing has been a bit of a fiasco and should have been resolved much sooner.

The dealership experience is an important part of ownership in the luxury market and Hyundai will need to work hard to ensure that people walking into one of their dealerships who are looking for a Genesis will have a positive experience. If they have to work their way through a mob of aggressive sales people in cheap, flashy sports jackets before they get to the Genesis staff, that may not help. The more distinct the two separate components can be (like separate entrances at a minimum), I think the better it will work. I see no problem with more and less expensive cars being on the same lot. But I think it's important that there be some separation at the level of both sales and service. For the latter, it may even just be for the service advisors. The same mechanics well may be able to work on both cars. But the customer's interaction with the service advisors will need to be to a higher standard on the Genesis side than is typical of dealerships selling more modestly-priced cars.

 

[Mcc]

Still pretty confusing. We'll have to wait to find out exactly how it gets sorted. This whole thing has been a bit of a fiasco and should have been resolved much sooner.

The dealership experience is an important part of ownership in the luxury market and Hyundai will need to work hard to ensure that people walking into one of their dealerships who are looking for a Genesis will have a positive experience. If they have to work their way through a mob of aggressive sales people in cheap, flashy sports jackets before they get to the Genesis staff, that may not help. The more distinct the two separate components can be (like separate entrances at a minimum), I think the better it will work. I see no problem with more and less expensive cars being on the same lot. But I think it's important that there be some separation at the level of both sales and service. For the latter, it may even just be for the service advisors. The same mechanics well may be able to work on both cars. But the customer's interaction with the service advisors will need to be to a higher standard on the Genesis side than is typical of dealerships selling more modestly-priced cars.

It would have been great if it could have been resolved soon but how would you propose that could have happened? The dealers had their set of demand and Genesis had their vision. Neither side was going to lay down so it took time, negotiations and compromises on both sides. I am still not sure it is finished. I agree with everything you outlined in your second paragraph but the dealers might not. So how do you get there?

 

[devellis]

It would have been great if it could have been resolved soon but how would you propose that could have happened? The dealers had their set of demand and Genesis had their vision. Neither side was going to lay down so it took time, negotiations and compromises on both sides. I am still not sure it is finished. I agree with everything you outlined in your second paragraph but the dealers might not. So how do you get there?

Well, Genesis could (and should) have anticipated that this was going to involve complex negotiations and could (and should) have started the process sooner. As we learned about the planned restriction of dealerships, many of us here recognized that it was going to be a process fraught with controversy and with the potential for animosity between dealerships and corporate. The company should have had similar insight into how challenging this would be. I suspect that they thought they could more-or-less ram a proposal through, only to find that there was a lot more push-back than they expected. To my mind, an awareness of issues of this sort is a crucial part of what defines effective corporate leadership. Large corporations have many components, including R&D, sales, marketing, management, and finance. When a brand-new, high-impact product is being brought to market, all of those components need to be engaged and attuned to what can go wrong. I hope (and expect) that things will end well for Genesis and the G70. But not without there having been bumps in the road that I believe could easily have been foreseen. Instead, I get the sense that Genesis either didn't foresee the push-back they'd get from dealers or (seemingly more likely) had a naive "fingers crossed" attitude regarding its resolution.

A common exercise conducted in many organizational settings (academic, governmental, corporate, etc.) prior to the start of a major new initiative is to ask, "if this endeavor fails, what will have been the reasons?" This is usually done formally, with multiple stake holders providing, in writing, their perspective on why failure might result. Then, those scenarios can be reviewed and analyzed to determine what foreseeable and avoidable obstacles should be addressed. This should happen fairly early in the process and, for a complex system, might well be repeated at key stages. I suspect Genesis USA hasn't been doing anything like this. If they had, I think the dealership issue would have cropped up.

 

[dengen]

The dealership experience is an important part of ownership in the luxury market and Hyundai will need to work hard to ensure that people walking into one of their dealerships who are looking for a Genesis will have a positive experience.

I can only speak to this personally, but I honestly couldn't care less about the dealership experience. My ideal experience would be never having to go in the first place and negotiating entirely via phone and email, having a test drive car brought out, and then using genesis 3 year "come to you" service deal. A+

 

[devellis]

I can only speak to this personally, but I honestly couldn't care less about the dealership experience. My ideal experience would be never having to go in the first place and negotiating entirely via phone and email, having a test drive car brought out, and then using genesis 3 year "come to you" service deal. A+

Well, in a way, that is the dealership experience. When I bought my first Infiniti, that's exactly how things unfolded. I contacted the dealer by email, was given a price quote and information (including vin) about the specific car they were referring to. I then scheduled them to come to my house with that car. I drove the car, decided I wanted it, and completed the paper work in my living room. I got a follow-up call a few days later to make sure I was enjoying the car and the salesman sent me a coupon for a free oil change and gas fill-up, since after driving to my house, the gas tank was no longer absolutely full (but darn near full). When I bought the second Infiniti, I did go to the dealership. The salesman said that, if I was comfortable leaving my car with them, I could take home the Infiniti and live with it for a day or two to decide if I wanted it. I already knew I wanted the car, so did take it home to show my wife and get more time behind the wheel. The next day, I asked what form of payment they wanted, assuming they'd want a bank check. He said a personal check would be fine. When I've needed dealer service, I've been given the choice of waiting if the service would be brief or getting a loaner if I wished to leave and return. The service area is immaculate and shares a glass wall with the waiting area so that you can actually watch them work on your car but from the safety and comfort of the very nice waiting area. Having worked at auto dealerships that didn't always do, once the customer was out of sight, what they claimed they were doing, I like being able to see what's happening to my car. They also wash the car and vacuum the interior as part of every service visit.

So, in both these cases, the "dealership experience" involved more than time spent sitting at a desk in the dealership. In the first instance, I never set foot in the dealership. Both times, the approach was to provide me with the service that best suited my needs. That's what I think of as premium dealership service and what I hope Genesis will be able to provide.

 

[Beefer]

Ok folks...I have new info...and it's good.

Just got off the phone with a manager at my local Genesis dealer. He is aware of all the flip flopping news last week, etc...as he should be

They got a FedEx letter yesterday...not sure if all the dealers did. It was from the president of Genesis USA. There is a TON of cars at port waiting for release in the USA !!!!!!!!!!! Literally...they are waiting for the green light any day. Dealers should start getting allocations any day. So the G70 will be arriving WAY sooner than expected.

He said that they have to be released because they are all sitting there holding up space. There are other S.Korean cars, etc...that come into the same port and they will have no where to put them.

So...all I have for now. USA spec cars built...ready to go...sitting at the port. Hopefully something happens in the next week or two !!!

I might have beer. 5pm somewhere I suppose.

 

[EdP]

Well, in a way, that is the dealership experience. When I bought my first Infiniti, that's exactly how things unfolded. I contacted the dealer by email, was given a price quote and information (including vin) about the specific car they were referring to. I then scheduled them to come to my house with that car. I drove the car, decided I wanted it, and completed the paper work in my living room.

So, in both these cases, the "dealership experience" involved more than time spent sitting at a desk in the dealership. In the first instance, I never set foot in the dealership. Both times, the approach was to provide me with the service that best suited my needs. That's what I think of as premium dealership service and what I hope Genesis will be able to provide.

That is very nice service. Sure makes it easy and pleasant.

Everything has a price. Does a Genesis dealer have the same markup as the Infiniti dealer though? We want the premium dealership service but so far it seems we've not had to pay premium prices. Are we willing to pay an extra $500 or $1000 to have that experience?

As for the car wash, both dealers I used do that even if you just got an oil change on your Accent.

 

[bhead9318]

Ok folks...I have new info...and it's good.

Just got off the phone with a manager at my local Genesis dealer. He is aware of all the flip flopping news last week, etc...as he should be

They got a FedEx letter yesterday...not sure if all the dealers did. It was from the president of Genesis USA. There is a TON of cars at port waiting for release in the USA !!!!!!!!!!! Literally...they are waiting for the green light any day. Dealers should start getting allocations any day. So the G70 will be arriving WAY sooner than expected.

He said that they have to be released because they are all sitting there holding up space. There are other S.Korean cars, etc...that come into the same port and they will have no where to put them.

So...all I have for now. USA spec cars built...ready to go...sitting at the port. Hopefully something happens in the next week or two !!!

I might have beer. 5pm somewhere I suppose.

This is literally the best news the US has heard on this roller coaster ride since the G70 was announced last year.

 

[Beefer]

This is literally the best news the US has heard on this roller coaster ride since the G70 was announced last year.

I just hope it's true. I don't see why he would have made everything up. From mentioning a FedEx letter to cars waiting in port. I actually just got a call from a manager from another Genesis dealer. I couldn't talk since I am on a conference call. But I will call him back shortly...and see if the stories align.

 

[Beefer]

I just hope it's true. I don't see why he would have made everything up. From mentioning a FedEx letter to cars waiting in port. I actually just got a call from a manager from another Genesis dealer. I couldn't talk since I am on a conference call. But I will call him back shortly...and see if the stories align.

Alrighty...just got off the phone with the 2nd manager. All true. He actually just got off the phone himself. Cars are sitting there waiting !!! Not only are they occupying space...but the cost to hold them there is apparently off the charts.

With that said...they would NOT give him a ship date. He dug and dug...they wouldn't give a ship date or any allocation info. But...they did tell him that it will be soon. So not the end of the summer...and definitely not fall...we're talking like a month or so.

Also...he said normally cars take about a month to arrive after allocation. Apparently Genesis will escalate and cut that time in half. So once allocation is established...cars will arrive in 2 weeks.

So that's all for now. I bet we start seeing them in June. He said that all dealers will get one car just for show in the beginning as well...forgot to mention that.

Fingers crossed !!!