G70 US Availability?

[Pepper]

Most Hyundai dealers only invested in training of certain staff.

The ones that sold the Equus/G90 (about 350 of them) spend maybe $80-100k on top of that for a separated showroom (and a few also doing a Genesis exclusive customer lounge).

Hyundai has offered compensation packages in excess of $4 million (most of it for lost future sales) for the high volume dealerships and many have turned it down, wanting to go ahead w/ Genesis.

This post doesn't add up. I would be surprised to see most dealerships going ahead with Genesis. From everything that I have seen, most dealerships are dumping Genesis and it will be hard to access a local dealership. Nobody knows much until Genesis finalizes their dealership network. Hope for more dealerships not less.

 

[EdP]

This post doesn't add up. I would be surprised to see most dealerships going ahead with Genesis. From everything that I have seen, most dealerships are dumping Genesis and it will be hard to access a local dealership. Nobody knows much until Genesis finalizes their dealership network. Hope for more dealerships not less.

I don't think the question is more or less, but the right number. A few years back the Big 3 pared the number of dealers too. There has always been more Chevy dealers than Caddy dealers. There should be more Hyundai dealers than Genesis.

Limiting the number of dealers helps them to be more profitable, have better trained sales and service people and give the customer a better experience. Is it a big deal if you have to travel an extra twenty miles once or twice to by the car? With concierge service you may never have to return.

As the brand takes off there may be more dealers, but you have to sell enough cars to support them.

 

[Pepper]

I don't think the question is more or less, but the right number. A few years back the Big 3 pared the number of dealers too. There has always been more Chevy dealers than Caddy dealers. There should be more Hyundai dealers than Genesis.

Limiting the number of dealers helps them to be more profitable, have better trained sales and service people and give the customer a better experience. Is it a big deal if you have to travel an extra twenty miles once or twice to by the car? With concierge service you may never have to return.

As the brand takes off there may be more dealers, but you have to sell enough cars to support them.

Twenty miles around where I live can be a few hours which would mean never owning a Genesis. Pittsburgh has one Mini dealership and in my end of town not many Mini Cooper's to be seen . Lexus, Infiniti and Acura all have three or four dealerships locally with a good display of ownership.

 

[Ed Okin]

I don't think the question is more or less, but the right number. A few years back the Big 3 pared the number of dealers too. There has always been more Chevy dealers than Caddy dealers. There should be more Hyundai dealers than Genesis.

Limiting the number of dealers helps them to be more profitable, have better trained sales and service people and give the customer a better experience. Is it a big deal if you have to travel an extra twenty miles once or twice to by the car? With concierge service you may never have to return.

As the brand takes off there may be more dealers, but you have to sell enough cars to support them.

Good point Ed. I have bought all my Hyundais from one dealer 30-40 minutes away because the dealer 5 minutes from me never seems to have much inventory from which to choose.

 

[Pepper]

Good point Ed. I have bought all my Hyundais from one dealer 30-40 minutes away because the dealer 5 minutes from me never seems to have much inventory from which to choose.

More dealerships is better for the consumer.

 

[COToad]

More dealerships is better for the consumer.

I'm not so sure. Too many and each dealership would have such low volume they would all have to push the price up to make more money per car. They also can't make money if there are so many they don't have a healthy service department volume. Service pays the bills in most dealerships.

 

[EdP]

More dealerships is better for the consumer.

Only if they are quality and offer a good sales and service experience. With the present setup there are a lot of dealers but many complaints how they handle customers. They also have to sell enough cars to make a good profit.

As I said the RIGHT number.

 

[Pepper]

I'm not so sure. Too many and each dealership would have such low volume they would all have to push the price up to make more money per car. They also can't make money if there are so many they don't have a healthy service department volume. Service pays the bills in most dealerships.

Would you rather have one dealership or three to choose from, which is the most realistic numbers that most metro areas are going to see?

 

[EdP]

Twenty miles around where I live can be a few hours which would mean never owning a Genesis. Pittsburgh has one Mini dealership and in my end of town not many Mini Cooper's to be seen . Lexus, Infiniti and Acura all have three or four dealerships locally with a good display of ownership.

And your conclusion is. . . .
There are not many Minis around anywhere. If they put ten more dealers in your area would they sell 10X more? There are not many Fiat, Ferrari, or Bentley dealers either. There is not enough demand for them.

 

[EdP]

Would you rather have one dealership or three to choose from, which is the most realistic numbers that most metro areas are going to see?

One good one rather than three crappy ones that don't sell enough cars to properly care for me as a customer.

I have Hyundai dealers 15 miles north, 15 miles south, 18 miles west, 45 miles south of me. I bought mine from the 45 miles one because he offers the best deal and service. Two of the closer ones I'd not take a Radio Flyer wagon for a grease job.

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[Pepper]

And your conclusion is. . . .
There are not many Minis around anywhere. If they put ten more dealers in your area would they sell 10X more? There are not many Fiat, Ferrari, or Bentley dealers either. There is not enough demand for them.

I want to increase my chances of owning a G70. The Italian sales are exteremly small. One Genesis dealer in a large metro area is detrimental for good growth for Genesis. I would have bought a Mini or an Alfa if the dealership were not so far away. I am sure many of the members of this post would travel many hours to the dealership but there are many that won't.

 

[Pepper]

One good one rather than three crappy ones that don't sell enough cars to properly care for me as a customer.

I have Hyundai dealers 15 miles north, 15 miles south, 18 miles west, 45 miles south of me. I bought mine from the 45 miles one because he offers the best deal and service. Two of the closer ones I'd not take a Radio Flyer wagon for a grease job.

Edp, what are the chances of you having one good dealership and three bad dealerships if you only realistically have one dealership?

 

[EdP]

I want to increase my chances of owning a G70. The Italian sales are exteremly small. One Genesis dealer in a large metro area is detrimental for good growth for Genesis. I would have bought a Mini or an Alfa if the dealership were not so far away. I am sure many of the members of this post would travel many hours to the dealership but there are many that won't.

Its a numbers game. Ask the marketing department of any car brand, supermarket, or chain restaurant. They put one store for X amount of people. They have done studies than show you need a certain amount of people in a given radius to support it. In the case of Genesis, they also look at the demographics. If the typical income of a town is $25,000 a year, they are not getting a dealer. You won't find Lexus there either.

 

[EdP]

Edp, what are the chances of you having one good dealership and three bad dealerships if you only realistically have one dealership?

Better chance the one is good as it is more easily monitored. Better good if he is selling enough cars to make a profit, stock the pats, hire trained people. Keep in mind, Genesis is not building the dealership, it is an individual putting up his money. He is not going to invest in a building, franchise and all the expenses unless he figures there is a return.

 

[Pepper]

Its a numbers game. Ask the marketing department of any car brand, supermarket, or chain restaurant. They put one store for X amount of people. They have done studies than show you need a certain amount of people in a given radius to support it. In the case of Genesis, they also look at the demographics. If the typical income of a town is $25,000 a year, they are not getting a dealer. You won't find Lexus there either.

There are many more variables and outcomes than what you state. I am trying to buy a Genesis and my chances of buying one are greater if there are more than less dealerships in my area. If there is only one dealership I would not have a choice of who to buy from. I would need to buy and service my new car purchase before I could have a reasonable opinion of the dealership experience.

 

[trespinosranch]

How do I unsubscribe from this thread? I used to know how, but my old age has caught up to me. I can't wait for a US G70, but I also can't wait to stop getting email alerts every 2 minutes of a new post.
UPDATE: I figured it out. Thanks.

 

[Pepper]

How do I unsubscribe from this thread? I used to know how, but my old age has caught up to me. I can't wait for a US G70, but I also can't wait to stop getting email alerts every 2 minutes of a new post.

Sorry, I got carried away. Off to bed.

 

[EdP]

How do I unsubscribe from this thread? I used to know how, but my old age has caught up to me. I can't wait for a US G70, but I also can't wait to stop getting email alerts every 2 minutes of a new post.
UPDATE: I figured it out. Thanks.

You can just turn off notifications

 

[EdP]

There are many more variables and outcomes than what you state. I am trying to buy a Genesis and my chances of buying one are greater if there are more than less dealerships in my area. If there is only one dealership I would not have a choice of who to buy from. I would need to buy and service my new car purchase before I could have a reasonable opinion of the dealership experience.

You always have a choice, depending on how far you want to travel.

You are going to buy only one car so you won't have any more dealer experience if there are three dealers unless you buy a car from each.

As you say, there are more variables and outcomes, but you still have to justify potential sales to justify added dealers. If you can show Genesis management that your area of town can support a dealership they may get started having one opened there. To open a dealer it has to be in the million dollar range. Even a small dealer needs employees and can have a weekly payroll of $10k or more. How many cars do you have to sell to turn the lights on?

No matter how much you want a dealer nearby, no matter how much you think it will sell more cars, it is still a numbers game to justufy it.

 

[YEH]

This post doesn't add up. I would be surprised to see most dealerships going ahead with Genesis. From everything that I have seen, most dealerships are dumping Genesis and it will be hard to access a local dealership. Nobody knows much until Genesis finalizes their dealership network. Hope for more dealerships not less.

Under the initial plan, Hyundai only wanted around 100 Genesis dealerships (which I thought was too low), of which only around 80-85 would come from dealer groups owning Hyundai stores (the rest would be dealer groups new to Hyundai, well, Genesis).

But aside from the regulatory/licensing issues, there was basically a revolt from the Hyundai dealerships - both of which led to the months of delay as Genesis abandoned their initial plan and went back to the drawing board, opening up the possibility of obtaining a Genesis franchise to every dealer group owning a Hyundai dealership.

Genesis USA initially tried to keep the # down by having pretty stringent build-out requirement for stand-alone Genesis stores, but somehow along the way, those seemingly were abandoned as well and Genesis ended up w/ a lot more dealer groups interested in proceeding ahead w/ Genesis (about 400).

That # is far more than what Genesis sees as optimal and they are hoping some drop out.

In the Pittsburgh area four listed Genesis dealers said they won't be selling the Genesis brand. One said only one dealer will be in the Pittsburgh area and one said they are still waiting for Genesis to make a decision.

For a mid-size city like Pittsburgh, 2 Genesis stores would suffice (at least at the start).

Having just 1 would be tough as would be a decent drive for buyers from the Southside/Southern burbs to hit a dealership located in the Northern burbs (likely where a sole Genesis dealership would be located as the wealthier burbs are on the North side of the Allegheny).

Twenty miles around where I live can be a few hours which would mean never owning a Genesis. Pittsburgh has one Mini dealership and in my end of town not many Mini Cooper's to be seen . Lexus, Infiniti and Acura all have three or four dealerships locally with a good display of ownership.

Can't force dealer groups to invest.

Even if there is only 1 at the start, if sales are good, other dealer groups would be interested in opening their own Genesis store.

Under the old 100 dealership network plan, a lot of states (including a state like South Carolina) wouldn't be getting any Genesis dealerships.