G70 US Availability?

[CoconutRob]

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?

None, I rather have it like Canada

 

[COToad]

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?

In my market, we average about 5 of the competing luxury brand dealers, BMW, Audi, MB, Lexus, etc. It is hard to know what Genesis expects for volume once they have all 6 models going, but I think it would be a mistake to have more than 3 to start.

 

[Beefer]

In my market, we average about 5 of the competing luxury brand dealers, BMW, Audi, MB, Lexus, etc. It is hard to know what Genesis expects for volume once they have all 6 models going, but I think it would be a mistake to have more than 3 to start.

As an example...Richmond, VA...not the largest city but not small either. 1 BMW, Audi, MB, Lexus, Infiniti, Porsche each. You start getting into multiple dealers for the non-lux brands...american brands, Honda, Toyota, etc.

A solid 45 min drive to get to another location for the lux brands. So Charlottesville, Williamsburg, etc.

Also...we are forgetting the Genesis experience. You do NOT have to go to a dealer. Test drives, purchases and service...they come to you (if you choose to take them up on it I suppose).

 

[EdP]

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).

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.

It will be interesting to see how it shakes out in a few years. I don't think 100 is enough but 400 may not give each enough sales to remain. Take a state like Florida that sells a lot of Genesis and is a long state in miles. I can see 4 dealers there easily. I can also see a long drive to a dealer if you live in North Dakota or Wyoming. In places like that, a Hyundai dealer with a separate showroom is probably a good idea.

My guess is, if they start with 400, in three years there will be 300. Of the 300, about 250 will be the originals, the other 50 will be replacements for some of the dropouts.

The G70 will change the demographics of Genesis buyers though. That will help the volume quite a bit.

 

[danygenesis]

It will be interesting to see how it shakes out in a few years. I don't think 100 is enough but 400 may not give each enough sales to remain. Take a state like Florida that sells a lot of Genesis and is a long state in miles. I can see 4 dealers there easily. I can also see a long drive to a dealer if you live in North Dakota or Wyoming. In places like that, a Hyundai dealer with a separate showroom is probably a good idea.

My guess is, if they start with 400, in three years there will be 300. Of the 300, about 250 will be the originals, the other 50 will be replacements for some of the dropouts.

The G70 will change the demographics of Genesis buyers though. That will help the volume quite a bit.

4 dealers in Florida is crazy low. I live in Miami and right now I have 7 Genesis (Hyundai dealers selling Genesis) at 25 miles radius from my house.
I have 5 Lexus dealers and 6 Infiniti deales in the same radius.

 

[EdP]

4 dealers in Florida is crazy low. I live in Miami and right now I have 7 Genesis (Hyundai dealers selling Genesis) at 25 miles radius from my house.
I have 5 Lexus dealers and 6 Infiniti deales in the same radius.

That is a heavy concentration of lux dealers but if they sell, good for them. That 7 will surely condense. I'm just thinking of the geography of the state. Long stretch from Miami to Jacksonville so you need some coverage there, then you still need the west coast.

Thinking back to the original plan of 100, many places would be a great distance between dealers. OTOH, since there is no Genesis pickup, there is probably little demand in Wyoming.

 

[BrainDoc]

I feel like this thread has gone off topic.

 

[devellis]

I agree, there are a lot of assumptions being made based on pure conjecture. Exactly what date is “from the get-go” and exactly when is “earlier on”. Folks are making assumptions that are just as bad as those they are chastising Genesis for making.

Well, not pure conjecture.

Genesis, at least through its discussions with members of the press, did suggest that the car would be released at several dates prior to its summer release. Back in April, the word was that the North American release date would be in Spring of 2018. Yes, in retrospect it's possible to say that the Canadian release met that timeline. but "North American" sure sounded like it included the US and I don't think the lack of further clarification back then was an accident. The assumption that the US would see it then wasn't an unreasonable assumption given the announcements Genesis was putting out. Did they really think anyone would understand North America to mean only Canada?

As for the existence of laws regarding how long it takes to get new brands approved, that's been the state of things for decades. As an article in the Iowa Law Review (Tesla, Dealer Franchise Laws, and the Politics of Crony Capitalism, 2016) states,

"Today, such laws [statutes governing automotive franchise relations] are on the books in all 50
states. Their terms vary, but they commonly include prohibitions on forcing
dealers to accept unwanted cars, protections against termination of franchise
agreements, and restrictions on granting additional franchises in a franchised
dealer's geographic market area." [Emphasis added]

Nothing new here. As for the tensions that arise when franchisors seek to terminate dealerships, again, nothing new. Here's a paper, titled, State Franchise Laws, Dealer Terminations, and the Auto Crisis, from the Journal of Economic Perspectives (2010) that lays out some of the tensions that exist between manufacturers and dealerships:

https://www.google.com/url?sa=t&rct...toCrisis.pdf&usg=AOvVaw1AxqUk7s5K-n-hozhVazWv

A look at the preceding article makes it quite clear that dealerships have enjoyed a long span of legislative protection and a decision to eliminate dealerships so as to benefit the manufacturer wouldn't be an easy feat to accomplish.

As to what they did or didn't do or talk about, we don't really know and that would be speculation. but what we do know is that the discussions that took place weren't able to produce a speedy resolution. And either they didn't care about reaching a speedy resolution or they didn't anticipate the steps necessary to avoid one and take the required actions. Those aren't speculations.

I'm really not trying to beat up on Genesis but I think it's fair to state that they didn't handle this roll-out well. The automotive press have made the same observation.

In April, Automotive News said,

"The time in between will have been a bumpy, tortuous ride for Hyundai dealers, thanks to a strategy they have called indecisive at best and maddeningly muddled at worst and despite well-received products that can reasonably claim to compete with the German and Japanese giants.

"Last year, Genesis leaders jolted the Hyundai network by announcing a retail strategy that would cut loose the vast majority of Hyundai dealers and demand separate buildings to handle all operations for the luxury line. The about-face has angered dealers who spent years methodically building up the once-paradoxical notion of Korean luxury vehicles, only to find themselves out in the cold now, while also keeping the brand in limbo as it prepares to launch a critical vehicle" [Emphasis added]

In May, Automotive News said, in an article titled The Long and Painful Birth of Genesis:

"But the birth of Genesis is in some ways as chaotic as it is rapid. The mixed signals on hammering out an independent U.S. retail channel underscored the pitfalls of speed. In January, Genesis announced it would launch a separate network of about 100 stores in 48 cities. By May, it had changed course, saying it would offer franchise agreements to all Hyundai dealers." [Emphasis added]

To me, all this adds up to a foreseeable set of hurdles. No, I don't know the content of the internal conversations that took place at Genesis. Claiming I did would certainly cross into speculation. But I do know that they at least dangled the prospect of a Spring release, ran into a set of angry-dealer issues whose impact they apparently hadn't anticipated, and pushed the release of the car from Spring to Autumn -- a time in which they will be sharing buyers' attentions with a lot of new releases from competitors. I'm sure the people at Genesis are all very nice. I'm sure the car is very nice. I wish the company well. But I'm also pretty confident that the G70 rollout won't ever be used as a shining example for how a new car model should be introduced in the US.

 

[dengen]

Also...we are forgetting the Genesis experience. You do NOT have to go to a dealer. Test drives, purchases and service...they come to you (if you choose to take them up on it I suppose).

For the first 3 years, then your "experience" will include a lot of unnecessary driving to the only dealer ship 4 hours away.

They are still freaking this up.

 

[BrainDoc]

For the first 3 years, then your "experience" will include a lot of unnecessary driving to the only dealer ship 4 hours away.

They are still f$%king this up.

They should match the Canadian or middle eastern warranty.

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[Scrappy]

Is today the day for any new information about the G70?

 

[Glaz]

Is today the day for any new information about the G70?

Well it’s 1 pm here on the east coast and usually that is when automakers announce pricing details. It doesn’t seem like today they’ll announce anything. It’s either tomorrow or Friday.

 

[JayceM]

GENESIS announces Pricing starting at $34,900 | Markets Insider

I think we've got it!

 

[Glaz]

GENESIS announces Pricing starting at $34,900 | Markets Insider

I think we've got it!

Ladies and Gentlemen... we got’em.

 

[Beefer]

Wow...$51.5k for the 3.3T Sport. F’ing brilliant!!!!!

Yes!!!!

 

[Glaz]

Wow...$51.5k for the 3.3T Sport. F’ing brilliant!!!!!

Yes!!!!

Good pricing but I just think it’s funny that for $4k more you can get the G80 Sport. Good pricing tho.

 

[JayceM]

Wow...$51.5k for the 3.3T Sport. F’ing brilliant!!!!!

Yes!!!!

Hell yeah. I started another thread for pricing so we can now continue to speculate as to when it will be available in certain states and such.

 

[mikemu30]

GENESIS announces Pricing starting at $34,900 | Markets Insider

I think we've got it!

They are making this car way too complicated with so many different versions. And can't even get one into showrooms. Ironic for sure.

 

[50jae]

Holy moly the base 3.3T is 43k! What a steal at that price compared to what you get with the germans for a stripped out performance model.

If I can lease the awd version for under 500/month no down, I will be the first owner in my area

 

[JayceM]

They are making this car way too complicated with so many different versions. And can't even get one into showrooms. Ironic for sure.

It's probably easier to do this than have it where you can add packages and such. You just pick a trim based on what you want. Only thing you pick then is AWD or no.