Genesis Car Dealerships (Freestanding)

[turnne]

That would be the laws that prevented them from opening Genesis dealerships.

Hyundai took a different path than Toyota. They sold the Genesis model by Hyundai dealers and wanted to shift to stand alones. They could not do that. Toyota started with the Lexus brand from the start.

Easy to be critical, but neither of us was in the boardroom meetings

Please cite the specific laws that prevented them from opening Genesis dealerships?
Otherwise you are speculating

I realize Hyundai took a different path...clearly not the best one based on the outcome we are at today

Yes..Toyota invested heavily, it was a huge risk that paid off very well from the very start

I can imagine that Toyota did their due diligence and made the decision..and probably was advised as well...that what they did was the only way to enter the US market due to the way buyers bought luxury vehicles.

To your point, business leaders make the wrong decisions sometimes and it typically costs them dearly

Lack of free-standing dealers and very little exposure, relatively speaking, in several luxury markets

I was in the Dallas area this week ..where I grew up. It is a huge luxury market with 5-6 ea BMW/Mercedes/Lexus dealers
According to their statements, there are dealers there that have led the country in Lexus and BMW sales
Genesis has 3 dealers and 2 of them are not close to wealthy areas of the Dallas.

It seems like luxury cars dealers and luxury retail are typically close in proximity to the people that are their core clientele

Yes, that certainly saved them costs with cheaper real estate, but I dont think that was a good move


Warren

 

[EdP]

Please cite the specific laws that prevented them from opening Genesis dealerships?
Otherwise you are speculating

You've been on this forum for 10 years and never saw the posts about it?

Genesis Motors' efforts to separate its dealer network from Hyundai in the U.S. have been largely shaped by state franchise laws, which generally protect existing dealers from forced termination or unreasonable facility upgrades. After initially attempting to limit the number of dealers, Genesis shifted to offering franchises to existing Hyundai dealers, requiring them to build separate, standalone facilities to comply with brand standards, a move that faced legal hurdles regarding dealer rights

Genesis Motor America faces several lawsuits from dealers regarding franchise rights, unfair competition, and warranty reimbursement, notably a $16 million verdict upholding a Florida dealer's rights. Claims allege improper pressure to invest in separate facilities, blocked sales, and underpayment for service work, with some dealers accusing Hyundai of plotting to eliminate existing franchises

 

[turnne]

You've been on this forum for 10 years and never saw the posts about it?

Genesis Motors' efforts to separate its dealer network from Hyundai in the U.S. have been largely shaped by state franchise laws, which generally protect existing dealers from forced termination or unreasonable facility upgrades. After initially attempting to limit the number of dealers, Genesis shifted to offering franchises to existing Hyundai dealers, requiring them to build separate, standalone facilities to comply with brand standards, a move that faced legal hurdles regarding dealer rights

Genesis Motor America faces several lawsuits from dealers regarding franchise rights, unfair competition, and warranty reimbursement, notably a $16 million verdict upholding a Florida dealer's rights. Claims allege improper pressure to invest in separate facilities, blocked sales, and underpayment for service work, with some dealers accusing Hyundai of plotting to eliminate existing franchises

What is the name of your source for this information?

There is actually more to this story that is more recent...and from what I understand from this dealer who I patronized when I owned the Equus

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Hyundai tried to force them to open a free standing dealer and they declined....therefore they no longer have the Genesis franchise

But this seems to be looking at something else than what I was talking about

I meant free standing dealers from the start of selling Genesis vehicles, more so than what is happening today

if you look back at the posts I made back then in regards to the way they started the brand I think I predicted correctly where things are today

Warren

 

[Jhon]

Probably more in the contracts than the lawa.

 

[Mcc]

Probably more in the contracts than the lawa.

No, it IS actually in the laws regarding franchise protections of many states. Dealers have leverage over the legislatures. See below

———————————————————-

The Genesis Sales and Service Agreement is not clear on whether a separate facility will be required for the Genesis franchise but what is clear is that dealers will be required to provide a laundry list of Genesis-specific personnel and services in order to receive the franchise. Those items include exclusive sales and service personnel, a dedicated General Brand Manager, a separate data management system, dedicated service bays, signage and a service rental fleet.

The separation of the Genesis franchise as set out in the proposed Agreement conflicts with many state motor vehicle franchise laws. Some states prohibit the separation altogether as the Genesis product has been manufactured and distributed by HMA and, as such, gives Hyundai dealers a continuing right to receive the Genesis product within their Hyundai franchise. Simply announcing that certain vehicles will now be a new brand does not allow HMA to circumvent these franchise protections.

From 2018 Should Hyundai Dealers Accept the New Genesis Franchise Offer? | Digital Dealer

 

[srobak]

My lease return is in September so I do not care if its gets serviced again. When service is due I will contact Dublin and if they want to come out great, if not it’s a Genesis problem.

If you do not have it serviced as scheduled throughout the lease they will make it a you problem when you attempt to turn it in.

I might remind you that regularly scheduled maintenance is not required to be performed at a Genesis dealer.

 

[skiingj]

If you do not have it serviced as scheduled throughout the lease they will make it a you problem when you attempt to turn it in.

I might remind you that regularly scheduled maintenance is not required to be performed at a Genesis dealer.

I can see your point but is it reasonable to make you drive hundreds of miles if a dealership closes, I say no, brand/lawyers say yes. Moreover, both the 30k & 40k do not appear to have anything you could get in trouble with. In a couple months, I will see if Dublin will valet the 112 miles one-way like they offered before. If not I will take my chances and return it with 40-45k.

Edit: I have 33k miles and its returns in Sept.