Genesis "dealer" profits are higher than Porsche, due to lack of independent showrooms

[turnne]

What a crappy video. They used Hyundai Motor Group's global sales numbers, which include Hyundai/Kia/Genesis- but then used only Hyundai Motor Co's profits, which include only Hyundai and Genesis vehicles. Thus all their calculations were all wrong because they forgot to include Kia's profits.

Funny enough, Motor1 did their own 2021 profit analysis yesterday and turned out a much more accurate result.

Ferrari Was Most Profitable Manufacturer In 2021 By A Wide Margin

New car sales fell in 2021 but automakers are generally making more profit per car, and Ferrari makes over $100,000 on every vehicle it sells.

www.motor1.com

How do you know the original video didnt include Kia's profits?

Also your General Motors numbers seem different ( worse)

GM reports $14.3 billion in 2021 earnings despite COVID-19, chip shortage

GM's final quarter and 2021 results come after its struggle with production last year amid the global chips shortage.

www.freep.com

Warren

 

[Backslack]

How do you know the original video didnt include Kia's profits? Also your General Motors numbers seem different ( worse)

Because they literally took the number from the Hyundai Motor Co. press release. Which doesn't include Kia.

Newsroom | Company - Hyundai Worldwide

Newsroom is the official site for Hyundai Motor Company related news, statements, photos, videos, and more.

www.hyundai.com

Any analysis that commits such a massive omission automatically goes in the trash.

Also, GM's net income was only $10 billion, which means their operating income was even less. Convert that number to Euros and I'm pretty sure it's the same as the Motor1 report.

GM Reports Net Income of $10 Billion for 2021

DETROIT – General Motors Co. reported Tuesday that it closed 2021 with a net profit of $10 billion for the year compared to net income of $6.4 billion during 2020 – an increase of 56%. GM also forecast pretax earnings in 2022 between $13 billion and $15 billion, and net income ranging between...

businessjournaldaily.com

 

[turnne]

Because they literally took the number from the Hyundai Motor Co. press release. Which doesn't include Kia.

Newsroom | Company - Hyundai Worldwide

Newsroom is the official site for Hyundai Motor Company related news, statements, photos, videos, and more.

www.hyundai.com

Any analysis that commits such a massive omission automatically goes in the trash.

Also, GM's net income was only $10 billion, which means their operating income was even less. Convert that number to Euros and I'm pretty sure it's the same as the Motor1 report.

GM Reports Net Income of $10 Billion for 2021

DETROIT – General Motors Co. reported Tuesday that it closed 2021 with a net profit of $10 billion for the year compared to net income of $6.4 billion during 2020 – an increase of 56%. GM also forecast pretax earnings in 2022 between $13 billion and $15 billion, and net income ranging between...

businessjournaldaily.com

I am assuming you meant this data in regards to the Hyundai Press release?

Hyundai Motor vows $7.7 billion investment after record 2021 revenue - KED Global

Hyundai Motor Co. said on Tuesday it will spend a record 9.2 trillion won ($7.7 billion) this year to ramp up facilities for electric cars and other eco-friend

www.kedglobal.com

GMs operating income was $9.32 billion according another report I saw ..which translates to 8.57
Euro

I think I peeled the onion back a little bit on the original numbers
The sales he reported do not include Kia. The Hyundai press release says 117 trillion Korean Won in 2021 sales, which translates into about the $96 billion( US) he reported( at about the 4 minute mark of the video). He is using that number to discuss profitability
It seems the Kia numbers were actually not included because sales of both brands together was more than $96 Billion(converted to USD)

I was curious to see Kia's numbers separated out as well

Kia’s 2021 OP more than doubles with record high revenue - Pulse by Maeil Business News Korea

Kia Corp., South Korea’s second largest carmaker, set new records for both revenue and operating profit last year as robust sales of lucrative models overseas helped offset production disruptions from the global automotive

pulsenews.co.kr

Warren

 

[Backslack]

The sales he reported do not include Kia.

He did include Kia in the sales numbers- he combined the total global 2021 number of cars sold of Hyundai Motor and Kia, but did not add in Kia's profits because the moron didn't know that Hyundai Motor doesn't report Kia's profits.

Thus, it's trash.

 

[turnne]

He did include Kia in the sales numbers- he combined the total global 2021 number of cars sold of Hyundai Motor and Kia, but did not add in Kia's profits because the moron didn't know that Hyundai Motor doesn't report Kia's profits.

Thus, it's trash.

The total sales units included the Kia units
The sales dollars and profitability did not...not sure if it can be assumed that the profit per unit is accurate or not since it not known what sales basis was used for that
Unfortunately, profit per unit is not something that can easily be verified independently

Warren

 

[YEH]

Not sure that it makes sense to compare Porsche...since a good percentage of their sales are for vehicles that are over $100K

You certainly like to pull out "factoids" that are missing important details

Then you use those " factoids" to speculate even further

Some of those brands you mentioned have models that sell, in volume, for twice as much in price( or more) as anything Genesis has

That makes it likely a completely different market and different buyer

But anyway...when( and if) Genesis gains a national free standing dealer network we shall see

Warren

Um, I'm talking about dealership profitability, not automaker profitability.

Dealership profitability is predicates on sales nos. (close for both brands for the 1Q), margins (including ADM; which again, is close for both brands) and overhead costs.

Of course, as an automaker, Porsches profitability will be higher as they sell higher margin vehicles ($100k+), but don't think the dealership makes that much more for a loaded Cayenne sale versus one that is light on the options.

You like to argue so much that you don't even know what the heck you're arguing about - lol

 

[turnne]

As I said be

Um, I'm talking about dealership profitability, not automaker profitability.

Dealership profitability is predicates on sakes nos. (close for both brands for the 1Q, margins (including ADM, which again, is close for both brands) and overhead costs.

Comparing dealership profitability for a business that services primarily a different sector/market and has a completely different business model is comparing apples and oranges

Warren

 

[YEH]

Comparing dealership profitability for a business that services primarily a different sector/market and has a completely different business model is comparing apples and oranges

Warren

Lol!

How are they completely different?

While Porsche is more sport/performance oriented and Genesis right now doesn't have anything to compete with regard to the Boxster/Cayman (low volume) and 911, Genesis competes in the same segment as the Macan, Cayenne and Panamera.

 

[turnne]

Lol!

How are they completely different?

While Porsche is more sport/performance oriented and Genesis right now doesn't have anything to compete with regard to the Boxster/Cayman (low volume) and 911, Genesis competes in the same segment as the Macan, Cayenne and Panamera.

LOL...

Porsche has about 15% of their sales in a vehicle that has a base price of $102K...the 911

Why dont you obtain the demographics of the buyers of each brand...age and household income and see how much the buyers have in common?..

But anyway..like I said before, a completely differently structured businesses and business model

The last Porsche dealership I walked in was a LOT nicer than the Hyundai dealer with an added Genesis showroom ( that holds 3 vehicles ) that I go to now

Warren

 

[YEH]

Of course Genesis doesn't (yet) compete in higher segments (much less performance trims) that Porsche does, but that doesn't mean that the GV70 doesn't compete against the Macan; the Porsche CUVs make up the bulk of Porsche sales today.

Plus, BMW hasn't had a supercar since the M1, but they still are seen as competing against Porsche and Mercedes/AMG despite not having a 911 competitor for decades.

But again, this is about dealer profitability and Porsche dealerships on the whole make more $ selling Macan and Cayenne then they do the few collectible Porsches that they get.

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[MJLx2]

I don't think it's a When (and if) at all. They either do it, or they will fail.
I will not buy another Genesis unless they turn it around and honor the service they suggest they have when you buy.
Who else will be "one and done" if things don't change?

Count me in the “one and done” club. Dealership experiences are definitely not luxury or premium. I think the Genesis corporate folks are missing a critical strategic issue here, word of mouth about the non-luxury and poor dealership / ownership experience becomes very difficult to reverse at some point. They should have learned this lesson as it’s taken years and years as well as a best in industry warranty to amend for the quality issues of Hyundai / Kia cars of the 80’s and 90’s. And, as more Genesis vehicles are sold with at least some subset of those buyers passing along their dealership frustrations the brand begins to become known in the marketplace for having a non-luxury, non-premium ownership experience. Like it or not, car buyers attribute dealership experiences to the brand. Very difficult to unwind at some point. And, that same ownership experience has the potential to put the brand in the same after-thought category as Buick, Lincoln and Acura.