Genesis G70 update

[Mark_888]

Yep, the extremely powerful dealership lobbyists have made sure that generous b̶r̶i̶b̶e̶s̶ contributions to their favorite ̶w̶h̶o̶r̶e̶s̶ politicians have those laws on the books for most states.

A lot of auto dealers are directly involved in politics. I remember from my college days that former mayor Roy Butler of Austin TX owned several dealerships. Lowell Lebermann, a three-term Austin City Council member, also owned a dealership in Austin (I think he may have bought it from Roy Butler).

 

[Bamm1]

I can't imagine bringing a prototype or Korean version of a car to a North American auto show for a USA launch, if they were different. That would create all kinds of problems, since some of the shows give out awards for Car of the Year, etc.

The icing on the cake was when the US spec Stinger finally arrived the highest trim level was missing 4 features present on the cars that made the Auto Show rounds and were on display at dealerships around the country. There are now people like myself (who were following the Stinger launch very closely) on this forum hoping the G70 can give them what they were expecting in the Stinger.

 

[GarnetTy1473]

Genesis is still telling us April on a release date. Or, at least they haven't told us anything different from previous times they've told us April.

They will also be announcing later this month what dealers are going to stay Genesis, and what ones are being eliminated.

 

[GV70GUY]

Thanks I know my local dealer already created a seperate showroom just for Genesis cars.

 

[Ksimard]

Come on DJ.. woeful coveager for a new genesis model so far. Is there a media black out or what? I mean there is literally nothing on the G70 since sept 2017, except for the 1day the pre-orders went up..but crickets since.
For a new car for and brand this is disappointing. Can you shed any light on your end?

 

[GenesisYEG]

Come on DJ.. woeful coveager for a new genesis model so far. Is there a media black out or what? I mean there is literally nothing on the G70 since sept 2017, except for the 1day the pre-orders went up..but crickets since.
For a new car for and brand this is disappointing. Can you shed any light on your end?

The car was technically unveiled last year but the unveiling at the Montreal Auto Show was specific to the Canadian market. You already know all the details of the car except for exact pricing and payments.

There will be a media event in the near future which will spawn numerous photos, videos, and reviews of the Canadian G70. I will also be in Toronto in 2 weeks to learn more about the G70 so I will let all of you know everything I learn! Unfortunately the event isn't a test drive event but from what I heard I will get the opportunity to flog one around the track prior to the Spring launch.

 

[YEH]

Based on the latest info. (see thread in the general forum), seems like Genesis is only going to allow the new Genesis franchises to sell the G70 and since only a few of them will be up and operating this year, will mean very limited G70 sales (all franchises must be operational by Jan. 1 2021).

Now, there is some wriggle-room as to interpretation as '19MY products will be designated solely for Genesis dealerships.

But typically with a new model launch (even in the 1st half of the year), Hyundai designates it as a next year model, so the G70 will in all likelihood be a '19MY.

Genesis is expected to launch in Australia in April or May.


Here are some pics of a Genesis showroom at a Canadian mall.

Genesis in Canada may be doing things in an innovative way, but it has impacted sales.

At its peak, Hyundai sold nearly 4k of the Genesis sedan in Canada and even when sales tailed off towards the end of the 1G Genesis life-cycle, still sold over 2k.

Last year, Genesis Canada sold just 433 of the G80.

Now, some decline can be explained by the price hike, but such a drastic decline probably has to do with the new sales strategy.

Even tho Genesis USA will be following a diff. strategy, as things look (and if they do go ahead with the plan that '19MY will only be available ar the new Genesis dealerships), will be a rough few years until a majority of the Genesis dealerships are up and running.

 

[GV70GUY]

I might be glad that I just bought a new G80.....

 

[dougjp]

A moderately early reaction, but so far I consider a fantastic car is being let down by BOTH Canadian and American naval gazing a.k.a sales strategies, and lack of advanced planning in tangible areas . IMO Lexus' highly successful experience many years ago has "poisoned" thinking to the point that nobody recognizes this is a different time entirely, and historically neither the Lexus formula for doing it right nor the Acura formula for doing it wrong are suitable now. In simplicity, I think back then people watched and eventually reacted in amazement and eventually bought something new being introduced with high class. Today, everyone wants and expects everything at once, as there is nothing really new in cars, companies, marketing etc. etc. Today a launch has to be comprehensive before it first appears.

There are similarities with what Genesis is doing compared to Lexus in both markets. Great cars, upscale marketing and customer interaction attempts, coddling of owners/prospects with special service promises and so on. Beyond the surface however, what is there? Its a work in process. Service when you are on a trip somewhere and something breaks down far from home/outside major markets? Where is that in existence now? If traveling in the US and desperately needing service, are Hyundai dealers, many of whom are seeing the writing on the wall, going to be hostile? What about how the two profit centers (Hyundai and Genesis) are each adequately being satisfied when it comes to getting superior trade in value for your existing Hyundai when trading it in for a Genesis, compared to going to an Audi/Lexus/BMW/Infinity/Mercedes dealer? Why are cars even being introduced before all these things are answered and available in advance?

I suspect nobody will agree with me, but i feel the best way to launch Genesis in today's climate of people wanting everything wherever and at a value for money cost was to allow every Hyundai dealer that agreed and completed a separate waiting room and showroom area for Genesis before a specified date ("the launch date") to sell all Genesis models. Simple, more area coverage, service etc. Canada is too cost intensive, US is too contentious.

 

[GenesisYEG]

Based on the latest info. (see thread in the general forum), seems like Genesis is only going to allow the new Genesis franchises to sell the G70 and since only a few of them will be up and operating this year, will mean very limited G70 sales (all franchises must be operational by Jan. 1 2021).

Now, there is some wriggle-room as to interpretation as '19MY products will be designated solely for Genesis dealerships.

But typically with a new model launch (even in the 1st half of the year), Hyundai designates it as a next year model, so the G70 will in all likelihood be a '19MY.

Genesis is expected to launch in Australia in April or May.


Here are some pics of a Genesis showroom at a Canadian mall.

Genesis in Canada may be doing things in an innovative way, but it has impacted sales.

At its peak, Hyundai sold nearly 4k of the Genesis sedan in Canada and even when sales tailed off towards the end of the 1G Genesis life-cycle, still sold over 2k.

Last year, Genesis Canada sold just 433 of the G80.

Now, some decline can be explained by the price hike, but such a drastic decline probably has to do with the new sales strategy.

Even tho Genesis USA will be following a diff. strategy, as things look (and if they do go ahead with the plan that '19MY will only be available ar the new Genesis dealerships), will be a rough few years until a majority of the Genesis dealerships are up and running.

The Square One store in Mississauga is beautiful, for sure. My showroom will be very similar in size and aesthetic -- coming in just 4 months!

Hyundai had an advantage of selling the Genesis back in 2009 -- brand recognition, an established dealer network, incentives and rebates, lower pricing, etc. Genesis currently has minimal brand recognition, only 20 agencies in Canada, a haggle-free pricing model, an e-commerce model which is foreign to a large percentage of the current demographic of Genesis clientele, and the cars are also more expensive. However, in my opinion it is the correct way of doing things even though the start will be slower at first -- there is no way the Genesis brand would be taken seriously as a luxury marque if it simply was a few models in the Hyundai lineup.

Genesis Canada knows that they are playing the long game and was never expecting sales to be through the roof for the first year. Also, the drop from 4k Hyundai Genesis sales to 2k isn't exactly something to be proud of so something had to change. The future is omni-commerce (e-commerce and physical retail) and Genesis Canada is moving towards that direction with boutique stores and brick and mortar stores coming soon. Baby steps, my friend.

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[YEH]

^ Don't necessarily disagree about the long-term playbook/outlook, but for the short-term (as already shown in Canada and likely for the US market as well), going to see some painful reversal in sales (in particular, for the G80).

As for the decline in sales from 4k to 2k, don't think it's unusual as models age and more and more buyers are opting for CUVs.

Still a lot better than what the GS and Q70 were/are doing in Canada.

The current GS saw sales decline from 836 in 2012 to just 328 last year.

The M/Q70 went from 550 in 2010 to a measly 66 on 2017.

But also like I had stated from the very start, as the price creeps up (due to the added cost of a luxury brand and dealer network), sales will inevitably see some decline as the value proposition drops.

 

[GenesisYEG]

I definitely think that Genesis should hurry up and get the GV80 and GV70 to market already but that is wishful thinking. The G70 will help Genesis gain some ground until then, I'm certain. Compact luxury cars are still very popular in Canada, especially here in the Edmonton area.

 

[YEH]

^ Definitely sooner would be better, but it takes as long as it takes (rather have them do it correct then miss things on a hurried job).

And the supposed timetable for the launch of GV80, at least for the US market, wouldn't be that much behind the launch of the G70 in the States.

If it is accurate that the US launch of the G70 won't be til sometime in the fall, an early-mid 2019 launch of the GV80 is pretty close behind.

And one possible reason why the GV80 has the timetable it does have may be that the GV80 rides on a newer platform (one that will underpin the G80 replacement).

The GV70 is further out on the timeline and suspect that it would be the better seller in Canada.

 

[GenesisYEG]

The GV80 is almost certainly riding on the new platform. And yes, I agree that it is better to do things right rather than rush and half-ass things and given that Genesis is already playing the long game with their business model, it is a given that they will be taking the time to ensure their products are done right the first time.

It will be an exciting few years for Genesis as the lineup is expected to have the two SUVs and the sports car by 2021.

 

[YEH]

^ That would make perfect sense (about how long it is taking) if the new platform cuts weight (which is expected).

Weight is a problem on the G80 and building an even heavier CUV on that platform would not be ideal.

Also since Genesis is serious about electrifying most of its lineup and a hybrid and/or PHEV version of the GV80 on the current G80 platform would be an absolute pig (with the added weight of the battery pack).

In addition, while Genesis isn't going away from high-tensile steel (due to Hyundai having an ownership stake in a steel plant), definitely need to use aluminum (or carbon fiber) in a few strategic spots.

Can't buy the cost excuse as the Ioniq uses a decent amount of aluminum (altho w/ the price of aluminum these days, maybe carbon fiber or some other lighter weight material would be a better bet).

As for that 2021 timeline, probably won't see the 3rd Genesis cuv (GV60?) until sometime in 2021 at the earliest (which again, should do well in Canada).

 

[YEH]

Hey, GenesisYEG.

Since how Genesis fares plays has a much greater impact on you than for the rest of us, care to offer an opinion as to whether Genesis should have offered CUVs earlier w/ tarted up versions of the Santa Fe, SF XL and the Tucson? (Putting aside the production capacity issues.)

In your view, would that have been a good thing or would it have been taking a shortcut that doesn't match up to the long-game for Genesis?

 

[GenesisYEG]

I joined the Genesis team right from its inception and I fully bought into their vision. As such, I am personally glad that the Genesis SUVs aren't based on Hyundai platforms. As much as my wallet would love any immediate sales increase, additional Hyundai-based Genesis vehicles would not help the brand out with their complete separation from Hyundai.

One of the current brand pillars of Genesis is that it uses RWD-based platforms for all its vehicles. As all Hyundai SUVs are based on FWD platforms this immediately goes against what Genesis wants, especially since Genesis does not want to share any platform with Hyundai (asides from the G80 as it started life as a Hyundai). Additionally to the previous statement, rumor has it that the G70 was originally destined to be a Hyundai before Genesis separated so that's why Kia has the Stinger.

 

[TEF]

Given the positive reaction to the Kia Stinger, I am surprised that Hyundai delayed the sale of a smaller RWD sedan this long. The current Genesis line up is comprised of large and heavy G80 and an even larger and heavier G90. Neither is very sporty or fun to drive, so you have to wonder about the delay of the G70. Having owned the original Genesis (that was not bad for the price) and the G80 3.8 AWD, I believe that Hyundai is heading the wrong way with bigger and heavier sedans. In Korea these large sedans are limo's operated by corporations and hotels, but just don't cut it when compared with other cars in the same class (i.e. BMW, Audi and Lexus). As prices for Genesis sedans escalated with each model year, there is less and less reason to choose the rather unremarkable G80 and G90 over German and Japanese-made vehicles. Add to this the lagging sales of sedans in general (and no SUV from Hyundai) and it's hard to imagine much growth for the Genesis brand.

 

[Mark_888]

Given the positive reaction to the Kia Stinger, I am surprised that Hyundai delayed the sale of a smaller RWD sedan this long.

Delayed? Are you kidding me? Do you think they can just snap their fingers for a brand new car and have the design and manufacturing problems solved, bugs fixed, government approvals obtained, etc, any time they want to?

The will offer it for sale as soon as it is ready.

 

[Bamm1]

Delayed? Are you kidding me? Do you think they can just snap their fingers for a brand new car and have the design and manufacturing problems solved, bugs fixed, government approvals obtained, etc, any time they want to?

The will offer it for sale as soon as it is ready.

I don't think there has been a delay...........yet.

The Kia Stinger went on sale in the Korean home market at the end of May (2017). It was available in November (2017) in the US.

The Genesis G70 has been on sale in Korea since September (2017). Applying the same "Stinger time frame" gets you an on sale date of Feb./Mar. in the US. That really doesn't seem like a hardship to meet. I believe the original rumors put the on sale date in the US as sometime in April. Which still seems reasonable. Now, pushing beyond that would seem like a purposeful delay.

I suspect there may well be a couple of reasons for a "strategic" delay. They may not want to cannibalize Stinger sales after it was also just launched in the US. There also may be a desire to see how far they can get on the stand alone Genesis dealership model (maybe be ready to do the first G70 free maintenance at a Genesis only dealership in some locations).