Genesis lays out a U.S. overhaul plan

[Mcc]

The other brands you mention were brought into the US as a new brand. Genesis was a model sold by Hyundai dealers and later made into a separate brands. Dealers already had rights to sell it. Franchise laws in 50 different states became involved and dealers that did not want to give up Genesis sued, etc.

Nice summary. I guess we have to repeat the story every time because the history is just not known to many. And each time someone say “how come they could do this and Yet Genesis can’t do that”

 

[MyCorvette]

The other brands you mention were brought into the US as a new brand. Genesis was a model sold by Hyundai dealers and later made into a separate brands. Dealers already had rights to sell it. Franchise laws in 50 different states became involved and dealers that did not want to give up Genesis sued, etc.

And if you checked out reviews on Glassdoor, you can get a feeling of what will be like if you were working for HMA corporate. I was interviewed for an executive position in that company so have some chances to know it. Together with the dealership factor, all these lead to the current situation.

 

[Mcc]

Together with the dealership factor, all these lead to the current situation.

Which they are trying to change with this plan

 

[TinsleyC]

The other brands you mention were brought into the US as a new brand. Genesis was a model sold by Hyundai dealers and later made into a separate brands. Dealers already had rights to sell it. Franchise laws in 50 different states became involved and dealers that did not want to give up Genesis sued, etc.

So it's all about the Genesis car that became the G80. Seems like Hyundai/Genesis could have done a better job in planning that.

So renaming the car and giving it a new parent company isn't enough? Hyundai can't simply say the Genesis car no longer exists?

I know... If it was that simple, it would have been. Whatever

 

[EdP]

So it's all about the Genesis car that became the G80. Seems like Hyundai/Genesis could have done a better job in planning that.

So renaming the car and giving it a new parent company isn't enough? Hyundai can't simply say the Genesis car no longer exists?

I know... If it was that simple, it would have been. Whatever

Just when it seemed thing were resolved, some franchisees also took them to court holding up things even longer. Those states were not getting any cars. Car dealers in the US have strong laws in their favor. Tesla had some big fights too and you still cannot have a Tesla store in 10 states and restrictions in others.

I cannot imagine what it was like at a weekly staff meeting at Genesis HQ in those days. It won't be over until they have a bunch of stand alone dealers.

There has been a lot of criticism in the past couple of years, but look at what they accomplished. Sure the G80 was a refresh very year but a new G90, G70, GV80, soon another G80, dealer issues. Really complex and many hours of labor by a lot of people.

 

[PMCErnie]

In a nutshell, Hyundai should have left well-enough alone. They should have let Hyundai dealers (who wanted to) continue to sell luxury Genenis/Equus etc. vehicles in enhanced sales and service areas within existing dealerships. Over time, the advances in quality in all lines would (will) pull in the customers.

If you build a better product the buyers will be at the door. Hyundai/Genesis are doing that. However, they got nervous and couldn’t wait for the payoff. Instead they gambled on a spin-off approach for the Genesis line. I view it as a losing proposition. You don’t always need plastic surgery to attract a spouse. Sometimes you just need to dress better, take a bath and comb your hair.

 

[EdP]

In a nutshell, Hyundai should have left well-enough alone. They should have let Hyundai dealers (who wanted to) continue to sell luxury Genenis/Equus etc. vehicles in enhanced sales and service areas within existing dealerships. Over time, the advances in quality in all lines would (will) pull in the customers.

If you build a better product the buyers will be at the door. Hyundai/Genesis are doing that. However, they got nervous and couldn’t wait for the payoff. Instead they gambled on a spin-off approach for the Genesis line. I view it as a losing proposition. You don’t always need plastic surgery to attract a spouse. Sometimes you just need to dress better, take a bath and comb your hair.

You may be right and it will take years to know for sure how it all goes. I've worked with a few different dealers and had no problems. The old system worked for me.

As you've seen here though, a bunch of people had poor dealer experiences and a handful don't want to be seen passing that Hyundai sign and share a waiting area with Hyundai owners in for service. They want the separated stand alone dealer. In either case, they should have had better standards in place and enforced them better.

 

[TAC]

You may be right and it will take years to know for sure how it all goes. I've worked with a few different dealers and had no problems. The old system worked for me.

As you've seen here though, a bunch of people had poor dealer experiences and a handful don't want to be seen passing that Hyundai sign and share a waiting area with Hyundai owners in for service. They want the separated stand alone dealer. In either case, they should have had better standards in place and enforced them better.

Personally, I don't care how they sell them - stand alone or thru Hyundai dealerships. But from experience I can tell you it is NOT easy when you are REALLY interested in buying a Genesis but you have to travel 40 miles to the nearest dealer and they have 2 GV80s both Himalayan Gray with Black interior. If I go 50 miles I can get to a dealer with 1 GV80 -Vic Black with Black interior. Then 70 miles for 4 GV80s.

It is curious to me how Genesis does NOT have 1 dealership in ALL of Southeastern Massachusetts / Cape Cod. They REALLY need to make Genesis cars/SUVs more accessible - SALES ARE BEING LOST

 

[Aquineas]

Personally, I don't care how they sell them - stand alone or thru Hyundai dealerships. But from experience I can tell you it is NOT easy when you are REALLY interested in buying a Genesis but you have to travel 40 miles to the nearest dealer and they have 2 GV80s both Himalayan Gray with Black interior. If I go 50 miles I can get to a dealer with 1 GV80 -Vic Black with Black interior. Then 70 miles for 4 GV80s.

It is curious to me how Genesis does NOT have 1 dealership in ALL of Southeastern Massachusetts / Cape Cod. They REALLY need to make Genesis cars/SUVs more accessible - SALES ARE BEING LOST

While your point about the lack of dealerships in that region is valid (and I'm certainly not trying to add to your frustration), I'm not sure they are losing any sales at the moment. My impression is GV80 sales are pretty brisk.

 

[Chad86tsi]

Personally, I don't care how they sell them - stand alone or thru Hyundai dealerships. But from experience I can tell you it is NOT easy when you are REALLY interested in buying a Genesis but you have to travel 40 miles to the nearest dealer and they have 2 GV80s both Himalayan Gray with Black interior. If I go 50 miles I can get to a dealer with 1 GV80 -Vic Black with Black interior. Then 70 miles for 4 GV80s.

It is curious to me how Genesis does NOT have 1 dealership in ALL of Southeastern Massachusetts / Cape Cod. They REALLY need to make Genesis cars/SUVs more accessible - SALES ARE BEING LOST

In my state with a population of over 4 million, there are only 6 genesis vehicles in total in the entire state, 3 of which are GV80's, and all the same model.

If you want, you can count the next state over genesis dealers inventory of 11 total (1@GV80), which is an hour drive from me.

hard to get established when you have no product to sell. I think they don't' sell well, so few are stocked, and because few are stocked (and other serious dealer problems), they don't well well. It's a sad cycle.

______________________________

Help support this site so it can continue supporting you!

 

[EdP]

In my state with a population of over 4 million, there are only 6 genesis vehicles in total in the entire state, 3 of which are GV80's, and all the same model.

If you want, you can count the next state over genesis dealers inventory of 11 total (1@GV80), which is an hour drive from me.

hard to get established when you have no product to sell. I think they don't' sell well, so few are stocked, and because few are stocked (and other serious dealer problems), they don't well well. It's a sad cycle.

Not that sad. They are selling all they can make. New models in the works. The Ulsan plant put out 1.5 million vehicles.

Hyundai's factory: The biggest in the world | Auto Express

No plant builds more cars a year than Hyundai's remarkable Ulsan facility in South Korea. We visit a true manufacturing phenomenon

www.autoexpress.co.uk

 

[Chad86tsi]

Not that sad. They are selling all they can make. New models in the works. The Ulsan plant put out 1.5 million vehicles.

Hyundai's factory: The biggest in the world | Auto Express

No plant builds more cars a year than Hyundai's remarkable Ulsan facility in South Korea. We visit a true manufacturing phenomenon

www.autoexpress.co.uk

If you watch their local inventory as I do, they aren't selling here. Some of their cars sit on their lot for over a year. It's not because it's a poor product.

It's different from region to region, and model to model, but in my area, they are poorly represented, and thus sell poorly. cause or effect? hard to say. I just know it's hard to buy what isn't available, and because inventory doesn't move, no new fresh inventory is brought in.

 

[Speeder]

While your point about the lack of dealerships in that region is valid (and I'm certainly not trying to add to your frustration), I'm not sure they are losing any sales at the moment. My impression is GV80 sales are pretty brisk.

It may be hard to tell if sales are brisk or supply is low. Some trim levels of GV80's are seeing some pretty good discounts from MSRP. On the other hand, the 3.5 Prestige models are often sold before they arrive at the Dealer. The 3.5 Prestige also represent the smaller portion of the Dealer allotments.

 

[EdP]

If you watch their local inventory as I do, they aren't selling here. Some of their cars sit on their lot for over a year. It's not because it's a poor product.

It's different from region to region, and model to model, but in my area, they are poorly represented, and thus sell poorly. cause or effect? hard to say. I just know it's hard to buy what isn't available, and because inventory doesn't move, no new fresh inventory is brought in.

A Ford dealer near me claims to be the highest volume Ford truck dealer in the world. He still has many 2020 models on the lot.

 

[YEH]

In a nutshell, Hyundai should have left well-enough alone. They should have let Hyundai dealers (who wanted to) continue to sell luxury Genenis/Equus etc. vehicles in enhanced sales and service areas within existing dealerships. Over time, the advances in quality in all lines would (will) pull in the customers.

If you build a better product the buyers will be at the door. Hyundai/Genesis are doing that. However, they got nervous and couldn’t wait for the payoff. Instead they gambled on a spin-off approach for the Genesis line. I view it as a losing proposition. You don’t always need plastic surgery to attract a spouse. Sometimes you just need to dress better, take a bath and comb your hair.

Over the long haul, having separate dealerships is the better way to go.

Ford has also had trouble getting more Lincoln franchisees to build a separate store, but their highest grossing Lincoln stores are stand-alone stores.

 

[PMCErnie]

Over the long haul, having separate dealerships is the better way to go.

Ford has also had trouble getting more Lincoln franchisees to build a separate store, but their highest grossing Lincoln stores are stand-alone stores.

We’ll have to disagree. Let us know if and when you see any significant number of standalone Genesis dealerships in the USA.

The GM of my Hyundai/Genesis store told me just last week that he’d love to put a Genesis sign out front but, contractually, his hands are tied from doing so. That barrier needs to go first.

 

[YEH]

^ Like always.

Note, for smaller dealerships/markets - have always stated that having a separate store (housing the showroom and service lounge) on the same lot as the Hyundai dealership would be acceptable, but there are just too many mediocre Hyundai dealerships trying to sell Genesis like they do an Accent.

The 150 or so Genesis franchisees under the original plan are still going ahead with separate stores.

 

[Ixlr8]

Just wow. I bought my '20 G80 Sport from a dealer that had special VIP room. I visited my local Genesis dealer and they had no such room. It is 100 miles round trip to go to my purchasing dealer that I bought it from, and not worth it IMHO. Although it would be sweet to treated like a VIP at my local dealer. I would be down with a new Genesis dealership popping up, if I could feel that special relationship again.
I do not have enough trust to have someone from the dealer pickup my car for service and not hot rod it. I know, because I used to do it in my youth. My brother tells me stories of his Mercedes dealership in Dallas that would wash his car any time, while he eat fresh bagels and cream cheese while he waited, without requiring service, at no cost. Now I could really get onboard with a program like that...

I dropped off my wifes Subaru Forester for an oil change. The service writer said that the cleaning process may scratch the paint, noting how immaculate the car was. I asked him why they even had a car wash that scratched paint... His reply was that it was automated and he could not guarantee that their would be no damage. I asked him what they used on the dealership vehicles, and he said the same machine. <exasperated look>

 

[Markbridge]

Just wow. I bought my '20 G80 Sport from a dealer that had special VIP room. I visited my local Genesis dealer and they had no such room. It is 100 miles round trip to go to my purchasing dealer that I bought it from, and not worth it IMHO. Although it would be sweet to treated like a VIP at my local dealer. I would be down with a new Genesis dealership popping up, if I could feel that special relationship again.
I do not have enough trust to have someone from the dealer pickup my car for service and not hot rod it. I know, because I used to do it in my youth. My brother tells me stories of his Mercedes dealership in Dallas that would wash his car any time, while he eat fresh bagels and cream cheese while he waited, without requiring service, at no cost. Now I could really get onboard with a program like that...

I dropped off my wifes Subaru Forester for an oil change. The service writer said that the cleaning process may scratch the paint, noting how immaculate the car was. I asked him why they even had a car wash that scratched paint... His reply was that it was automated and he could not guarantee that their would be no damage. I asked him what they used on the dealership vehicles, and he said the same machine. <exasperated look>

But think about it, do you really think a dealer is going to use the “two bucket” method to wash their cars? I’ve stopped having the dealer wash my car after service years ago. Just not worth the chance of scratching the paint. I even made a sign I put on the dash indicating not to wash the car.

 

[PMCErnie]

Ofttimes I’ll drop off my Genesis, or Santa Fe, at the Hyundai dealer and then walk across the street to the Lexus dealer for coffee, snack and comfy chair. When I do that I compare the prices and features between Lexus and my dealer. Guess what? It’s a nice place to visit, but I wouldn’t want to live there.