Genesis Loaners...This looks bad

[Mcc]

Standby for a dealer lawsuit.

 

[Cgo]

Funny you phrase it like that. When I was speaking to the GM at the dealership I bought my car from (he also manages the Cadillac dealer next door) said something along the lines of "we pick who we want to sell a car to. If they look like they'll be a pain, we will just choose not to sell to them."

Lol

I think the Hyundai version is more targeted against people they think dont have a lot of money, so there's this attitude that they have thinking that some Hyundai buyers have no other options because of the price point. Just my take after witnessing some of these associates in action.

 

[MrMegadeth]

Mazda wanted to move up market and admitted to themselves that their stores didn't support that so Corporate paid for the upgrades.

From the article it look slike Hyundai is only incentivizing the upgrades. But, many of the dealers haven't finished the upgrades from the rework of the Hyundai side AND NOW they want them to do the Genesis. I don't believe the Genesis bet is obvious let alone the change in sales guarantee for more "up scale" stores.

Hyundai needs to pay outright for this stuff in key markets. They need to show they believe in the cars too with cash.

 

[Cgo]

Yeah, the mazda stores near me make some luxury brands look like gas stations. Rock walls, waterfalls, two story glass elevators displaying cars, etc. That is true. If Genesis really wants nice dealerships, they should pay up.

 

[Mcc]

Yeah, the mazda stores near me make some luxury brands look like gas stations. Rock walls, waterfalls, two story glass elevators displaying cars, etc. That is true. If Genesis really wants nice dealerships, they should pay up.

Who should pay up? The dealers!

 

[Cgo]

Who should pay up? The dealers!

I think if Genesis demands stand alone, luxury dealerships, they should help fund them like other car companies did or cut the dealerships who refuse.

 

[Mcc]

I think if Genesis demands stand alone, luxury dealerships,

But they aren’t demanding that at least right now. I think if dealerships want to keep their Genesis franchise they should show it by putting their money where their mouth is. Otherwise it’s just (lousy) service as usual for them in a standalone. Dealership

 

[EdP]

I think if Genesis demands stand alone, luxury dealerships, they should help fund them like other car companies did or cut the dealerships who refuse.

Is that normal? I'm not really sure how some of the franchises on car dealers works. I know it is typical to supply some sales materials but are they going to subsidize the building?

As for cutting dealerships, that is part of what got them into this mess. Laws and lawsuits were a problem.

 

[ctrcbob]

Per my two Sonatas, and my Semi-Luxury Brand-X, Dealers were SURPRISED that I was a cash buyer. They assume everyone wants to make time payments (for up to six years-crazy).

As for service, my favorite Servicing Dealer has now been taken over by a large dealer group. Yes, I can drive in without an appointment however an oil change is now a “bundle”. Pay big bucks once then get the next three free, all within one Year. (Who gets four oil changes in one year?) My favorite tech recently quit that dealer because of the changes at their Svc Dept. Went to work at Disney. Other local Hyundai dealers charge a lot for oil changes, even when called Service Specials. The good though is they will take me without an appointment.

My Brand-X insists I make an appointment. Next closest dealers may or may not take me without an appointment.

 

[tarhoosier]

My last car was a Volvo. While waiting for service a salesman told me the new renovation of their building had been directed by Volvo NA, down to the supplier of the tile on the floor. Exact replica of the appearance of other stores. It was costly to the dealer though he did not specify what $ Volvo contributed. It was an expectation and requirement to continue the franchise arrangement.

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[EdP]

My last car was a Volvo. While waiting for service a salesman told me the new renovation of their building had been directed by Volvo NA, down to the supplier of the tile on the floor. Exact replica of the appearance of other stores. It was costly to the dealer though he did not specify what $ Volvo contributed. It was an expectation and requirement to continue the franchise arrangement.

Much of that makes sense. Some McDonald's vary a bit in layout but you know you are in McDonald's. Car brands should be at least somewhat the same. Done right, the customer will have a certain confidence level while there no matter who the dealer. .

 

[OMG70]

Mazda wanted to move up market and admitted to themselves that their stores didn't support that so Corporate paid for the upgrades.

From the article it looks like Hyundai is only incentivizing the upgrades. But, many of the dealers haven't finished the upgrades from the rework of the Hyundai side AND NOW they want them to do the Genesis. I don't believe the Genesis bet is obvious let alone the change in sales guarantee for more "up scale" stores.

Hyundai needs to pay outright for this stuff in key markets. They need to show they believe in the cars too with cash.

I think if Genesis demands stand alone, luxury dealerships, they should help fund them like other car companies did or cut the dealerships who refuse.

On the Hyundai side, those dealers don't really need to upgrade all that much to change the image of the brand. They're getting more respectable based on the vehicles. Nobody really expects a glamorous Toyota or Honda showroom, so Hyundai will get the same treatment. Don't really think Hyundai would need to pay for dealers to upgrade, they'll do so in time.

The problem for Genesis is that they have too many dealers in the network. If they were to pay for only the original 100 dealers to upgrade, that would have been one thing, but now they have 4x that and the visual upgrades aren't going to make the staff any better. So you also have to pump in 4x the original amount of training and hope to god it sinks in. Makes more sense to incentivize the dealer to change and then further reward those who go above and beyond the requirements...and hopefully cut out at least half the dealers. More volume per dealer = greater need for standalone infrastructure to support those customers and greater profits. It's a win-win

 

[TinsleyC]

Genesis corporate should come up with a "must have / must say / must do" list of dealer requirements and travel, incognito, to the dealers to check them out. Maybe that can flush them out.

 

[MrMegadeth]

Well, mt read of the new dealer incentive plan announced in Vegas will be similar to this. If you "perform" better you get more share of the money. It seems in the past Genesis Corp was paying a flat fee to move a car, which is why so many of us got amazing deals as there was no incentive to have ig or even a positive margin. Genesis was buying market share.

Going forward, it seems they have to perform to make money. Whats does perform mean, I have no idea. I hope it's sales volume, customer satisfaction (this is confirmed), but also corporate adherence, e.g. policy, image, etc.

 

[Cgo]

On the Hyundai side, those dealers don't really need to upgrade all that much to change the image of the brand. They're getting more respectable based on the vehicles. Nobody really expects a glamorous Toyota or Honda showroom, so Hyundai will get the same treatment. Don't really think Hyundai would need to pay for dealers to upgrade, they'll do so in time.

The problem for Genesis is that they have too many dealers in the network. If they were to pay for only the original 100 dealers to upgrade, that would have been one thing, but now they have 4x that and the visual upgrades aren't going to make the staff any better. So you also have to pump in 4x the original amount of training and hope to god it sinks in. Makes more sense to incentivize the dealer to change and then further reward those who go above and beyond the requirements...and hopefully cut out at least half the dealers. More volume per dealer = greater need for standalone infrastructure to support those customers and greater profits. It's a win-win

I dont care how many awards are won or accolades received, Genesis will never be seen by consumers as a true luxury brand and therefore not compete directly for buyers of luxury vehicles until they have stand alone Genesis dealerships like Lexus, Acura, Infiniti did. Not some half baked section at a Hyundai dealership.

 

[Cgo]

Well, mt read of the new dealer incentive plan announced in Vegas will be similar to this. If you "perform" better you get more share of the money. It seems in the past Genesis Corp was paying a flat fee to move a car, which is why so many of us got amazing deals as there was no incentive to have ig or even a positive margin. Genesis was buying market share.

Going forward, it seems they have to perform to make money. Whats does perform mean, I have no idea. I hope it's sales volume, customer satisfaction (this is confirmed), but also corporate adherence, e.g. policy, image, etc.

I still dont think the dealers care. Theyll just offer less discounts and if they dont sell, they dont sell. They make 99% of their profits from Hyundai vehicle sales. If anything, maybe this will weed out the bad dealerships because theyll just stop selling the brand.

 

[Cgo]

Per my two Sonatas, and my Semi-Luxury Brand-X, Dealers were SURPRISED that I was a cash buyer. They assume everyone wants to make time payments (for up to six years-crazy).

As for service, my favorite Servicing Dealer has now been taken over by a large dealer group. Yes, I can drive in without an appointment however an oil change is now a “bundle”. Pay big bucks once then get the next three free, all within one Year. (Who gets four oil changes in one year?) My favorite tech recently quit that dealer because of the changes at their Svc Dept. Went to work at Disney. Other local Hyundai dealers charge a lot for oil changes, even when called Service Specials. The good though is they will take me without an appointment.

My Brand-X insists I make an appointment. Next closest dealers may or may not take me without an appointment.

Wow, a Brand-X? Havent seen many if those on the road. I bet its sweet!

 

[MrMegadeth]

I still dont think the dealers care. Theyll just offer less discounts and if they dont sell, they dont sell. They make 99% of their profits from Hyundai vehicle sales. If anything, maybe this will weed out the bad dealerships because theyll just stop selling the brand.

If you, as a dealer, have inventory of Genesis cars on your lot that you don't sell this costs you a TON of money. Taxes, cold inventory (maintenance and insurance), lost sales opportunity due to lower inventory of sales movers. No one will do this - assuming they want to stay in business.

Corporate has to incentive the sale of the car WITH a profit. In the past it looks like the just incentivized the transaction, i.e. flat fee per transaction (regardless of OTD price). Hell, with this sales plan you are almost better off selling for wholesale or maybe even slightly below (depending on flat fee) and become a large volume mover - which is why Genesis did it. They wanted to flood the market early and quickly.

 

[WWIAFTM]

Had my first scheduled maintenance event a few weeks back. I booked it through the app, and received text updates several times leading up to the agreed upon time. They arrived promptly to my home and took my G70 and left me a loaner (a Hyundai SUV, not ideal but fine with me) then the service guy called me when the car arrived to confirm there weren't any other issues that needed attention. I also received text notification that the car had arrived. When completed, the service guy called again to let me know it was done and to confirm what time I wanted to receive my car. Then I received text notifications letting me know when my car was on its way and when they were approaching. My car arrived washed and vacuumed and they took back their loaner.

This was a pleasant experience all around. Happy that I'm one of the lucky ones.

 

[ctrcbob]

Had my first scheduled maintenance event a few weeks back. I booked it through the app, and received text updates several times leading up to the agreed upon time. They arrived promptly to my home and took my G70 and left me a loaner (a Hyundai SUV, not ideal but fine with me) then the service guy called me when the car arrived to confirm there weren't any other issues that needed attention. I also received text notification that the car had arrived. When completed, the service guy called again to let me know it was done and to confirm what time I wanted to receive my car. Then I received text notifications letting me know when my car was on its way and when they were approaching. My car arrived washed and vacuumed and they took back their loaner.

This was a pleasant experience all around. Happy that I'm one of the lucky ones.

Wow. This is like my former Mercedes Dealer.

Who is your Genesis Dealer?

As for upscale showrooms with food courts or diners inside, other than the Mercedes Dealer in South Orlando which has a Restaurant inside, there is a HONDA Dealer in Ocala that has a small indoor restaurant. Not sure but I think the Toyota Dealer in Colonial Drive, Orlando, has (had) a small food area inside.

Restaurants inside Dealerships is nothing new. When I lived in Rochester NY, about 30 or 35 years ago, Ralph Pontiac on Henrietta Road had a great restaurant indoors. Dealership as well as Pontiac, long gone.