Hyundai changes its mind on Genesis dealers -- again

[Mcc]

There seems to be a very strong and well established dealer lobbies in many states, hence strong franchise laws.

 

[Mark_888]

What...a...nightmare. The laws in the USA are BS. Tesla knows that all too well. I just want a G70.

I don't think the state laws are the problem. Genesis management is the problem.

If they had just required up front that completely separate dealerships be built in order to sell the Genesis, and opened it up to all dealers, that would likely have solved the problem. Probably only less than half the 350 "elite" Hyundai dealers who currently sell the G80 and G90 for 20170-18 model years would have invested $10 million to build a a separate dealership facility (dealerships are independent businesses and not owned by Hyundai or Genesis). The idea to restrict to 100 dealers was pretty extreme IMO.

The interesting outcome of this according to the article quoted above is that many G80 and G90 owners (apparently depending on the state) actually own a Hyundai and not a Genesis.

Even more serious, is managements decision to focus on the G70 and get it to market before any kind of Genesis SUV.

IMO, Hyundai should fire Genesis General Manager Erwin Raphael. In the last 5 years Hyundai has fired two Hyundai Motor America CEO's for no good reason. John Krafcik who now is head of Waymo (self driving cars at Google) was fired at end of 2013. Dave Zuchowski was fired at the end of 2016. How Raphael gets to keep his job after this fiasco is beyond me.

 

[Mark_888]

Many Lexus owners take their vehicles to a Toyota dealership for basic maintenance; of course (maybe for convenience, but also cheaper), warranty work would have to be done by a Lexus dealership.

I know one person who does that because the Lexus dealer is too far away, and the Toyota dealer has enough of the same OEM parts shared with Toyota models (filters, etc).

 

[Mark_888]

Of particular note to me is the reference to different laws and regulations in different states that specifically affect whether these cars are to sold and licensed as a Hyundai model or a Genesis brand.

Since Hyundai Motor America has been selling vehicles to dealers in almost every state for more than 25 years, they should be very much aware of the laws in each state. Warranty laws can vary, emissions laws can vary, and dealer franchise laws vary. There is nothing new about this.

 

[Edmguy]

It really sucks that they have been having so many issues in the US with this. I am glad things seem to be much better here in Canada.

Be patient guys, the car is worth it imo!

 

[devellis]

...

Be patient guys, the car is worth it imo!

I sure hope so. But we don't know what "it" (i.e., the price) is yet, so hard to determine at this stage.

 

[PMCErnie]

Maybe its time for some Hyundai dealers to start thinking "outside the box". For example, based on recent news - that nearby local Ford dealer may be wanting to sell out before too long. Some paint, a fancy coffee machine, new asphalt cap on the lot, a new sign and "Voila" you've got a new Genesis dealership, service bays and all.

How do this represent thinking outside the box? Car dealers do this every day.

 

[PMCErnie]

It really sucks that they have been having so many issues in the US with this. I am glad things seem to be much better here in Canada.

Be patient guys, the car is worth it imo!

I'm wondering what is better in Canada. Canadians are paying window sticker prices and Genesis cars are being serviced at Hyundai dealers.

 

[Windchaser]

I'm wondering what is better in Canada. Canadians are paying window sticker prices and Genesis cars are being serviced at Hyundai dealers.

But they are able to buy a G70 in Canada. When will the be available in the US?

 

[PMCErnie]

But they are able to buy a G70 in Canada. When will the be available in the US?

Are you looking to buy a Hyundai G70, or a Genesis G70?

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[EdP]

I'm wondering what is better in Canada. Canadians are paying window sticker prices and Genesis cars are being serviced at Hyundai dealers.

But what is the real sticker price? Is it the same as the US with a big dealer markup to be negotiated or a realistic and fair price? It may not be so bad. Has anyone done a comparison on the G80 or G90?

I don't care about service at a Hyundai dealer. It is a lift in a building. As long as the guy working on my car has some Genesis training I'm OK with it. The sign outside is meaningless. I had my Mercedes serviced by a local guy with one bay in his shop. He knew more about them than 95% of the dealer techs.

 

[devellis]

Canada seems to have some clear advantages at this point, including availability. As we don't know what US pricing will be, we can't say how that will wash out. I do like the idea of a direct-from-manufacturer purchasing structure like Canada has.

I'd rather have a nearby Hyundai dealer who can provide convenient service than a distant Genesis dealership that's my only option. Thankfully, that last scenario seems to be off the table now.

Obviously, we don't have all the details for how things will go in the US as of now. Hopefully, it'll all work out.

 

[WPB]

OK. Please provide names and addresses of seven that did it in the last week.

 

[Edmguy]

I'm wondering what is better in Canada. Canadians are paying window sticker prices and Genesis cars are being serviced at Hyundai dealers.

While I don't really like the fixed pricing however, in Canada at the moment anyway, it is still competitive pricing so that is all that I cared about.

As far as servicing, my city has 6 Hyundai dealerships, but only one that will be servicing Genesis vehicles under the valet service. So I have to put some trust that they picked the correct dealership and service technicians. I highly doubt by the time the G70 starts being delivered in the US there will be a full line of exclusive Genesis dealers for service so I don't think there will be much difference there.

 

[Windchaser]

Are you looking to buy a Hyundai G70, or a Genesis G70?

Neither. I just bought a G80 Sport. However, for those looking for the G70 I’m sure most would like to but now rather than having to wait some undetermined amount of time until they are available. I’m sure it’s frustrating that our nrighbors to the north are driving them already and here we don’t know when they will be available or what they will cost.

 

[PMCErnie]

OK. Please provide names and addresses of seven that did it in the last week.

Do you have the appropriate clearance to receive this info? We try to keep it classified.

So, again I ask, what is revolutionary about your suggestion? You said it represents "outside the box" thinking. I think we'd all agree, however, that it's one of two routine options: either build a new facility, or purchase/rent an existing one.

 

[Pulone]

I just read that Hyundai has renigged on plan to create totally separate Genesis dealerships (like Toyota & Lexus)
Back to original plan, same dealer, separate showroom.

Guessing financial decision, but weakens Genesis attempt to improve image.

 

[PMCErnie]

I guess you missed the multiple recent threads on this topic.

 

[Mark_888]

I just read that Hyundai has renigged on plan to create totally separate Genesis dealerships (like Toyota & Lexus)
Back to original plan, same dealer, separate showroom.

Guessing financial decision, but weakens Genesis attempt to improve image.

That is not the latest.

Previously, they were only going allow 100 dealers to get a Genesis dealership, starting with the 2019 model year, if they promised to build a separate Genesis dealership. Many delears were upset about this, because they would not get a Genesis franchise. Now, because of state franchise laws, they have to permit any existing Hyundai dealer already selling the G80 and G90 (350 dealers) to apply for a separate Genesis dealership, so there will likely be more than 100 Genesis dealers.

However, all separate Genesis dealerships will have to commit to building a dedicated Genesis dealership facility for both sales and service by some date (I believe it is end of 2020 or 2021), Until that date, those selected to have a separate Genesis dealership can continue to sell the Genesis model years 2019+ at their existing Hyundai dealership facility.

BTW, using the word "independent" is unclear, because all car dealerships are independently owned and not owned by the manufacturer, according to laws in almost every state. But I knew what you meant.

 

[PMCErnie]

Just what we need, yet another thread on this subject.