Hyundai dealers try to sue Genesis from opening stand-alone facilities.... again

[Prospective G80 Owner]

Look familiar? Do you think Braman is being careless or deliberately misleading? I’m tempted to contact them and ask if the have anything in Adriatic Blue.
View attachment 31520

Well, they've dropped the price another thousand dollars, although they're still erroneously listing it as Adriatic Blue, LOL. The price is now $38,472. They paid me $36,000 and originally listed it for sale at $39,987.

https://cars.usnews.com/cars-trucks/used-cars/for-sale/vin/kmhgn4jb1ku286343-2019_genesis_g80?page=1&range=50&zip=33301&make=Genesis&model=G80&orig-model=&year_min=2019&year_max=&price_min=0&price_max=100000&mileage_min=0&mileage_max=150000&sort=&both=

 

[Tollypopo]

Yes but why should they? They don't seem to have to offer luxury support to their Hyundai customers and clearly can not seem to distinguish between those customers and Genesis customers. With separate facilities the difference would be obvious. You argument is great in theory but will never work in practice.

That can work, just like the airline having lounge for higher paid customers. They can have a separate area for the Genesis customers, but still service Hyundai and Genesis at the same location. just my thought.

 

[EdP]

That can work, just like the airline having lounge for higher paid customers. They can have a separate area for the Genesis customers, but still service Hyundai and Genesis at the same location. just my thought.

If the accommodations are clean and reasonably comfortable I see no need to be segregated. Sometimes I sit and read, other times I chat with others waiting. Even Elantra owners can be interesting to chat with.

The key is to treat all customers well. Some dealers do it better than others

 

[TinsleyC]

Well, they've dropped the price another thousand dollars, although they're still erroneously listing it as Adriatic Blue, LOL. The price is now $38,472. They paid me $36,000 and originally listed it for sale at $39,987.

Seems to show Polar Ice now -

 

[Ed Okin]

If the accommodations are clean and reasonably comfortable I see no need to be segregated. Sometimes I sit and read, other times I chat with others waiting. Even Elantra owners can be interesting to chat with.

The key is to treat all customers well. Some dealers do it better than others

Greats points as always EdP! As the owner of BOTH a G70 and an Elantra, I’m glad you find me interesting to chat with, and I can tell you that many Elantra owners are those who are biding their time in solid Hyundai model until they’re able to step up to the next level.

 

[LandOfConfusion]

Greats points as always EdP! As the owner of BOTH a G70 and an Elantra, I’m glad you find me interesting to chat with, and I can tell you that many Elantra owners are those who are biding their time in solid Hyundai model until they’re able to step up to the next level.

I have no doubt that many Elantra owners can be interesting to chat with. As willing as I'd be to visit with any Hyundai owners waiting for service to be performed, that's not the primary reason I'm at the dealership. And, unfortunately, my Genesis dealership's accommodations are neither clean nor reasonably comfortable. It's actually pretty surprising that H/K/G hasn't given my dealership grief over the conditions of the store and waiting area. Who knows, maybe they have and there's no cooperation there. All I can say is that I *really* don't want to spend time in the service waiting area of my dealership.

 

[EdP]

I have no doubt that many Elantra owners can be interesting to chat with. As willing as I'd be to visit with any Hyundai owners waiting for service to be performed, that's not the primary reason I'm at the dealership. And, unfortunately, my Genesis dealership's accommodations are neither clean nor reasonably comfortable. It's actually pretty surprising that H/K/G hasn't given my dealership grief over the conditions of the store and waiting area. Who knows, maybe they have and there's no cooperation there. All I can say is that I *really* don't want to spend time in the service waiting area of my dealership.

Any dealer of any brand should have decent waiting areas. Like it or not, there are times we are stuck there. Coffee, water, snacks, comfortable seating and clean restrooms. Not really difficult.
I have no idea how much influence a brand has but this goes back to Genesis wanting 100 dealers to start.

Franchisees are independent businesses and have much control. So far, they are winning the battle. If the facilities are decent there is no reason to segregate Genesis owners from the great unwashed.

 

[Ed Okin]

It seems like these are the kind of people that Genesis is trying to bring in, but I think in real life John and Chrissy are driving their Porsche and Ferrari.

 

[RCH04]

It seems like these are the kind of people that Genesis is trying to bring in, but I think in real life John and Chrissy are driving their Porsche and Ferrari.

You're probably not TV too far off. Kinda like when Buick had Tiger and Shag as spokesmen.

 

[EdP]

It seems like these are the kind of people that Genesis is trying to bring in, but I think in real life John and Chrissy are driving their Porsche and Ferrari.

Legend has been spotted driving a Tesla Model S

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[Backslack]

Jalopnik has caught on

Hyundai/Genesis Dealers Not On Board With Dealer Upgrades - Jalopnik

Genesis is doing great things with its vehicles. The G70 has gained almost universal praise for being a proper sports sedan and the new G80 and GV80 are both gorgeous inside and out. Sales, though, could definitely be better. Last year Genesis moved 21,233 vehicles.

jalopnik.com

 

[DV_hat]

I'm confused by these lawsuits, are these dealers expecting to consistently move $70k luxury cars off their "cheapo" lots?

 

[EdP]

I'm confused by these lawsuits, are these dealers expecting to consistently move $70k luxury cars off their "cheapo" lots?

Given the volume it would not be easy to support a full dealership but the only way to change that is to open some dealerships and be acknowledged as a real luxury brand. Only thing I can figure is some dealers don't want to lose the few sales of Genesis they have. I hope they lose.

 

[pulsar]

Too bad Genesis corporate somehow could not open a few new dealerships in select markets as test beds. Those dealerships do well and bring in more upscale buyers who otherwise might not set foot in a Hyundai dealership then maybe rank and file dealerships might be willing to make the investment. Most states won’t allow manufacturers to sell direct so Genesis would have to get creative, but if someone does not test the water I don’t see most Hyundai dealers jumping on board with a stand alone dealership and the investment required.

 

[PMCErnie]

I'm confused by these lawsuits, are these dealers expecting to consistently move $70k luxury cars off their "cheapo" lots?

I dunno where you have been, but Hyundai/Genesis have made plenty of money selling vehicles “together” for 11(?) years.

 

[EdP]

I dunno where you have been, but Hyundai/Genesis have made plenty of money selling vehicles “together” for 11(?) years.

True, dual dealerships have been around longer than me. Question is, could they sell more with a stand alone? Would they be taken more seriously by well heeled buyers?

If they do give up on the idea of stand alone they have to do more at the Hyundai dealers to get the word out too. Most give no idea they sell Genesis too.

 

[PMCErnie]

True, dual dealerships have been around longer than me. Question is, could they sell more with a stand alone? Would they be taken more seriously by well heeled buyers?

If they do give up on the idea of stand alone they have to do more at the Hyundai dealers to get the word out too. Most give no idea they sell Genesis too.

No doubt current “dual” dealers are being inhibited by Genesis from hanging signs outside that say they sell Genesis vehicles. This battle has been raging for 4 (?) years.

Dealers have contracts with manufacturers. I don’t know what the contracts say. The courts will eventually sort it out, unless both sides reach a settlement someday.

 

[DV_hat]

There is no doubt they've been selling fairly well. But as their prices begin to creep up, like they have for this new generation (not that far from German Competitors), they're going to have to change the perception to continue to grow.

I still get the same feedback when I bring up the brand among luxury owners - "it's a Hyundai". I can bring up the Lexus/Infiniti/Acura arguments but the one thing those brands have in their favor is the "full luxury experience". Most of their lineups are also priced well below the German competition while Genesis is starting to creep into the German territory as far as pricing across the board.

In the DC area we have about 8 Genesis dealers who all seem to be doing well. We also have a few Hyundai dealers who carry Genesis and display them on their showroom floors. I get my service done at one of these and have never seen a customer even actively shop, let alone drive off the Hyundai lot with a Genesis. A lot of people look at them but no one makes the move. On the other hand the few times I've visited the Genesis lots, they've been pretty busy.

To generalize, most people walking into a Hyundai dealership aren't looking to spend Genesis money. Most people looking to spend Genesis money wouldn't walk into a Hyundai dealership. (Talking about this new Genesis money of course).

 

[Backslack]

There is no doubt they've been selling fairly well.

I'm not sure what gave you that impression seeing as every Genesis vehicle currently being sold sits near the bottom of their respective sales segments. Most people have no idea the brand even exists. I do agree that without a dealership network, the brand won't be able to make much of an impact.

Going upscale is not a bad strategy. And to be honest, Genesis's newest offerings are far more upscale than anything from Acura/Infiniti and most of Lexus. They're correct to charge more. In the luxury segment, value isn't the highest factor. But if they can't even set up a dealership network, it's meaningless regardless of how they price their vehicles.

 

[Backslack]

Looks like the dealer lawsuits were successful enough to at least halt the Keystone incentive program for six months. We won't be seeing those standalone facilities for a while.

Genesis' delayed relaunch back on track with new crossovers, upcoming EV

Genesis planned to relaunch last year, but the pandemic got in the way. Now that the GV80 crossover finally arrived on dealer lots in December, it's ready to try again.

www.autonews.com

Indeed, with Genesis dealers still operating out of Hyundai stores until standalone dealerships are built, juggling the expected volume gains for both brands could be complicated. Hyundai has a new electric crossover coming this year as part of its new Ioniq subbrand, along with the new Santa Cruz compact pickup.

"Quite frankly, it makes it challenging for the retailer," Lanzavecchia said. "Right now, we're finding so much interest and demand for both the G80 sedan and the GV80, it's stretching the capacity of many Genesis retailers who were just scaling." up their exclusive Genesis staffing. It's a great problem to have. "

And some good came from the challenge of the coronavirus sales experience, Del Rosso and Lanzavecchia agree.

Genesis was already fully engaged in valet maintenance service, with pickup and drop-off being used by 85 percent of its buyers. Dealers extended that concept to their sales process and learned lessons from it to address customers' demand for at-home services.

Lanzavecchia also gives Genesis credit for suspending its Keystone facility program for six months. The New Jersey dealer supports the program and is building a standalone store.

But the program remains controversial. Some dealers say that tying incentives compensation to store upgrades, especially given the brand's low volume, is coercive. The focus should remain on digital retailing, they say.