Illinois says my Genesis is a Hyundai

[Anthony Cipriano]

I thought there were no dedicated Genesis dealerships. Is that right?

 

[Mark_888]

I thought there were no dedicated Genesis dealerships. Is that right?

There are a few, but not many right now. However. the 100 selected Genesis dealers (the only ones who will be able to sell 2019 models) will have to build separate dealerships within some time frame specified by Genesis Motors USA. That is the current plan, anyway.

Besides, one can have two completely separate brands in the same dealership, so that is not even relevant IMO.

 

[Anthony Cipriano]

There are a few, but not many right now. However. the 100 selected Genesis dealers (the only ones who will be able to sell 2019 models) will have to build separate dealerships within some time frame specified by Genesis Motors USA. That is the current plan, anyway.

Besides, one can have two completely separate brands in the same dealership, so that is not even relevant IMO.

They did technically launch the brand without a single dealership. A few dealers took it upon themselves to open a separate showroom. That's what I heard anyway.

 

[Mark_888]

They did technically launch the brand without a single dealership. A few dealers took it upon themselves to open a separate showroom. That's what I heard anyway.

They were strongly encouraged to open separate (or sort of separate) showrooms by Genesis Motors. It wasn't on their own. But some flexibility had to be made in what Hyundai could require depending on realities of the existing buildings and land for the dealership.

This really goes back to the Hyundai Equus introduced in 2011, which only about 50% of Hyundai dealers were allowed to sell (and which had concierge service like Genesis Motors does now). That is when Hyundai Motor America made the push for a separate showroom, which morphed into the Genesis showroom for those who already had an Equus showroom.

Eventually, they have decided to have completely separate dealerships, initially limited to about 100 in the USA. These separate dealerships will take some to build out, and not sure what the actual deadline is for completion. Only the 100 Genesis Motors dealers will be able to sell the Genesis brand starting with model year 2019 (later this year).

Any 2017-2018 model year Genesis Motors vehicles will continue to be sold and serviced at existing dealers that are selling them now.

 

[EdP]

They were strongly encouraged to open separate (or sort of separate) showrooms by Genesis Motors. It wasn't on their own. But some flexibility had to be made in what Hyundai could require depending on realities of the existing buildings and land for the dealership.

This really goes back to the Hyundai Equus introduced in 2011, which only about 50% of Hyundai dealers were allowed to sell (and which had concierge service like Genesis Motors does now). That is when Hyundai Motor America made the push for a separate showroom, which morphed into the Genesis showroom for those who already had an Equus showroom.

My dealer does not have the space to add to the showroom. They did enclose the service drop off area though and you are greeted when you enter. Hyundai owners benefit also. I don't know how it is at the other Hyundai location they have. My guess is he will be one of the first to have a stand alone as he has over 45 different brands already. Every brand except Subaru.

 

[larrymg1]

They were strongly encouraged to open separate (or sort of separate) showrooms by Genesis Motors. It wasn't on their own. But some flexibility had to be made in what Hyundai could require depending on realities of the existing buildings and land for the dealership.

This really goes back to the Hyundai Equus introduced in 2011, which only about 50% of Hyundai dealers were allowed to sell (and which had concierge service like Genesis Motors does now). That is when Hyundai Motor America made the push for a separate showroom, which morphed into the Genesis showroom for those who already had an Equus showroom.

Eventually, they have decided to have completely separate dealerships, initially limited to about 100 in the USA. These separate dealerships will take some to build out, and not sure what the actual deadline is for completion. Only the 100 Genesis Motors dealers will be able to sell the Genesis brand starting with model year 2019 (later this year).

Any 2017-2018 model year Genesis Motors vehicles will continue to be sold and serviced at existing dealers that are selling them now.

Based on the email I received from the Sales Manager of my Hyundai dealership there may a potential hiccup in the 100 select Genesis dealerships being finalized and moving forward with stand alone stores.
"Mr. Grimm,
Genesis is not an official brand as of now until Model Year 2019. Within the new Genesis Motors America agreements 90% or more dealers have to accept the settlement offer. The deadline is today, 04/02, and less than 25% of the dealers have accepted. So it appears the launch of Genesis as a brand will be delayed for the indefinite future.
New Car Sales Manager
Hyundai"

 

[lt2211]

Genesis is not an official brand as of now until Model Year 2019.

Ouch!!! not really sure what that means as 2017 and 18 models all carry the Genesis Badge. I had heard that many Hyundai dealerships were unhappy with the methods, payments etc. involved in getting a new Genesis dealership. Twenty-five percent is so low, it almost sounds like scrap the whole plan time and start over. Not good news for sure.

 

[Mark_888]

Based on the email I received from the Sales Manager of my Hyundai dealership there may a potential hiccup in the 100 select Genesis dealerships being finalized and moving forward with stand alone stores.
"Mr. Grimm,
Genesis is not an official brand as of now until Model Year 2019. Within the new Genesis Motors America agreements 90% or more dealers have to accept the settlement offer. The deadline is today, 04/02, and less than 25% of the dealers have accepted. So it appears the launch of Genesis as a brand will be delayed for the indefinite future.
Adam Friedman
New Car Sales Manager
Jim Hudson Hyundai"

Is that a settlement to the hundreds of Hyundai dealers who sold 2017-2018 G80's and G90's, but that will not be part of the 100 Genesis dealers starting in 2019, or a settlement for the 100 Genesis dealers going forward?

What a frickin mess.

 

[EdP]

Genesis is not an official brand as of now until Model Year 2019. Within the new Genesis Motors America agreements 90% or more dealers have to accept the settlement offer. The deadline is today, 04/02, and less than 25% of the dealers have accepted. So it appears the launch of Genesis as a brand will be delayed for the indefinite future.

Well, somebodys got some 'splainin to do. We all going to get Hyundai badges to stick on our cars?

 

[lt2211]

Well, somebodys got some 'splainin to do.

Yep, they do. I spoke to the Genesis manager, at a large Chicago area Hyundai dealer and he did not see any huge problem, just "growing pains" he indicated the dealers met recently in Texas and were working on a solution to the problem. An agreement could be reached in the near future. I asked him about the idea that the launch of Genesis as a brand will be delayed for the indefinite future. Not likely, the problems can/will be fixed. Apparently a large part of the problem, is large vs small dealership interests.

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[larrymg1]

Is that a settlement to the hundreds of Hyundai dealers who sold 2017-2018 G80's and G90's, but that will not be part of the 100 Genesis dealers starting in 2019, or a settlement for the 100 Genesis dealers going forward?

What a frickin mess.

The settlement would effect both. All Hyundai dealers had to sign off on the proposed new Genesis dealership plan and the compensation plan for the Hyundai dealer's who were not getting a Genesis dealership awarded to them.

- - - Updated - - -

Yep, they do. I spoke to the Genesis manager, at a large Chicago area Hyundai dealer and he did not see any huge problem, just "growing pains" he indicated the dealers met recently in Texas and were working on a solution to the problem. An agreement could be reached in the near future. I asked him about the idea that the launch of Genesis as a brand will be delayed for the indefinite future. Not likely, the problems can/will be fixed. Apparently a large part of the problem, is large vs small dealership interests.

The manager of my dealership felt the meeting in Texas was contentious and deeply divided. The areas involving compensation for non-approved dealers and the number and allocation of new Genesis dealerships are at the forefront. My dealership is far from small with 6 different dealership locations and an already available adjacent facility for a Genesis showroom next to their Hyundai facilities.

 

[Mark_888]

... an already available adjacent facility for a Genesis showroom next to their Hyundai facilities.

I thought Genesis Motors USA wanted completely separate dealerships, not just separate showrooms.

 

[Anthony Cipriano]

Genesis is not an official brand

What more needs to be discussed? We now have the reason why the process was/is broken.

 

[Mark_888]

What more needs to be discussed? We now have the reason why the process was/is broken.

They could have separate brands sold at existing Hyundai dealerships, so that it the G80 and G90 were titled as a Genesis Motors brand. That's how it worked the first two years in some cases.

I do agree that the dealer problems discussed above shows just how uncoordinated Genesis Motors USA is.

 

[larrymg1]

I thought Genesis Motors USA wanted completely separate dealerships, not just separate showrooms.

My Hyundai dealer does have a separate stand alone facility that would be a completely separate operation. It was a previous dealership that is currently unused.

 

[EdP]

My Hyundai dealer does have a separate stand alone facility that would be a completely separate operation. It was a previous dealership that is currently unused.

One down, 99 to go. One problem I see with stand alone is the volume of sales. Just does not seem to be enough to support a facility and stock it with parts and people just yet. Once there is a line with an SUV it may happen and perhaps that is the plan before groundbreaking for a new building. Perhaps it will be done in stages. Stage one is to select 100 dealers and funnel all sales through them at present locations until a new facility can be supported.

 

[Mcc]

One down, 99 to go. One problem I see with stand alone is the volume of sales. Just does not seem to be enough to support a facility and stock it with parts and people just yet. Once there is a line with an SUV it may happen and perhaps that is the plan before groundbreaking for a new building. Perhaps it will be done in stages. Stage one is to select 100 dealers and funnel all sales through them at present locations until a new facility can be supported.

Precisely rght, everyone who thought or deduced or suspected what was going on and how to fix it don’t really know the whole story. In fact whatever is happening now is being told by dealers with different eyes and with different agendas. Each explanation is going to be somewhat slanted. So let’s just see how things play out and maybe more facts not opinions being passed off as facts will surface.

 

[Mark_888]

Precisely rght, everyone who thought or deduced or suspected what was going on and how to fix it don’t really know the whole story.

That's not accurate. Just about everyone on this forum understands that the 100 Genesis dealers will need some time to build a separate dealership (maybe a year or two), but that is apparently the desire of Genesis Motors to have them separate from existing Hyundai dealerships. No one thought all 100 dealers will have completely separate facilities ready to go on day one of the 2019 G70 release this summer.

The issue of whether Genesis is a separate brand, or whether it will have completely separate dealership facilities, are two different issues. There is no reason why Genesis Motors brand could not be sold starting in 2017 at existing Hyundai dealerships. In fact, there is no reason why they cannot do that permanently, other than someone at Genesis Motors USA thought they needed to have completely separate dealership facilities.

 

[Mcc]

That's not accurate. Just about everyone on this forum understands that the 100 Genesis dealers will need some time to build a separate dealership (maybe a year or two), but that is apparently the desire of Genesis Motors to have them separate from existing Hyundai dealerships. No one thought all 100 dealers will have completely separate facilities ready to go on day one of the 2019 G70 release this summer.

The issue of whether Genesis is a separate brand, or whether it will have completely separate dealership facilities, are two different issues. There is no reason why Genesis Motors brand could not be sold starting in 2017 at existing Hyundai dealerships. In fact, there is no reason why they cannot do that permanently, other than someone at Genesis Motors USA thought they needed to have completely separate dealership facilities.

Once again, opinion and supposition presented as fact. You meant no reason that you could think of based on your limited outsider knowledge. Just say it like it is and you wont get any argument.

 

[Mark_888]

Once again, opinion and supposition presented as fact. You meant no reason that you could think of based on your limited outsider knowledge. Just say it like it is and you wont get any argument.

No sir, that is not accurate.

It is a fact that originally Hyundai decided to sell 2017-2018 Genesis branded G80 and G90 vehicles at Hyundai dealers. This was well documented in the press quoting Hyundai executives back in 2016, when the 2017 models were released. At that time, they said they would most likely eventually have separate dealerships, but not sure how long that would take. The executives said there would be "separate" showrooms, etc for Genesis, and to some degree that was true (like the Equus), but the amount of "separateness" varied from dealer to dealer (based on my observation at 3 different dealers).

Then this year, Genesis Motors USA executives were quoted in the press as saying they would only have about 100 Genesis dealers that sold the 2019 models, and they wanted to accelerate the move to separate dealerships. This is another fact reported in the press, verified by several members above who heard it from their local dealer.

Another fact is that it usually takes some time to obtain land, hire architects to design a building, get building permits, and to build a dealership facility, etc. So many of the 100 Genesis dealerships will still be operating from their Hyundai location when the 2019 G70 is released this summer. Some Genesis dealerships may be up and running by that time as completely separate from Hyundai (some members have reported that they have completely separate Genesis dealerships in their city).

What part of this supposition or opinion?

My comments about selling two different brands at the same dealership facility are clearly fact, since that is quite common in smaller towns all around the USA, and that is exactly what Hyundai and Genesis did for their 2017-2018 models at hundreds of dealerships.