standalone dealership -- interesting comment to me by my service advisor

[steveinarizona]

I bought my GV60P at what was then called Genesis of North Scottsdale. There is another Hyundai dealership in southern Scottsdale. Apparently that dealership decided it was not in its best interest to build a standalone Genesis dealership and dropped out of Genesis (hence my dealership is now "Genesis of Scottsdale". I was speaking with my service advisor and commented to him that it surprised me that the other Hyundai dealership in Scottsdale was not a Genesis dealership. He said that it actually hurt his business (at least in the short term) because all the Genesis customers who bought their cars at the other Hyundai dealership were now forced to come to his shop for service overwhelming his team.

We have all seen the delays in getting appointments for service and the usual explanations of hard to find techs, etc. But it did not occur to me that there could also be an impact because of some Genesis dealers leaving the brand. But it does make sense (although why the other Hyundai dealership decided to leave the prime luxury market I don't understand). My dealership so far has been very good. My car is in for its 15K maintenance and a recall. This is the third maintenance appointment and I have received the following loaners all essentially new: Electrified G80. ICE GV80 and ICE G80 (today's). Other than wishing that the loaners were all EVs, Genesis of Scottsdale has provided me with excellent loaners.

 

[EdP]

We have all seen the delays in getting appointments for service and the usual explanations of hard to find techs, etc. But it did not occur to me that there could also be an impact because of some Genesis dealers leaving the brand. But it does make sense (although why the other Hyundai dealership decided to leave the prime luxury market I don't understand). My dealership so far has been very good.

Did the dealer decide, or did Genesis decide for them? Corporate has been wanting stand alone dealers for years and finally are heading that way. Can the area market support two of them?

 

[steveinarizona]

Did the dealer decide, or did Genesis decide for them? Corporate has been wanting stand alone dealers for years and finally are heading that way. Can the area market support two of them?

My understanding is that because of the lawsuit, all the Hyundai dealerships could qualify as Genesis dealerships if they wanted to and were willing to make any necessary investments. So the dealer decided.

As to the market, yes...the market can support two. For example, near the Genesis dealership in North scottsdale is the Mercedes dealership; near the Hyundai dealership that chose not to be a Genesis dealership is another Mercedes dealership. The prime high end areas of greater Phoenix are Scottsdale and Paradise Valley. Here is a page from the Genesis of Scottsdale dealership focused on the other market:

Paradise Valley

Paradise Valley

www.genesisofscottsdale.com

As I said, I don't understand why the other store chose not to continue to be a Genesis dealership. As one can see from the web page, it is a desirable market and the company does understand luxury brands as it is one of the area BMW dealers. Genesis of Scottsdale now has its sales functions in a showroom at a high end outdoor mall, Scottsdale Quarter, and is constructing a service building next to the Hyundai dealership.

 

[EdP]

My understanding is that because of the lawsuit, all the Hyundai dealerships could qualify as Genesis dealerships if they wanted to and were willing to make any necessary investments. So the dealer decided.

Maybe. Depends on the necessary investment and terms and conditions, Easy enough for Genesis to shut out some.

 

[srobak]

I know the new, standalone buildings that corporate wants dealers to build costs MILLIONS of dollars. Not many standing dealerships are willing to make that kind of an investment on what is in reality a very niche brand.

This is yet another mistake by mother Hyundai in the establishment of the brand - and it very much shoots them in foot.

 

[FastCars]

Can't think of any of these 'lux' spin-offs that don't require the dealer build an appropriate facility (Lexis, Acura, Infiniti etc.). With the purchase of a high-end car comes an expectation of better service & facilities and you can't have both under 1 roof or you will have the basic buyers bitching about how much better the lux car owners are being treated.

I know we hoped for years that Atlantic Nissan in Ocala would open an Infiniti store and they tried several times, but Infiniti insisted it had to have it's own facilities (showroom, customer lounge & service). Atlantic wanted to use the existing Nissan service & customer areas and refirb the old Mitsubishi building for the Infiniti showroom. Never happened & they eventually moved on.

Like the Scottsdale example, the 2 Genesis dealers in Tampa decided to bail & now there is no longer a Genesis store in Tampa. Seems weird as it's a huge market, but those 2 dealers obviously decided it was not worth the cost at this time.

 

[EdP]

Can't think of any of these 'lux' spin-offs that don't require the dealer build an appropriate facility (Lexis, Acura, Infiniti etc.). With the purchase of a high-end car comes an expectation of better service & facilities and you can't have both under 1 roof or you will have the basic buyers bitching about how much better the lux car owners are being treated.

I know we hoped for years that Atlantic Nissan in Ocala would open an Infiniti store and they tried several times, but Infiniti insisted it had to have it's own facilities (showroom, customer lounge & service). Atlantic wanted to use the existing Nissan service & customer areas and refirb the old Mitsubishi building for the Infiniti showroom. Never happened & they eventually moved on.

Like the Scottsdale example, the 2 Genesis dealers in Tampa decided to bail & now there is no longer a Genesis store in Tampa. Seems weird as it's a huge market, but those 2 dealers obviously decided it was not worth the cost at this time.

The real problem goes back 15+ years ago. Genesis was just another model of Hyundai. At some point they thought to spin it off as a separate brand, like Toyota did with Lexus. It sounds simple, but it was not. Franchise laws killed the plan.
I do know, it takes quite a few car sales to pay for a dealership. I think they will be scarce for a while yet. Can Tampa support one? Maybe, but they have competition from dealers in St. Pete, Clearwater, Bradenton, Sarasota.

 

[srobak]

Can't think of any of these 'lux' spin-offs that don't require the dealer build an appropriate facility (Lexis, Acura, Infiniti etc.). With the purchase of a high-end car comes an expectation of better service & facilities and you can't have both under 1 roof or you will have the basic buyers bitching about how much better the lux car owners are being treated.

Like the Scottsdale example, the 2 Genesis dealers in Tampa decided to bail & now there is no longer a Genesis store in Tampa. Seems weird as it's a huge market, but those 2 dealers obviously decided it was not worth the cost at this time.

Understand - I am not saying Genny shouldn't have standalones. They absolutely should. But the manner in which this has been done over the years with the soft launching (1 model car), killing of the coupe at the same time, slow-rolling the introductions of new models and then NOT allowing current/warranteed owners to phase out of being serviced by Hyundai shops has really resulted in them screwing early and mid adopters of the brand - as well as the dealerships.

At least when Lexus and the other brands did have more than 1 model when they came out. But I also seem to recall Nissan actually doing something similar to Genny sharing dealerships at first? Though they certainly ripped through it a lot quicker into the standalone model. Also pretty sure there were a lot of significant mfg incentives & subsidies going to the dealers of those brands vs. the trainwreck that has been Genesis... and let's not forget the lawsuits.

Also - I believe there are a couple of dealers in the Tampa area that are under construction... Gettel in Bradenton and one in Clearwater? Until the brand gets much more established and sales go up significantly - that's probably all the more saturation the Tampa area can support.

 

[steveinarizona]

Also - I believe there are a couple of dealers in the Tampa area that are under construction... Gettel in Bradenton and one in Clearwater? Until the brand gets much more established and sales go up significantly - that's probably all the more saturation the Tampa area can support.

I think that might be one of the differences in our markets. I see lots and lots of Genesis vehicles around where I live. Probably as common as BMWs, Audis, Lexi and Mercedes.

 

[FastCars]

Also - I believe there are a couple of dealers in the Tampa area that are under construction... Gettel in Bradenton and one in Clearwater? Until the brand gets much more established and sales go up significantly - that's probably all the more saturation the Tampa area can support.

There are still dealers in the surrounding areas - Clearwater, St. Pete & Lakeland. Multiple dealers in Orlando (with Clermont just opening their new store).
There is a new store underway in Ocala (closest loc to me), but that is a Jenkins group store and they s^ck big time, so I won't be going there.
Hoping between Lakeland (where I bought the car) & Clermont's new store I'll be 'covered' for service !

Just seems odd that there is nothing in Tampa/Hillsborough, that covers a lot of turf and a huge population with big $$.

______________________________

Help support this site so it can continue supporting you!

 

[EdP]

There are still dealers in the surrounding areas - Clearwater, St. Pete & Lakeland. Multiple dealers in Orlando (with Clermont just opening their new store).
There is a new store underway in Ocala (closest loc to me), but that is a Jenkins group store and they s^ck big time, so I won't be going there.
Hoping between Lakeland (where I bought the car) & Clermont's new store I'll be 'covered' for service !

Just seems odd that there is nothing in Tampa/Hillsborough, that covers a lot of turf and a huge population with big $$.

This would be a good spot, is 1.2 acres enough? And it is only $10 million.

Tampa, FL Land for Sale - 884 Properties

Find land for sale in Tampa, FL by acreage, price, and features. Filter thousands of listings and use maps to explore and buy land, lots, and properties.

www.landsearch.com

Finding a spot zoned for it certainly is not easy or cheap.

 

[FastCars]

This would be a good spot, is 1.2 acres enough? And it is only $10 million.

Tampa, FL Land for Sale - 884 Properties

Find land for sale in Tampa, FL by acreage, price, and features. Filter thousands of listings and use maps to explore and buy land, lots, and properties.

www.landsearch.com

Finding a spot zoned for it certainly is not easy or cheap.

WAY too small, besides I'm planning on snagging that bad boy for my retirement mansion

 

[srobak]

This would be a good spot, is 1.2 acres enough? And it is only $10 million.

You would waste waterfront property on a car dealership?

 

[EdP]

You would waste waterfront property on a car dealership?

Sure. You want to give customers a luxury experience

 

[tarhoosier]

They found land on my property in Florida!

 

[KimL]

There are still dealers in the surrounding areas - Clearwater, St. Pete & Lakeland. Multiple dealers in Orlando (with Clermont just opening their new store).
There is a new store underway in Ocala (closest loc to me), but that is a Jenkins group store and they s^ck big time, so I won't be going there.
Hoping between Lakeland (where I bought the car) & Clermont's new store I'll be 'covered' for service !

Just seems odd that there is nothing in Tampa/Hillsborough, that covers a lot of turf and a huge population with big $$.

You are correct, Genesis of Central Florida is open. I had the chance to walk through and see how different the brand operates. It's very exciting to have the stand alone dealership experience and concierge service that goes with the brand.
There is a Grand Opening in 2 weeks, I'd love to send you an invitation.

 

[FastCars]

You are correct, Genesis of Central Florida is open. I had the chance to walk through and see how different the brand operates. It's very exciting to have the stand alone dealership experience and concierge service that goes with the brand.
There is a Grand Opening in 2 weeks, I'd love to send you an invitation.

If I'm in town, I'd be interested in attending & seeing the completed store ! Hopefully the traffic on the turnpike construction won't be as bad as it was in Dec.
Sent you a PM.

 

[KimL]

If I'm in town, I'd be interested in attending & seeing the completed store ! Hopefully the traffic on the turnpike construction won't be as bad as it was in Dec.
Sent you a PM.

I completely understand! The construction to the north of our exit is even worse, heading to Leesburg. The dealership is quite impressive.
Invite is in your inbox.

 

[FastCars]

I completely understand! The construction to the north of our exit is even worse, heading to Leesburg. The dealership is quite impressive.
Invite is in your inbox.

Yeah, I'm coming from that direction (west coast) and I've experienced (been the victim of ??) that construction.
Suppose to run thru 2026, but should get better when they complete the 1 side, I hope anyway !!