Hyundai Dealers Put on Notice: It's Time for Genesis, but Not Everyone Gets to Play

Steph Willems
by Steph Willems

Hyundai Motor America and its U.S. Genesis division sent messages to Hyundai dealers this week, alerting them to the formation of an independent Genesis dealer network. Hyundai’s recently created luxury marque wants space between it and its value-focused sister division, and that means the need for standalone stores.

Shared showrooms simply won’t cut it anymore.

Right now, Genesis customers in the United States can purchase models at roughly 350 Hyundai dealers, but not for long. The plan calls for just 100 standalone stores as a starting point. If you’re a Hyundai dealer with dreams of selling a higher class of vehicles, this is your opportunity — but your chances of being selected might not be as high as those dealers already selling the brand.

According to Genesis, “certain dealers who are parties to the Genesis Participation Agreement (GPA), currently doing business in defined key markets, will be given the first opportunity to apply for the Genesis franchise.”

Dealers that signed on to the GPA agreed to set up Genesis showrooms inside their Hyundai store. Naturally, those locations get first dibs.

“At Genesis, we believe in putting our customers first and giving them a proper ownership experience,” said Erwin Raphael, General Manager of Genesis Motor America, in a statement. “To ensure that happens, we need to take this next step in the separation of the Genesis brand from our parent company.”

Establishing a “right-sized” dealer network is key for the brand’s long-term health, Raphael said.

Right now, you’ll only find two models under the Genesis banner — the midsize G80 (formerly the Hyundai Genesis) and full-size G90, both rear- or all-wheel-drive vehicles. A smaller G70 sedan arrives this year, with crucial crossovers in the pipe. Until a full (and diverse) lineup materializes in Genesis showrooms, the brand needs to proceed with caution. Sedans, especially those bearing a relatively unfamiliar badge, aren’t a guaranteed draw, especially in today’s market.

Genesis sales kicked off in late summer, 2016. Last year, some 20,594 Americans took home a Genesis-badged vehicle, with the bulk of those buyers choosing the G80. December 2017 was the best sales month thus far.

[Images: Genesis Motors]

Steph Willems
Steph Willems

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  • Big Al from Oz Big Al from Oz on Feb 01, 2018

    I can see Hyundai want to earn more from the Genesis brand by removing them away from the Hyundai brand. This will take a few years to complete, I don't envisage any problem with this as Hyundai are building a good reputable brand. I do read many comments on this site degrading the Koreans, but of late they are putting out some incredibly good vehicles. All they need to add to their vehicle lineup is a good competitive midsizer and a true off road SUV, both with diesels of course. Hyundai or more correctly Genesis needs to get hold of the Telluride, spruce it up, then drop the blown 3.3 from the Stinger into it and sell it.

  • Sub-600 Sub-600 on Feb 01, 2018

    G80 buyers aren’t cross shopping Elantras?

  • Chris P Bacon I don't care either way, the employees have the right to organize, and I'm never going to buy a VW. But.... It would be interesting if the media (HINT HINT) would be able to provide a detailed look at what (if anything) the VW workers gain by unionizing. There will be dues to pay. How much? I bet the current policies, pay and benefits mirror other auto companies. When all is said and done an the first contract signed, my money is on the UAW to be he only ones who really come out ahead. That leads into my next comment. Once a union is voted onto the property, it is almost impossible to get rid of them. Even if the membership feels the union doesn't have their best interests in mind, the hurdles to get rid of them are too high. There were a lot of promises made by the UAW, even if they don't deliver, they'll be in Chattanooga even if the membership decides they made a mistake.
  • 1995 SC How bout those steel tariffs. Wonder if everyone falls into the same camp with respect to supporting/opposing them as they did on the auto tariffs a few weeks ago. Doubt it. Wonder Why that would be?
  • Lorenzo Nice going! They eliminated the "5" numbers on the speedometer so they could get it to read up to 180 mph. The speed limit is 65? You have to guess one quarter of the needle distance between 60 and 80. Virtually every state has 55, 65, and 75 mph speed limits, not to mention urban areas where 25, 35, and 45 mph limits are common. All that guesswork to display a maximum speed the driver will never reach.
  • Norman Stansfield Automation will make this irrelevant.
  • Lorenzo Motor sports is dead. It was killed by greed.