What the Hell Is Happening With Genesis' Dealer Network Strategy?

what the hell is happening with genesis dealer network strategy

Ever since Hyundai launched Genesis as a separate luxury brand, there’s been plenty of confusion as to how to distribute its vehicles. The company initially said Genesis would have an entirely separate U.S. dealer network within three years. Then it said existing Hyundai retailers could continue to sell luxury models if they met a certain criteria, but noted many would become ineligible as standalone stores became the norm.

Now Genesis is saying all Hyundai dealers are in the running, but they’ll need to have separate facilities for the luxury brand if they want to sell them. While the change isn’t drastic, it’s the third time the brand’s parent company has revised its dealer strategy, leaving us confused as to what the automaker’s plan was all along.

Originally, the idea was to shift product to 100 stores in 48 markets, with an emphasis on urban markets seen as being more willing to purchase such vehicles. “The reality is, many, many luxury customers tell us they love our products, they’re amazing, but I’m not going into a Hyundai store to buy it,” explained Genesis Motor America boss Erwin Raphael last October. “It’s really hard to have the two cultures cohabitating.”

In 2018, Hyundai Motor America announced that only 350 existing franchises would be eligible for the new stores. However, they could take a buyout if they didn’t want to sell the cars. But plenty of them did, throwing a modestly sized wrench into the 100-store strategy.

This week, Automotive News reported that this resulted in the company tweaking its strategy to make every single dealership in North America suddenly eligible. That opens the network up to more markets and the possibility of additional stores. However, Genesis also said 2019 models will only be wholesaled to newly franchised Genesis retailers — meaning those that received approval with separate facilities for the luxury brand.

So which is it — the scalpel or the sledgehammer? Does Genesis Motors want fewer stores in carefully selected markets or widespread distribution across the country? It sounds like a little bit of both. The manufacturer still wants dealerships to take the steps necessary to separate Genesis vehicles from the rest of the lot, but it doesn’t seem as interested in pruning the number of locations where that takes place.

[Image: Genesis Motors]

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  • John Horner John Horner on May 03, 2018

    Maybe Hyundai can get creative by teaming up with NA Honda and make all Acura dealers Acura-Genesis dealers. There is currently no product overlap between those two brands.

  • EAM3 EAM3 on May 03, 2018

    Here's my problem with the Genesis. The car? None, dollar for dollar you can't beat it. My dad loved every second of owning the car. The dealer network? Where do we begin? From my father's experience with his Genesis, the car really should be sold from an entirely separate dealership. The general attitude at Hyundai dealers (at least in south Florida) is straight from the 1980s playbook. From sales tricks to sell useless add-ons to the service department where they try to sell you a fuel injection service for nearly $300 on a car with 15K miles.

  • Ltcmgm78 I must laugh because this is an expansion of the old question of why car manufacturers don't build less expensive cars. There's no money in it! As long as virtue signalers have the long green to buy the pricier EVs, there won't be any affordable ones until most of the demand for the expensive ones are met. Economics, you know. New technologies always progress this way. The future Chevy Vega on the Ultium platform is a long way off.
  • Daniel J Also, the additional 20K is spread out over a loan, which could end up closer to 24K.
  • Wolfwagen When will GM and Dodge/Ram come out with a BOF 2 door sport utility? Im not one that jumps on the first year new vehicle bandwagon, but for a new Ramcharger, I'd sleep out in front of a dealership for days to be first in line for preordering (or infront of my computer for hours)
  • Wolfwagen Is it me or does the front end look like a smaller silverado?
  • MQHokie Who decided moving all headlight control to the touchscreen was a good idea? I assume this means no manual high beam control anymore, so you're at the mercy of the automatic system that gets fooled by street lights, porch lights, sign reflections etc. Not to mention a good software bug or a light sensor failure might render the lights inoperable. With all the restrictions the NHTSA has placed on USA headlight design over the years, it amazes me that this is even legal.
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