As Inventory Dwindles, Genesis Prepares to Turn It On Again

Steph Willems
by Steph Willems
as inventory dwindles genesis prepares to turn it on again

If you noticed your neighbor adding a glistening new Genesis model (the midsized one or the bigger one) to their driveway in the past month, you’re a member of a very small group.

Genesis, the luxury marque born of Hyundai, didn’t sell many vehicles in August, but that’s all part of the plan. The brand’s executive director claims there’s less than a month’s worth of vehicles currently in the U.S., but once those ships arrive, look out. Actually, a better way of phrasing that is: “prepare yourself for things to occur in a gradual and measured fashion.”

After seemingly continuous revamps of the fledgling brand’s dealer model, head office has settled on a final plan — one that won’t be ready by the time the 2019 models arrive. Like the brand itself, it’s a work in progress, but at least there’s a game plan.

In July, the brand’s senior group manager of PR told us that, after Genesis receives a distributor license in each U.S. state, dealers are asked to make a choice: accept a compensation offer and hand over their ability to sell Genesis vehicles, or apply to become a Genesis retailer. No one’s forced to build a standalone Genesis store a comfortable distance away from the Hyundai showroom, but Genesis would definitely prefer it. Either way, those stores won’t be ready in time for the 2019s.

The overall goal is to whittle down the roughly 850 Genesis-selling dealers to a more exclusive, manageable number covering key markets, though not as few as in an earlier plan. Hyundai projects the number of retailers to drop to 400 within the next half-year, but Genesis Executive Director Erwin Raphael wants a lower number.

“Four hundred is still higher than what is ideal,” Raphael told Wards Auto. “I think (ultimately) that will come down,” he said, adding that some dealers won’t remain profitable at projected sales volumes.

“It just doesn’t compute to 400.”

Not only will standalone stores remain a far-off proposition by the time the expanded 2019 lineup appears (Genesis adds the smaller G70 sport sedan to its car-only stable this fall), but Genesis doesn’t expect to have its full roster of state licenses and signed-on dealers until February. The brand has licenses for 40 states right now.

Meanwhile, the first 2019 models should begin appearing later this month at a small number of dealers.

“By the end of the year, we will be hitting on all cylinders,” Raphael said.

Genesis sales in the U.S. last month totalled 613 vehicles, continuing a steep decline seen in July. The brand cut off imports in March to drain inventory in time for its sort-of dealer network launch, which will go ahead with only 2019 models on the lot.

[Image: Genesis Motors]

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  • Sportyaccordy Sportyaccordy on Sep 10, 2018

    Clock keeps ticking, still no Genesis crossover. I wince to think at how many hundreds of thousands of high margin sales Hyundai missed in its hesitation to build the vehicles they really should have launched the brand with. Yes I know G70 save the manuals real drivers car yadda yadda. Once all the dust settles and nobody buys these things and we are back to reality it's all going to be too late. Genesis cars are excellent- I was wowed by the polish and refinement of an original Hyundai Genesis sedan- but they are the wrong cars for the market and pretty much have been from launch. That product mismatch has and will continue to undermine the brand's success.

    • See 6 previous
    • Bd2 Bd2 on Sep 13, 2018

      @JohnTaurus Again, CUVs based on WHICH platform? Already gave the reasons why it was unfeasible to use any of the outgoing platforms (be they FWD or RWD) and why Genesis is developing a new RWD platform to underpin its CUVs, as well as the next gen sedan lineup. And again, it would have all been a MOOT point, as any profits they would have made out of CUV sales would have gone right back into even larger compensation packages (some are getting more than $4 million in compensation). That's a big reason why the launch of the G70 and the 2019MY G80 and G90 have been delayed. Genesis only wants the dealerships that have signed on to go forward w/ Genesis to get the G70 and other 2019 models, otherwise, they would have to pay the dealerships not going ahead w/ Genesis even more $$ in compensation.

  • Jfk-usaf Jfk-usaf on Sep 11, 2018

    because what the market is speaking to right now is a higher end car only line up.....

  • MaintenanceCosts Despite my hostile comments above I really can't wait to see a video of one of these at the strip. A production car running mid-eights is just bats. I just hope that at least one owner lets it happen, rather than offloading the car from the trailer straight into a helium-filled bag that goes into a dark secured warehouse until Barrett-Jackson 2056.
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  • Bullnuke An acquaintance of mine 50+ years ago who was attending MIT (until General Hershey's folks sent him his "Greetings" letter) converted an Austin Mini from its staid 4 cylinder to an electric motored fuel cell vehicle. It was done as a project during his progression toward a Master Degree in Electrical Engineering. He told me it worked pretty well but wasn't something to use as a daily driver given the technology and availability of suitable components of the time. Fueling LH2 and LOX was somewhat problematic. Upon completion he removed his fuel cell and equipment and, for another project, reinstalled the 4 banger but reassembled it without mechanical fasteners using an experimental epoxy adhesive instead which, he said, worked much better and was a daily driver...for awhile. He went on to be an enlisted Reactor Operator on a submarine for a few years.
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  • Carlson Fan GM completely blew the marketing of the Volt. The commercials were terrible. You'd swear they told the advertising company to come up with an ad that would make sure no one went out and shopped a Volt after seeing it!...........LOL My buddy asked why I bought a car that only goes 40 miles on a charge? That pretty much sums up how confusing and uninformative the advertising was.