Genesis, a Brand That Barely Exists in Terms of Sales, Begins a Slow Ascent

Steph Willems
by Steph Willems

As we explained earlier this year, the fledgling Genesis brand is going through puberty. The brand’s constantly evolving dealer strategy is now set in stone, or what passes for it in the world of Genesis, but the process of separating the brand from its Hyundai parent won’t take place overnight. There’s dealers to whittle down, licenses to gain, standalone stores to build, and inventory to stock.

It’s a work in progress, but the 2019 models — which now total three — are beginning to find their way to more buyers, Genesis claims. Be patient.

Because Genesis chose to roll out its growing (yet shrunken) network of revamped dealers with only 2019 models in stock, the company stopped shipping 2018 models in March, allowing inventory to dry up over the summer. Sales, predictably, fell off a cliff.

American buyers purchased just 417 Genesis models in November — a 77 percent year-over-year decline, with volume through the end of November down 48 percent compared to the same period a year earlier. This fall, the original midsize G80 sedan and its full-size G90 stablemate gained a new sibling in the form of the well-regarded G70, which sharers its architecture with the Kia Stinger. Positioned as a rival to the BMW 3 Series and its ilk, the G70 has looks to spare and appropriate power on hand. till, it isn’t a crossover, fo which Genesis has three on the way.

Only when these models arrive can the brand expect to make it out of adolescence.

Speaking to Automotive News, Hyundai Motor America Chief Operating Officer Brian Smith explained the current state of affairs at Genesis. While planning its separation from Hyundai, Genesis quickly discovered that, in order to birth these standalone stores, it would take time to comply with varying state franchise guidelines. The brand had to apply in each state as a marque separate from Hyundai. Chosen dealers in select markets then had to seek a license to sell 2019 Genesis models. As you can imagine, the roll-out has been far from coordinated.

“Rather than have ’19 model year Genesis trickling out, we decided that was going to be the break,” Smith said. As AN notes, the brand gained licenses in 45 states by the end of September.

That’s good news, because Genesis allocated a fair bit of marketing cash towards the G70. The Korean sports sedan first appeared on Hyundai Motor sales sheets in September (the company sold one in the U.S. that month) and is slowly climbing in volume. 51 were sold in October, the Genesis brand’s worst sales month since its launch, with a further 128 finding buyers in November. Last month, as overall volume rose, the brand sold 217 G80s and 72 G90s.

By the end of the year, Genesis expects 100 to 200 dealers (an unusually broad estimate) will have G70s in stock.

[Image: Genesis]

Steph Willems
Steph Willems

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  • Sceptic Sceptic on Dec 10, 2018

    The launch of Genesis brand has been a disaster. Hyundai just stopped shipping product to the US. No wonder sales are so low. Due to this dealers hiked up the prices. Whereas a new G80 was advertised at $33K this time last year. Now, the cheapest ones are advertised at $43K. This type of "launch" does not inspire confidence in the brand. Are they trying to go up market? Compete with Mercedes? Preposterous.

    • Bd2 Bd2 on Dec 11, 2018

      While the separation of Genesis from Hyundai was bungled, there is a reason why shipments (of 2018MY vehicles) stopped in March. That's b/c Hyundai stopped producing the 2018MY and switched to production of the 2019MY early to coincide w/ the planned spring launch of the G70. But once issues arose w/ having separate Genesis franchises, the launch was delayed for months and dealerships had to make do w/ what inventory they had on hand (and Genesis stopped advertising and supporting sales). Canada, otoh, has been selling 2019 models since May or so, as they have a different sales distribution model (direct-from-manufacturer).

  • Cimarron typeR Cimarron typeR on Dec 10, 2018

    Just went on Genesis' website, no dealer in KC metro listed, nearest is Cedar Rapids,IA and Wichita KS. It seems none of the 2 high volume Hyundai dealers want to step up. I don't blame them- wait for the cross- overs.

  • Bkojote Allright, actual person who knows trucks here, the article gets it a bit wrong.First off, the Maverick is not at all comparable to a Tacoma just because they're both Hybrids. Or lemme be blunt, the butch-est non-hybrid Maverick Tremor is suitable for 2/10 difficulty trails, a Trailhunter is for about 5/10 or maybe 6/10, just about the upper end of any stock vehicle you're buying from the factory. Aside from a Sasquatch Bronco or Rubicon Jeep Wrangler you're looking at something you're towing back if you want more capability (or perhaps something you /wish/ you were towing back.)Now, where the real world difference should play out is on the trail, where a lot of low speed crawling usually saps efficiency, especially when loaded to the gills. Real world MPG from a 4Runner is about 12-13mpg, So if this loaded-with-overlander-catalog Trailhunter is still pulling in the 20's - or even 18-19, that's a massive improvement.
  • Lou_BC "That’s expensive for a midsize pickup" All of the "offroad" midsize trucks fall in that 65k USD range. The ZR2 is probably the cheapest ( without Bison option).
  • Lou_BC There are a few in my town. They come out on sunny days. I'd rather spend $29k on a square body Chevy
  • Lou_BC I had a 2010 Ford F150 and 2010 Toyota Sienna. The F150 went through 3 sets of brakes and Sienna 2 sets. Similar mileage and 10 year span.4 sets tires on F150. Truck needed a set of rear shocks and front axle seals. The solenoid in the T-case was replaced under warranty. I replaced a "blend door motor" on heater. Sienna needed a water pump and heater blower both on warranty. One TSB then recall on spare tire cable. Has a limp mode due to an engine sensor failure. At 11 years old I had to replace clutch pack in rear diff F150. My ZR2 diesel at 55,000 km. Needs new tires. Duratrac's worn and chewed up. Needed front end alignment (1st time ever on any truck I've owned).Rear brakes worn out. Left pads were to metal. Chevy rear brakes don't like offroad. Weird "inside out" dents in a few spots rear fenders. Typically GM can't really build an offroad truck issue. They won't warranty. Has fender-well liners. Tore off one rear shock protector. Was cheaper to order from GM warehouse through parts supplier than through Chevy dealer. Lots of squeaks and rattles. Infotainment has crashed a few times. Seat heater modual was on recall. One of those post sale retrofit.Local dealer is horrific. If my son can't service or repair it, I'll drive 120 km to the next town. 1st and last Chevy. Love the drivetrain and suspension. Fit and finish mediocre. Dealer sucks.
  • MaintenanceCosts You expect everything on Amazon and eBay to be fake, but it's a shame to see fake stuff on Summit Racing. Glad they pulled it.
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