#FranchiseAgreements

“We do in fact have to expedite our process of separating our brands.”
– Genesis Motors General Manager Erwin Raphael

From the start, Hyundai Motor America’s plans to launch its upmarket Genesis brand inside Hyundai showrooms was easy to question. Do consumers want the link between a $68,100 Genesis G90 and a $14,745 Hyundai Accent to be so obvious?

Of course not. But affording Genesis a mere corner of certain Hyundai showrooms wasn’t the only problem — Genesis general manager Erwin Raphael also had issues early on with the number of Hyundai dealers signed up to sell the Genesis brand.

“We may see that (350) figure go down,” Raphael said in November 2016, only a few months after the brand began selling cars in America. “I think it is too high.”

Fast forward to August 2017 and Hyundai’s plan to eventually separate the Genesis brand with standalone showrooms, perhaps in 2020, is about to be pulled way forward. “For this brand to really survive and thrive,” Raphael tells Automotive News, “and for us to develop the culture within ourselves and within our dealer network to support and take care of these customers, we do in fact have to expedite our process of separating our brands.”

So what happens to all of those Hyundai dealers who recently spent thousands renovating showrooms to include Genesis studios?

Months after the New Jersey Motor Vehicle Commission forced Tesla to stop directly selling its vehicles to the public, the automaker’s appeal moves closer to its day in court.

Though most automakers prohibit sales of their wares to exporters, and though the government can sometimes block an export despite such exportation being legal, exporters in the United States are finding themselves in the crossfire over premium vehicle exports to Chinese consumers who prefer to pay lower U.S. prices over higher local prices.