Genesis To Go Solo In The Market After Cutting Ties With Hyundai

Hyundai’s premium brand Genesis is planning to break ties from the mothership, as far as the sales network and retail strategy.

The brand will announce a new retail strategy for the U.S. this month that will accelerate its separation from the Hyundai brand and will reduce the number of authorized dealerships significantly, AutoNews reports.

Originally this transition wasn’t supposed to happen until many years in the future and could prove to be an expensive problem for Hyundai and Genesis to solve. It also comes just after two years of the Genesis brand launch and one year after the sales launch of the G80 and G90 luxury sedans.

“We don’t see a path forward without a good, strong dealer network that’s also profitable,” Genesis General Manager Erwin Raphael said. “And we sometimes have to make very difficult decisions in the short run in order to ensure that we take care of our … dealers in the long run.”

Genesis will have the framework ready by the middle of next year, with this strategy reset coming after Hyundai Motor America grounded all Genesis sales in Louisiana, following allegations from the state’s Motor Vehicle Commission that the automaker and the dealers lacked proper licenses to sell vehicles under the new brand.

Right now, Hyundai Motor America allows any of its 835 dealerships nationwide to sell the Genesis G80, also formerly known as the Hyundai Genesis. Out of those dealers, 352 also decided to offer the larger G90 flagship, which requires them to create a special showroom-within-a-showroom for the Genesis brand.

The original plan included the launch of Genesis-only stores in two to three years after the brand’s market launch last August. The updated plan moves the timetable forward by one to two years, focusing solely to separating the two brands, with the details still not have been announced.

Only solo Genesis dealers will be able to perform warranty repairs on Genesis models, unlike the previous plan that allowed them to do factory-paid warranty work on them. “For this brand to really survive and thrive, 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,” Raphael said.


  • ctk4949

    They have to do this!! Some Hyundai dealerships look more like a used card dealership. They need to make new/nice looking luxury dealerships like Lexus, if they want to compete with the luxury brands.

  • ediotsavant

    They should done this from the start.

    • BlackPegasus

      Agreed. I have no sympathy for dealerships but it’s a raw deal for those who incurred the expense of building and upgrading showrooms for the Genesis brand. Had they known about the “solo project” I’m sure many would’ve passed on upgrading their showrooms.

    • bd

      Maybe, but it’s tough to keep a separate dealer network afloat with just 2 models – none of which are in the hot selling crossover market.

  • Karl

    How about giving one of the brand a separate identity including a new grille..

  • Bash

    They can do this… they have to do this… and when they a full complete lineup, i see it very possible to give Infinity a very hard time.

    • An Existing Person

      I just can’t picture that happening. By the time Genesis actually figures itself out and is reputable and confided in among consumers as a true contender, Infiniti would have long built onto their lineup and further established ithe brand as a whole deeper into the luxury segment. Heck, perhaps even Acura would finally be a relevant alternative again by that time.

      • Bash

        Well, in the middle east, Genesis sedans out sell all infinity sedans already… enough said…. but to be fair and deliver the actual fact, since Infinity have three SUVs in their lineup, so they sell more in total.

        • An Existing Person

          Oh ok, I understand the different markets the cars are sold in. I study markets of all types for a living, so i’ve seen how these companies stand across the world. Genesis recently was dropped from sales in the UK by Hyundai due to poor sales. Poor sales follow through Europe. In comparison, here in the US, as well as in Asian countries., Genesis is quite successful, but even then, they are still a far cry from the sedan sales (since they currently only have sedans) from other manufacturers.

          • bd

            Was dropped temporarily since Genesis has no products that are suited for the UK/EU markets.

            Large sedans don’t sell well in the UK/EU, and of the ones that are sold, many are to corporate fleet – which means needing either a diesel, 4-cylinder petrol or hybrid/EV power-trains to avoid higher taxes.

            In the US, the G80/G90 combo are outselling the GS/LS, A6/A8, CTS/CT6, and XF/XJ.

            Until Genesis gets its crossovers, the markets where it will do reasonably well will be in the markets where large powerful sedans are still popular.

            For instance, in Australia, there are more pre-orders for the Kia Stinger than what Infiniti sold as a brand for all of 2016 (so probably will see something similar along those lines for the G70).

      • bd

        The G80 has been crushing the Q70 in sales for years and Infiniti has no G90 competitor.

        Nissan isn’t spending much R&D on Infiniti (Ghosn at one point seriously considered killing the brand) – which is why Infiniti’s growth has been in FWD-drive models, in part via a partnership with Daimler.

        As for Acura – don’t see them going much anywhere as long as their design teams keep pumping out horrible designs and then there’s the whole FWD-thing.

  • Blade t

    I never even see these on the road ….

    • Astonman

      They do very well in Southern Cal – at least the G80 does.

    • HaltestelleLuitpolthafen

      I see them pretty often in the DC Metro area…

  • SteersUright

    Genesis isn’t a name that particularly denotes a premium automobile experience. Sounds more religious if anything. Should’ve chosen something more prestigious sounding. Nitpicking and yeah, throwing my two pennies into the fray. Anyhow, Hyundai making some seriously good stuff now, just nothing yet has shown to have the chassis dynamics to match the best in the biz. I will say the Genesis sedan is extremely luxurious and a bargain considering its content and price. But when you’re taking on the Audi’s, BMW’s, and MB’s of the world, you’d better be both luxurious and able to competently go around a corner.

    • bd

      Made up names like “Lexus”, “Infiniti” and “Acura” sure sound “premium.”

      • Domas

        Forgot to mention Cadillac and Lincoln. 😀

        • bd

          That’s b/c Cadillac is not a made-up term.

          Cadillac was named after the founder of Detroit, Antoine de la Mothe Cadillac, and Henry Leland named his automobile company after Abraham Lincoln.

          The front-runner name for Toyota’s new division was “Alexis,” but due to concerns about the name being shared by a character in a popular nighttime soap, the name was changed to “Lexus.”

      • OdysseyTag

        To be fair, I’d hardly consider Infiniti a made up name but rather a stylization.

  • john1168

    One of the things hurting Genesis is not having it’s own dedicated dealership network. I don’t think people want to pay a bunch of money only to have to wait in line for service behind a Hyundai Accent customer. Nothing against the Accent and not trying to sound snobbish.

    • bd

      Hasn’t hurt them enough to prevent the G80/G90 to outsell the competition from Audi, Lexus, Jaguar, etc.

      Would have included Infiniti, but they don’t have a sedan in the flagship segment.

    • HaltestelleLuitpolthafen

      That’s why Genesis offers valet service when you need to take your vehicle in. Even the purchase program for the G90, a sales rep will bring the vehicle to you, so you don’t even have to set foot in a dealership.

      That was their bandaid while getting their own dealerships up and running, and it is working rather well for them.

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