Hyundai Dealers Furious Over Genesis Split

Hyundai has big plans for its Genesis brand – not only a slate of new models, but a completely new dealer network. And its current dealers are hopping mad over the prospect of being excluded.

Genesis models are currently sold out of mainstream Hyundai dealers across America, roughly a third of which (totaling some 352 dealers) have invested in staff and facilities upgrades in order to sell the top-of-the-line G90.

The automaker is preparing, however, to slash that number down to about a hundred dedicated showrooms. This means that most of the dealers already selling Genesis models will be cut out of the loop.

Automotive News reports that the issue came to a head at a conference of Hyundai dealers in Dallas earlier this month, where several dealership owners got up and left en masse – ostensibly in order to discuss privately, later rejoining the meeting.

“Both the company and the dealers are in complete agreement that this is critical for the success of the Genesis brand and the dealer body,” a Hyundai spokesman told Automotive News, declining to comment on the incident. “At this particular meeting, during a conversation on the Genesis brand, the dealers asked to have further discussions on the topic, which already are taking place.”

The automaker is preparing to roll out the new G70 to slot in below the G80 and G90 sedans, along with a coupe and three new crossovers.

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  • Bash

    Those are Interesting times for Hyundai..

    • Six_Tymes

      These

      • nastinupe

        Six_Times*

    • KSegg

      *interesting

      • Bash

        Not if you emphasis on it a little bit. 😉

  • Craig

    There is only ONE reason that I have never bought a Hyundai and that’s because of the ‘low class guys’ at the dealerships. [At least that’s what they’re like where I live] It was/is like most of them used to sell Ladas. Genesis better choose carefully who they hire sell their cars. Toyota hand-picked the Lexus staff at first.

    • nastinupe

      Better if they just poached Lexus, Porsche and Mercedes salesmen.

  • Comp1

    As the owner of a 15 “Hyundai” Genesis I can say that it will be my last Hyundai/Genesis product because of the low quality/class of the employees at my local dealer. I’ve not had one positive service experience, all requred a return trip to fix basic maintenance screwups. I hate going back for service, I hate going in for parts I hate the whole place. The only way that Genesis as a brand will work is if Hyundai duplicates the Lexus experience. If they don’t they are done.

    • Tumbi Mtika

      Give them time.

    • jaykit

      Same here. I have 15′ as well in S. Florida and the dealer leaves something to be desired.

      Loaners are purple Sonata’s with bright yellow lettering on the side.

      • Tumbi Mtika

        Eww…

    • SgtBeavis

      You bought 15 cars from them and you’ve just now gotten to the point that you’re done with them?

      • G82FS

        Might want to read that post again…

        • SgtBeavis

          *facepalm* DOH!

          Apologies to Comp1…..

      • KareKakk

        Someone belives the sign ‘ used when writing car model years should be put after the 15′, as in 15 feet. If you instead write ’15 everything is more logical.

    • ctk4949

      Agree my local Hyundai dealer looks more like a used car dealership. They have sales ppl out by the front door smoking. Their service dept is terrible as well!!

    • nastinupe

      I own an Audi and Porsche and both companies take their service department experience very seriously. I have actually escaped to the Porsche dealership to do some work while my in-laws were in town. Nothing like looking at a 918 and a 911 GT3 RS for motivate will pecking away at my laptop or on a teleconference. Plus they have the best snacks and the best looking receptionists.

  • Toronado_II

    Bad management here…

    • Six_Tymes

      same happened when nissan spun off/created infinity, honda and acura, etc etc… look how that turned out. so, not so sure this is bad management. in the long run it might be good, as long as the economy stays somewhat stable, like it is now. on the other hand, if the economy takes a nose dive while they are deep in building stages and they produced cars and just started getting them out to the new networks, then that would be bad timing, and that would be above management level decision. “time will tell”

  • john1168

    I can see these dealers being angry. They probably invested some money for their Genesis side of things. But they’ve had to see this coming as well. I think it is inevitable that Genesis would eventually have their own dealership network.

  • Enter Ranting

    Any Hyundai dealer that thinks they should also sell a luxury division intended to compete with BMW and Mercedes is delusional.

  • jsz00

    They couldn’t match Tesla in customer satisfaction anyways, might just throw the towel

    • Blackwater

      Tesla? Yeah it’s hard to match Soviet era build quality with modern technology. Tesla really has to try hard to fail so hard.

  • Alter Ego

    Just sell directly. Who needs dealers?

    • Blackwater

      Illegal.

      Besides, dealers…franchise laws are there to PROTECT the consumer.

      Someone has to work on the things. Trained someones.

      The manufacturer isn’t going to spend billions setting up a brick and mortar network.

      We are talking cars here son, not toasters.

      • Awroo

        We have many laws that are pointless and passed by old men too scared to look at a different future. Tesla got around those laws but you don’t want to hear about that because electric cars are a “scam”. god, your comment history is just trash. Please throw your conservative garbage at someone who gives a shit.

  • Raf

    Hyundai knows the only way Genesis can truly be successful is if the dealership experience is top-notch. If that requires pissing off some dealers then tough nuggets.

    • Blackwater

      Spot. On.

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