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    Genesis Plans A Stand-Alone Dealer Network

      An effort to separate itself from its Hyundai brethren

    Genesis is wanting to distance itself from its Hyundai stablemate by its own dealer network. Currently, if you want to buy or service a Genesis model, you'll need to visit a Hyundai dealership with a discrete Genesis showroom.

    According to Automotive News, Genesis is planning to cut down from the 350 dealers eligible to sell Genesis vehicles to just 100 across the U.S.

    "The distribution network model where we're selling luxury cars through 840 Hyundai dealerships that are mainstream dealerships just doesn't work. Luxury customers are looking for a different experience. That's really the driving force," said Erwin Raphael, Genesis general manager.

    The 100 dealerships will be in 48 markets across the U.S. including Chicago, Los Angeles, New York, and Washington D.C. Dealers in these markets will have the first chance to apply for a franchise. If chosen, dealers will need to have facilities ready by Jan 1, 2021. Dealers who don't apply or not chosen will get a compensation package to reimburse various costs for training, equipment, and inventory.

    "Some of these dealers have spent hard costs in the last year. We would reimburse them those costs. If they request us to buy the vehicles back for whatever, we'll buy those back and make them whole. Same with parts and accessories, special tools. We're not going to leave the dealers with any baggage," said Raphael.

    Source: Automotive News (Subscription Required)



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    This could and I think will be game changing for them. This is what all of Lincoln and Cadillac need to do(obviously there are some already but the rest need to be stand alone as well).

     

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    I am not aware of too many Cadillac dealerships that are aligned with something else.  My local Cadillac dealer has been mostly standalone since they opened shop in 1973.  There might be a few, but I suspect not too many Cadillacs are sold in those (small) dealerships.

    As for Lincoln, those were paired with Mercury until Ford shut down Mercury in 2009.  Lincoln itself (and Genesis) need to have their own space as separate dealerships.

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    The Cadillac dealer in my Phoenix neighborhood was also a Buick/GMC dealer (and Pontiac previously).   But about 2 years ago they moved the Buick and GMC parts across the street to their former used car lot. 

    Edited by Cubical-aka-Moltar
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    Cadillac has always been a stand alone dealership in Washington, but usually owned by someone or a group that also owned other dealerships.

    I totally agree with what they are doing for Genesis. The Luxury buyers do not want to have their high end auto mixed in with lower end products. 

    This is where I believe BMW and MB will fail as a high end customer tend to not mix with their lower end cousins.

    My big wish is that Cadillac would step up faster with new product and require the existing dealers to invest in remodeling to be 21st century dealerships.

    To many are old Cadillac dealerships that have not really remodeled or updated in the last 20-30 years.

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    18 minutes ago, dfelt said:

    This is where I believe BMW and MB will fail as a high end customer tend to not mix with their lower end cousins.

    What?

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    I wonder if there are still any single showroom full line GM dealers left.  I remember visiting one specific one as a kid that carried Chevy, Pontiac, Olds, Buick, GMC and Cadillac in one dealer, one showroom in a unique, remote community--Key West. 

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    2 hours ago, Cubical-aka-Moltar said:

    I wonder if there are still any single showroom full line GM dealers left.  I remember visiting one specific one as a kid that carried Chevy, Pontiac, Olds, Buick, GMC and Cadillac in one dealer, one showroom in a unique, remote community--Key West. 

    That might be the only places left like that in the mid west and deep south.

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    7 hours ago, ccap41 said:

    This could and I think will be game changing for them. This is what all of Lincoln and Cadillac need to do(obviously there are some already but the rest need to be stand alone as well).

     

    If the models keep growing, they are going to have to....

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    7 hours ago, Cubical-aka-Moltar said:

    I wonder if there are still any single showroom full line GM dealers left.  I remember visiting one specific one as a kid that carried Chevy, Pontiac, Olds, Buick, GMC and Cadillac in one dealer, one showroom in a unique, remote community--Key West. 

    Key West?  The nearest Cadillac dealer is in Miami close to Homestead, quite a distance from Key West.  I doubt any dealer has been in the Keys in a long time.

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    11 minutes ago, riviera74 said:

    Key West?  The nearest Cadillac dealer is in Miami close to Homestead, quite a distance from Key West.  I doubt any dealer has been in the Keys in a long time.

    There was a full line GM dealer there when I lived in the Keys 30 years ago.  No idea what's there now. 

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    Cutting from 350 dealers to 100 doesn't sound like a growth model.  I get that they want their own dealership to make them seem like a stand alone brand and have the separate experience.  But they need more models and better models if they want this to work at all.  They could spend $50 million on a dealership building with a $100k a year salary chef providing gourmet lunches to service customers, but if the G80 is what they are selling it isn't going to make a difference.  

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    I think they are going for a slow growth model; Lexus had only 2 models the first several years of it's existence.  They aren't trying to be a high volume luxury brand like M-B or BMW at this point...

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    2 hours ago, Cubical-aka-Moltar said:

    There was a full line GM dealer there when I lived in the Keys 30 years ago.  No idea what's there now. 

    WOW, Key West is bigger than I ever thought in population and business, they have a very nice Cadillac Dealership now there.

    http://www.nilescadillac.com/MeetOurDepartments

    Took a while but found the current street images and yes it is one massive big GM dealership all under one roof.

    https://www.bing.com/maps?q=3500+N+ROOSEVELT+BLVD+KEY+WEST%2c+FL+33040&FORM=HDRSC4

     

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    Well, Key West is the Monroe County seat.  The other Keys are too small to support a new car dealer and some are closer to Key West than Miami.  I lived in Marathon in the Middle Keys.  Fascinating place.   A series of little islands connected by bridges. 

    Edited by Cubical-aka-Moltar

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    They need crossovers in a bad way, crossovers are really the bulk of $30-60k vehicle sales whether they be from a luxury or non luxury brand.   Getting that product mix right is step one, step two is the product.   Their powertrains are dated, the G90's interior is at best on par with a C-class, and they lack any performance vehicles.  

    I am not saying they can't do it, but they have to elevate their game and spend more money on product development.  And that is where all these wanna-be luxury brands fall down.  They don't have the volume or profit margins to justify spending $2 billion on developing one car, so they cut corners all over the place and it shows.

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    I guess as a household that buys new rather infrequently, I've never gotten the 'dealership experience' thing. Last time my wife bought new, the whole transaction took maybe an hour. I'd rather have a free wheel upgrade than pastries & mood music.

    Cadillac dealer by me was an Olds-Cad store on a back street since the '60s. Wife got her Intrigue there, dealer was quite dated, but again, the time spent there was inconsequential. They build a new building on a major highway & moved, but in '08-09 it closed. The local Ford-Linc/ Buick-GMC-Pontiac/ Chevy dealer bought them, and for a few years Cadillac & Chevy were in the same building, but a few years back they built a stand-alone Caddy store/service department. Haven't been in there yet.

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    As long as Genesis properly tempers expectations and does a quality control roll out, they should do fine.

    Fact is the days of old having thousands of dealers within miles of each other are over. Even the loyalty to the same dealer is pretty gone for most as like rabbits in heat, as long as they get the service satisfaction, the owner will tend to take their auto to where ever is convenient and close to get the work done.

    Sad as I hear this all the time that my coworkers do not care which Cadillac, BMW or MB dealer they go to as long as they get the work done and especially if the OEM is covering the work.

    I myself love a great dealer experience where they know me, my auto's and take care of me.

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    11 hours ago, smk4565 said:

    Cutting from 350 dealers to 100 doesn't sound like a growth model.  I get that they want their own dealership to make them seem like a stand alone brand and have the separate experience.  But they need more models and better models if they want this to work at all.  They could spend $50 million on a dealership building with a $100k a year salary chef providing gourmet lunches to service customers, but if the G80 is what they are selling it isn't going to make a difference.  

    I have no clue the numbers but what do the other luxury brands have for dealerships? 

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    I assume the fewer dealer numbers is because Genesis is setting up separate stores, rather than being glommed onto existing Hyundai stores...makes sense there would be more Hyundai stores....

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    15 minutes ago, Cubical-aka-Moltar said:

    I assume the fewer dealer numbers is because Genesis is setting up separate stores, rather than being glommed onto existing Hyundai stores...makes sense there would be more Hyundai stores....

    Agreed, in Asian minds, remember I am married to one from South Korea and having gone to college in Japan. Asians want exclusivity and that does not mean it is the Toyota, Chevrolet etc. of common auto's. 

    In fact I see more asians driving Tesla, Cadillac, Land Rover, etc. the high end brands do not cater to everyone from just starting out college student to the ubber 1%. 

    This is why I think BMW and MB will loose out in the asian rim and north america eventually as they are no longer giving that exclusive luxury experience.

    Hyundai has seen that they need to keep the Genesis as a luxury level exclusive brand and as such, separate from Hyundai that has cheap efficient marketing dead to rights that people know it for.

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    55 minutes ago, ccap41 said:

    I have no clue the numbers but what do the other luxury brands have for dealerships? 

    According to this story in Detroit News, Cadillac has 928 Dealerships down from 1422 at the Bankruptcy and Cadillacs boss thinks that is way too many. The story goes on to say that as of 2015 Cadillac had 200 stand alone stores, he would like to get that to 300 and reduce the combo stores by half.

    http://www.detroitnews.com/story/business/autos/general-motors/2015/01/21/cadillac-considers-boutique-stores-small-dealers/22144177/

    We could probably get a clear picture of the 18K dealerships in the US and how it breaks down by brand and stand alone store but it requires a yearly membership fee of $588.

    https://www.statista.com/topics/3594/auto-dealers-in-the-us/

     

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    19 minutes ago, ccap41 said:

    Do you know how many dealerships the German brands have for comparison? 

    Here is what I could quickly find:

    BMW - 342 Dealerships based on their best awards press release.

    https://www.press.bmwgroup.com/usa/article/detail/T0268294EN_US/bmw-of-north-america-announces-best-dealership-awards

    Mercedes-benz - 382 Dealerships based on counting them on the MB website. 

    https://www.mbusa.com/mercedes/dealers/locator#!layout=/dealers/locator&businessType=DEALERS&radius=25&expandRadius=false&searchType=byZip&zip=&stateCode=WA

    Audi - 280 Dealerships based on their find a dealership website.

    https://www.audiusa.com/dealers-webapp/map

    Porsche - 189 Dealerships based on their find a dealership website.

    https://www.porsche.com/usa/dealersearch/

    VW - 650 to 750 based on this news story that states 650 as of the end of 2015.

    http://www.autonews.com/article/20150112/RETAIL07/150119934/vw-plans-to-add-100-u.s.-dealerships-by-2018

    And Cadillac has 928

    Lincoln has 3000+ based on them being in every Ford dealership location according to Ford's web site. Taking a look at their locator it truly seems to hold true.

    http://content.dealerconnection.com/vfs/brands/us_lincoln_en.html 

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      Dividing the steering wheel into lower and upper halves, Genesis distinguishes the upper (panoramic area) and lower part (control area) to optimize intuitive use of the vehicle as well as the view ahead.
      The steering wheel and sleek, thin air vents run across the passenger compartment splitting it into the panoramic area above and the control area below. The number of hard buttons and switches was intentionally kept to a minimum, both for aesthetic purposes and ease of use.
      In the panoramic area, a heads-up display, a 12.3-inch instrument cluster and a 14.5-inch infotainment system display necessary information while driving.
      The control area is equipped with an intuitive suite of interfaces: a Genesis integrated controller for HVAC controls, a rotary-operated electronic shift dial and touch-and-write infotainment system.
      G80’s leading interior space has been further developed. Both headroom and legroom were increased by lowering the seating height of the second row, allowing for both more interior room and a more dramatic roofline. Completing the space, the G80 features leather seating and steering wheel surfaces, soft-touch fabrics and coatings as well as open pore wood trim finishes.
      Dynamic Luxury Begins with a Solid Foundation, Powertrain Innovations
      The G80's platform represents a brand-exclusive, third-generation, rear-wheel drive platform with a design that lowers the body and the center of gravity to secure a wider cabin and improved driving stability.
      “The all-new G80 brings all the existing strengths from the previous generations all the while upgrading the powertrain, platform and communication system with the state-of the art technologies,” said Albert Biermann, President, Head of Research & Development Division at Hyundai Motor Group. “It is a true, authentic Genesis.”
      The use of lighter weight materials was a distinct focus. Aluminum is used for about 19 percent of the body, reducing the weight by 110 kg (243 lbs) compared to the previous one, thus increasing fuel efficiency and performance.
      Engineered for world markets and customer needs, the G80 features three powertrains:
      2.5-liter turbocharged Inline-4: 304 PS (300 HP @ 5,800 rpm) and 43.0 kgf·m torque (311 lb.-ft. from 1,650 – 4,000 rpm) 3.5-liter turbocharged V6: 380 PS (375 HP @ 5,800 rpm) and 54.0 kgf·m torque (391 lb.-ft. from 1,300 – 4,500 rpm) Diesel 2.2-liter Inline-4: 210 PS, 45.0 kgf·m torque. (Not available in the U.S. market) The G80 features improved door sealing, new engine compartment sound insulation and resonant sound-reducing wheels to ensure indoor quietness and class-leading, low levels of noise (NVH). In addition, the Electronically Controlled Suspension with Road Preview, enhances ride quality by reducing road impacts using information supplied through the front camera.
      Advanced Safety
      In keeping with the brand’s safety platform, G80 applies standard active and passive safety systems, as part of a brand-level engineering commitment to passenger security. State-of-the-art, advanced driver-assistance systems (ADAS) include:
      Highway Driving Assist II (HDA II): This system helps assist the driver in a wider variety of situations than before, including during lane change maneuvers when the turn signal is used, and when others merge in front of you. Smart Cruise Control with Machine Learning (SCC-ML): A world first, SCC-ML, as applied to the all-new Genesis GV80 SUV earlier this year, incorporates artificial intelligence (AI) within the Advanced Driver Assistance System (ADAS) feature that helps the car to independently learn the driving characteristics of - and assist - its driver. Forward Collision-Avoidance Assist (FCA): This system may help automatically bring the G80 to a stop in certain situations where there is a risk of collision with an approaching vehicle detected on the left or right side of the intersection. G80 may also help detect potential collision risks in certain situations where a pedestrian is sensed in close proximity to the vehicle while in motion, for example. Blind-Spot Collision Avoidance Assist (BCA): BCA is essentially a Blind Spot Monitor with active capabilities. BCA helps reduce the chance of potential impact with a moving vehicle and may alert the driver if a vehicle is detected in the driver’s blind-spot A complement of 10 air bags includes front and side airbags as well as a center airbag, between the front seat occupants, that helps prevent secondary contact between occupants in a side impact.
      In addition, the Genesis safety platform works to integrate communications between 40+ controllers in real time to help ensure the safest response in various scenarios.
      Next-Generation, Technology-Enabled Luxury
      The G80 offers a high level of convenience to drivers with a suite of new technology. Each new feature is focused on further and seamlessly integrating the G80 with its client’s lifestyle, devices and preferences. A selection of highlighted features include:
      The Remote Smart Parking Assistant (RSPA) provides remote drive/reverse functions that facilitate parking in narrow spaces, as well as perpendicular parking and parallel parking. This can be controlled within the car or outside, remotely via the key fob. The 12.3-inch 3D instrument cluster recognizes the driver's eyes and provides various driving information and can be converted to 2D depending on the driver's preference. The Genesis Integrated Controller allows users to set destinations or enter phone numbers by simply writing on the main control center instead of complicated keyboard input. A 14.5-inch touchscreen infotainment system links with the Genesis Integrated Controller to support Genesis Quick Guide and Valet mode. Valet mode is a function that enhances security so that users' personal information does not appear on infotainment screens when using a Valet parking service. Over-the-air, wireless updates to the navigation system. Phone connectivity including Android Auto and Apple Car Play. With an eye toward the senses, luxury-focused items include:
      The driver's seat is equipped with an ergo motion seat function featuring seven air cells which enables optimum seating for each driving mode and reduces fatigue via a stretching mode and automatic posture correction functions. Ambient mood lamps applied throughout the interior add a sense of calm to the passenger space in various colors. From a sound standpoint, Genesis has enhanced the engine's sound with its Active Sound Design (ASD), standard on all G80s equipped with gasoline engines, adding an additional level of customization. The Lexicon sound system allows passengers to enjoy the vivid sound effects of a concert, such as "Quantum Logic Surround Audience Mode/Stage Mode," adding to the joy of listening. The first row HVAC system allows the driver to adjust the heated/ventilated seats in the second row and the air conditioning mode/temperature independently of the first row, increasing the convenience for second row passengers. Marketplace
      The all-new G80 enters the marketplace on March 30th in South Korea and in the second half of the year in other markets, starting with North America.
    • By Drew Dowdell
      At an event is Seoul, South Korea yesterday, Genesis finally unveiled their new GV80 luxury SUV.  The overall look of the GV80 has been leaking out on the internet for months, but we finally get the full official release now.
      The interior and exterior of the GV80 is designed with a common thread to give a familial look with the G70, G80, and G90.  The GV80 introduces a new quad headlamp design that will eventually filter out to the other vehicles in the Genesis lineup. The crest grille first seen on the G90 is here too. The interior of the GV80 focuses on the "beauty of white space". The designed accentuated the width and space of the of the interior with wide horizontal lines and thin air vents.  In the center is a 14.5-inch split screen infotainment display. Genesis intentionally limited the number of hard buttons and switches for aesthetic reasons. The GV80 comes in either 5-seat or 7-seat models. On up-level models, soft materials cover every surface from the inside of door handles to quilted knee pads that line the lower sides of the console.  The transmission selector is a dial in the center console. The integrated controller can be operated by an onscreen keyboard or by handwritten letters. 
      Trips in the GV80 are designed to be stress-free. It gets equipped with a Road Active Noise Cancellation technology to reduce road noise. The system is one of the advanced and fast responding systems in the world. The electronically controlled suspension with road preview helps maintain a smooth ride by recognizing road imperfections ahead via a front camera.
      The GV80 is based on a unique new rear-wheel drive platform, while all-wheel drive is available.  In South Korea is till be equipped with a 3.0-liter six-cylinder diesel engine while the U.S. will get a choice between two unspecified turbocharged engines. All-wheel drive models in the U.S. will be equipped with an electronic rear limited slip differential.
      There is a host of safety and driving assistance technologies in the GV80 including Smart Cruise Control with Machine Learning, Highway Driving Assist II, Forward Collision-Avoidance Assist, Blind-Spot collision Avoidance Assist, Rear cross-traffic collision avoidance, and driver attention alert warning. In the event of a collision, there are 10 airbags, including a center mounted airbag between the front occupants. 
      The 2021 Genesis GV80 will go on sale in North America later this year.
       

      View full article
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