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)