Genesis Abandons Plans For Elite Dealer Network - Offers Line To Every Hyundai Shop

Genesis is not doing well because right now they have a all sedan lineup, and their leases are not significantly cheaper than Lexus, Infiniti and BMW.

Genesis does not "compete"with true premium manufacturers simply because they are not perceived as being premium product. Even in the market today - where their Hyundai cars actually compare in some ways to Toyota and Others - They are perceived as being CHEAP Korean cars - and if you look at a Hyundai dealer AD - you will immediately discover that they cannot sell them without MAJOR money back on the hood.

At least - by the time Toyota brought out Lexus - they had a reputation for reliable product - even if it was boring. Lexus - which also does not compete at the true premium level - was simply a more luxurious Toyota - and some people bought them for that reason. Unlike Honda - whose reason for bringing out Acura was for more than just Luxury - the Legend was an Accord with a V-6 engine - something you could not get in an Accord at the time.

ANd it was these same Hyundai dealers - who knew this - that refused to spend additional money to open a second building just to sell a low volume car that they knew the public in the USA would not see as being of value.

There will be lawsuits as some Genesis dealers have acquired real estate for stand-alone dealers with some having broken ground.

Not a good sign for the brand. First, Genesis was going to be branched off years ago. They decided to keep them all Hyundais. Then Genesis branched off. All dealerships were going to sell them. Then only specific dealerships. Then Genesis-specific dealerships only. And now back to all Hyundai dealerships. This lack of direction and conviction to the strategy should be worrisome to any stockholder, especially considering the dropping sales of both brands.

The upcoming G70 should help, but will it? The Kia Stinger is selling at about 1300 units per month. Do we consider that a good number? Considering the amount of hype and exposure the Stinger received at promo and launch, I'm not so sure. Also considering the car starts at a price point undercutting its intended targets, selling in numbers fewer than the A3 and CLA may not be a good sign. The G70 should come in priced a bit higher, so they may need to offer incentives at launch to get the party going.

Selling or servicing luxury cars at a Hyundai dealership will go about as well as the ill-fated VW Phaeton -- a car they wanted to position against Mercedes, being sold and serviced at your local VW dealer (with Uber-Jetta VW styling).

If ya wanna play in the luxury arena, ya gotta play by the luxury rules.

And that makes no sense either.

Kia and Hyundai offer essentially the same set of car from Mid size down. Kia does have some upper level cars that Hyundai does not have an equivalent - but there is just TOO MUCH overlap between Kia AND Hyundai to put them together in the same building.

Now imagine - if Hyundai had produced a new BUICK Competitor called Genesis - and they produced cars similar to premium brands - at Buick level prices to begin with. Now THAT might have worked better than list prices that Hyundais are not perceived to approach.

Wow, this was unpredictable. Maybe they needed more cars in shopping malls?

Genesis needs to concentrate on RX/ES/NX demographic. Forget the extra large SUV and sedan. Don't make the same mistake as Cadillac and chase BMW performance numbers.

Perfect solution:

Hyundai-Kia buys Dodge, Jeep, and Ram

Creates two channels

Hyundai (mainstream) / Ram / Dodge (Challenger/Charger)

Kia (near premium / Jeep / Genesis

How embarrassing

Business owners have already spent money setting dealerships in motion.

lmao, it was a stupid idea to begin with. They just need to roll kia/hyundai/genesis into one dealership and call it a day.

Genesis??? Genesis who?

Genesis Jones