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January 29, 2018

Hyundai Motor America plans separate Genesis dealer network

Fountain Valley, California-based Hyundai Motor America has announced it will develop a separate dealer network for its Genesis Motor America operation.

Fountain Valley, California-based Hyundai Motor America has announced it will develop a separate dealer network for its Genesis Motor America operation.

It has informed existing Hyundai dealers in US "that offers would be forthcoming soon to pave the way to establishing a distinct and properly-sized Genesis retail network".

Some dealers, already parties to the Genesis Participation Agreement (GPA), currently doing business in defined key markets, would be given the first opportunity to apply for the Genesis franchise, the automaker said in a statement.

"Applications are expected to be received within a specified timeframe and the Genesis retailer selection process will begin concurrently."

Hyundai plans to spend the rest of 2018 building the Genesis network to around 100 retailers covering all of "defined key luxury markets".

In much the same way as Toyota, from 1989, established Lexus in key markets, the new Genesis network will operate from temporary and/or shared facilities over the next three years until dealers construct new stand-alone showrooms and service centres.

"We believe in putting our customers first and giving them a proper ownership experience," said Erwin Raphael, general manager of Genesis Motor America.

"To ensure that happens, we need to take this next step in the separation of the Genesis brand from our parent company.

"Establishing a right-sized retailer network, as our product portfolio grows, will ensure the brand can succeed and thrive long-term within the luxury automotive market," Raphael added.

In 2017, Genesis Motor America reported sales of 20,594 G80, G80 Sport and G90 vehicles.

However, Hyundai Motor America sales overall slipped 11.5% to 685,555 units from 775,005 in 2016, according to just-auto.com data.

Genesis will launch six new models in the US by 2021 and will, it claims, "compete with the world's most renowned luxury car brands".

Models sold in the US are covered by an "industry-leading warranty with enhanced roadside assistance and concierge services", the automaker said.

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