Genesis Is Getting Ready To Split From Hyundai Dealerships

Industry News

This is an important move for the Korean luxury brand.

Hyundai quickly learned that if it wanted to sell luxury models like the Genesis and Equus in the US, it would have to do what Toyota did and create a spinoff luxury brand. So far, only certain Hyundai dealerships have been allowed to sell Genesis models, and even fewer have been trained to the sell the flagship G90. This will soon change because Hyundai is starting the process to give the Genesis brand its own standalone dealer network. Like Lexus, Genesis will soon have its very own dealerships with a better atmosphere and amenities.

This is a very important move to help more people in the US consider a Genesis because they don't have to show their face in a Hyundai dealer. It has been a struggle to get people to spend over $70,000 on a G90 in the same place where someone else just leased an Accent for $120 per month. Current Hyundai dealerships that participate in the Genesis Participation Agreement (GPA) that are operating in defined key markets will be given the first opportunity to apply for a new Genesis franchise. Throughout 2018, Genesis will build a network of temporary or shared facilities with around 100 retailers. Over the next three years, Genesis will build standalone facilities to enhance the Genesis buying and ownership experience.

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“At Genesis, we believe in putting our customers first and giving them a proper ownership experience. To ensure that happens, we need to take this next step in the separation of the Genesis brand from our parent company.” said Erwin Raphael, General Manager of Genesis Motor America. In 2017, Genesis sold 20,594 G80, G80 Sport and G90 sedans. Genesis sales will likely soar with the arrival of the entry level G70 sedan and some much needed crossovers.

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