Expediting the process, Hyundai is pushing forward with the complete separation of the Genesis brand, establishing its own exclusive dealer network. Just a year after gaining independence as a brand, Genesis aims to rapidly distance itself from sharing showroom space with Accents and Sonatas. While Genesis has faced trials and triumphs, significant changes are necessary for it to truly make a mark in the realm of luxury.
Automotive News reveals that Genesis is set to unveil a fresh retail strategy later this month. Swerving from the original trajectory of a gradual transition spanning multiple years, the decision is to swiftly break away as early as the upcoming year. The novel plan not only carries a hefty price tag but may also upset Hyundai dealers who have heavily invested in promoting the Genesis brand.
Previously, any Hyundai dealer in the U.S. could market the Genesis G80 sedan, but to retail the G90 as well, they were required to establish a dedicated Genesis showroom. Out of the 835 Hyundai dealers in the U.S., a total of 352 possess such showrooms and will soon be informed of the need for an entirely new structure should they wish to peddle Genesis vehicles.
The objective is to carve out a unique identity for Genesis. The goal is to assert to the public that Genesis is not merely an extension of Hyundai, but an independent luxury brand in its own right. To achieve this, Genesis requires dealerships brandishing the Genesis insignia and showrooms free of Elantra displays.
In an interesting twist, Genesis needs a more compact dealer network to boost profitability. A higher profit potential exists when more buyers are inclined to invest larger sums on a vehicle sold in an upscale setting rather than a conventional Hyundai dealership. Hyundai faces the challenge of making a substantial investment in establishing this dealer network and gambling on the revenue stream necessary to sustain Genesis.
Will Genesis ascend to the status of Lexus or fade into obscurity?