Despite the fact that Genesis is a luxury brand, many consumers still need to visit Hyundai shops for service.
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not enough dealerships
The majority of luxury brands have dealerships with opulent showrooms and first-rate amenities, as MotorTrend outlined. Dealerships were significantly more popular hangouts before the coronavirus outbreak than neighborhood mechanics’ shops or quick-service auto repair shops.
Despite being Hyundai’s luxury division, Genesis doesn’t have its own showrooms. The ideal scenario would be to establish independent dealers, as Lexus did with Toyota. Hyundai, however, was hesitant to invest a significant amount of money in these businesses without a guarantee of success.
Numerous states have unsatisfactory franchise laws in place, and Hyundai dealers have already fallen behind other well-known brands in the 2020 J.D. Power Customer Service Index, according to MotorTrend.
The automobile manufacturer had to come up with a practical concierge service to transport cars to consumers for test drives. The rest could then be swiftly and easily handled online if the customer wished to finish the sale. The concierge would supply a loaner automobile and take the vehicle for service if necessary.
Did the service take place at a Hyundai dealership? Yes. However, the client didn’t need to be aware of that.
Shop nearby for the 2019 Genesis G70
The driver would arrive a few hours later than anticipated, according to a call from a service employee the next morning. The identical information was sent to us twice through text, along with confirmations of our agreed-upon meeting place and contact details. The driver also called after 10 minutes had passed.
He left us a silver 2019 G80 with all-wheel drive and a 3.8-liter V-6 after we met him with the G70. Only 186 miles were displayed on the odometer.
As it turned out, we only traveled 187 miles before handing the keys back. The dealership contacted three hours after we had parked the G80 with a diagnostic for our G70 but no repairs, and the service advisor claimed he would send the car back. Our G70 arrived back at our Chicago offices four hours after we turned it over, sparkling clean.
The concept of valet service is neither novel nor exclusive to Hyundai or Genesis. Hyundai provided valet service for the Equus, a predecessor to the Genesis G90, earlier this decade. At the time, the decision made perfect sense because there was no separate dealer network, forcing luxury shoppers to interact with the proletariat who purchased Elantras. (Roll your eyes all you want, but surveys have apparently proven that luxury-car customers prefer their own location to shop, at least for one competing brand.)
Services by Genesis We want to use valet service at least once more this year because it is compatible with regularly scheduled service. Follow us for more.
A high-end car that respects your time and schedule
It’s not always practical or convenient for a vehicle owner to squeeze a trip to their service center into their calendar when a vehicle needs scheduled maintenance or a repair. Who has the time to wait in a waiting room anyway? Regular or necessary vehicle servicing may be hindered by an out-of-town meeting, school play, or yoga class.
A complimentary Service Valet subscription good for three years is included with your new Genesis. In other words, never drop off, pick up, or waste time. You can schedule service with Service Valet online or using the mobile app, and your vehicle will be picked up wherever and whenever you want. Additionally, you will get a loaner car and be able to decide when and where your Genesis will be picked up at your convenience.
Servicing your Genesis shouldn’t be one of those things that you can’t avoid in life. What will you do with all of your additional time is the last remaining query.
Genesis sales through specific Hyundai dealers will no longer be restricted (Updated)
Hyundai determined that Genesis cars can now be purchased through any Hyundai dealer after initially limiting the luxury brand’s distribution to a small number of dealers. This was done because Hyundai realized that greater distribution increases sales.
Hyundai is reportedly changing its mind about a previous plan to solely sell Genesis cars through a separate retail network of only 100 outlets in 48 markets, the most of which are located in urban locations with a larger market share for premium automobiles. This is according to Automotive News. Only Elite-Level dealers would have been permitted to join the Genesis network, denying many retailers the chance to sell the more expensive models.
Naturally, the majority of the current dealerships opposed the idea since they were unhappy with it. Hyundai is now allowing any business that meets the requirements of the new program to sell Genesis cars. The terms of a new franchise agreement that would be required for stores to become Genesis dealers would depend on state laws, and the facility would need to have exclusive sales and service facilities for Genesis clients.
Potential consumers were worried about having to travel too far to get their car serviced, so it makes sense that Hyundai would want to be more picky about which retailers represent their luxury brand. This issue ought to be resolved through the expansion of the channels of distribution.
However, Hyundai and its sibling brand Kia have not always succeeded in giving that type of customer a luxury brand experience. I’ve tried to negotiate with a number of Hyundai and Genesis dealers as a professional car shopper, and I can say from personal experience that many of these establishments have a long way to go before they can provide the same level of customer service that a prospective buyer would expect from a Lexus, BMW, or Audi store.
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A brand might suffer from the actions of a few dealers that prioritize short-term profit over long-term customer satisfaction, as we witnessed with Kia’s attempt to move upscale with the Stinger.
As Hyundai’s new entry-level sports sedan, the new G70, which shares parts with the Stinger, Genesis dealers must be cautious not to alienate customers of luxury vehicles.
That lesson has hopefully already been learnt the hard way by a sufficient number of Hyundai dealers.
Change: Hyundai clarified the new dealer plan in a reply, saying: “The reality of our retailer network update is as follows: We are extending an invitation to all Hyundai dealers who are currently selling Genesis cars to either discontinue doing so or to apply to become a Genesis franchise retailer. As stated in our initial statement, independent Genesis sellers would need to construct a separate location in order to market Genesis models for MY19 and later.”
In the yearly dealership census conducted by Automotive News, Hyundai and Genesis both made changes.
The Genesis brand suffered a decline in the total number of outlets in 2021 even if its eagerly anticipated plan for freestanding dealerships is ready to materialize.
Hyundai Motor America modified the criteria for a Hyundai brand store to be deemed exclusive in January 2021. According to spokesman Michael Stewart, dealerships that don’t divide the two brands into different locations and additionally sell Genesis are no longer referred recognized as exclusive Hyundai dealerships. They are currently categorized as dual stores.
As a result, there were 393 exclusive Hyundai brands as of January 1, down 279 from the previous year. Overall, Hyundai had 827 franchises.
The Genesis franchise, which debuted in 2016, lost 31 locations in 2021, or 9.2% of its network. Genesis had 306 franchises when the year began. According to Genesis spokesman Jarred Pellat, as of last week, its count has decreased to 298. In Lafayette, Louisiana, the first independent dealership for the brand is anticipated to open this week.
However, Genesis’ throughput last year more than tripled to an average of 154 new vehicles sold per franchise. Sales of Genesis tripled in 2021 as well.
840 Hyundai dealerships offered and serviced G80 sedans at the time Genesis made its debut in the United States. 350 of them have the ability to sell and service G90 vehicles.
Genesis selected freestanding outlets instead, hoping to provide a luxurious experience. When Hyundai offered its dealers the chance to sell the Genesis in exchange for their opening of exclusive stores in the spring of 2018, more than half of them accepted settlement payments.
Genesis had 352 franchisees at the start of 2018 and 178 by the end of the same year. On January 1st, 2020, it increased to 352 and then decreased to 337.
According to Pellat, 20 additional freestanding Genesis outlets are being planned and six are now being developed.
The Full Account
The network was initially made up of about 100 stores dispersed over 48 regions, but it now appears that it will also include the present Hyundai dealers.
Genesis announced its intention to start a standalone retail network earlier this year, effectively distancing itself from the Hyundai label. The network was initially made up of about 100 stores dispersed over 48 regions, but it now appears that it will also include the present Hyundai dealers.
According to the most recent information from Automotive News, Genesis General Manager Erwin Raphael recently informed Hyundai’s dealer council that all dealers would now be permitted to offer vehicles bearing the Genesis name.
The news has comforted some current Hyundai dealers, who point to enhancements in customer vehicle service, particularly for those clients who may be traveling.
An unidentified Genesis dealer in the southern United States supported the announcement in a statement to Automotive News, stating, “If everything works out, it will be fantastic. More sales will increase dealer profitability overall, their dealer network will be strengthened, and all those who wish to sell the product and believe in the Genesis product will be able to sell and service those automobiles. It’s a wise choice, in my opinion.”
Hyundai dealerships can seek to become supplemental Genesis dealers as well in order to join the new network. If approved, new dealers will be forced to keep a shop and service center apart from those that focus only on Hyundai.
Elite Hyundai dealers that are currently offering models like the G80 and G90 can either keep doing so or accept a settlement that has already been made and stop selling Genesis cars.
Although it is absolutely natural that Hyundai wishes to maintain some separation between its regular array of vehicles and the more expensive Genesis models, enlisting the services of its current network should make the launch of its new brand easier. Additionally, it should present the Hyundai stable in a more premium light, which might significantly improve brand perception over time.
Hyundai and Genesis are they the same?
The Hyundai Motor Group’s luxury vehicle manufacturing subsidiary is called Genesis, or Genesis Motors, LLC. Consequently, Genesis Motors is a subsidiary of the Hyundai Motor Group.
Hyundai produces the Genesis G70, right?
The Korean luxury carmaker Genesis, which is owned by Hyundai Motor Company, produces the four-door Genesis G70 (also known as the jenesiseu G70).
On September 15, 2017, at a global launch event in Seoul’s Olympic Park, the G70 made its debut as a brand-new nameplate. The G70, Genesis Motor’s third model, was created to compete with entry-level luxury saloons and compact executive sedans. The 2019 North American Car of the Year award went to the Genesis G70.