While there’s a new, smaller G70 sedan waiting in the New Year, and crossovers and a coupe after that, the news surrounding the fledgling Genesis brand lately seems to revolve around its dealers. Parent company Hyundai wants separate stores for its luxury marque in the interest of exclusivity, but it can’t have too many of them (in the interest of profitability).
The automaker’s decision to pare down the number of locations where consumers can buy a Genesis-badged vehicle hasn’t gone over well with some Hyundai dealers, but the new division’s long-term growth is Hyundai’s top priority, not dealer acrimony.
As Genesis finds its feet, Hyundai feels it now knows just how many stores the brand can sustain.
That number is 85 to 90 in the U.S., according to Hyundai Motor America’s chief operating officer, Brian Smith. Speaking to Automotive News, Smith confirmed the eventual tally of Genesis dealers — not all of which will be of the standalone variety.
“The dealers are very aware of the fact that in some markets, there may not be a Hyundai dealer who wants to build a stand-alone, separate facility with significant customer service amenities that are required in a luxury brand,” Smith said recently.
Dealers will find out by year’s end which markets the automaker will create standalone stores in. Then comes the selection of which dealers get a new store. Surely, many existing dealers will be disappointed to find themselves not among the chosen few. There’s currently 350 Hyundai dealers in the U.S. selling Genesis products, but Hyundai HQ doesn’t like the idea of vehicles like the G90 sharing showroom space with the Elantra.
Late last month, tensions arose at a meeting between dealers and company executives. Issues raised by dealers included the amount of compensation for those retailers losing the Genesis brand, as well as the earlier decision to physically separate the brands.
“It could grow beyond that,” Smith said of the initial estimate of Genesis stores, “or it may be that we find out that we’re servicing the market really well at 85 to 90.”
Genesis sales began in August 2016 with the midsize G80 sedan, followed soon after by the flagship G90. Given the ramp-up late last year, comparing year-over-year sales of the brand doesn’t tell us much. Still, Genesis brand sales are up 36 percent, year-over-year, in the United States, for an 11-month tally of 18,664 vehicles.
Of that number, some 14,672 were G80s. That’s a 40.1-percent sales increase, year-over-year.
[Image: Genesis]
Make the G70 look more subdued like the G80 and it might represent the majority of sales. I believe there is a market for an upscale small sedan selling for less than $50,000.
The G80 (non-Sport) and G90 are too “subdued,” altho the G80 Sport is a bit better up front.
The problem with the G70 is that it has too many lines going in different directions at the front fascia and the rear is too drab and doesn’t match.
Hopefully, the powers that be at Genesis pick the New York concept as the template for future Genesis models – at least for the sedans (the G70’s design was already frozen by that time) and not the GV80 which foreshadows what the Genesis CUVs will look like.
Out of the corner of my eye, I thought that G70 had been in a collision. Grilles these days make me respect the 86′ Taurus so much more…
I agree. When I see the G70 I think highly optioned Hyundai. The G80 and G90 I think luxury sedan. I believe the G70 will effect brand perception like the C series did to MBZ.
Going to differ on that a bit.
While I have certain misgivings about the G70, overall, think it will be a positive for the Genesis brand.
The G70, unlike its larger brethren, will be competitive when it comes to handling/driving dynamics (granted, not necessarily high on everyone’s list when it comes to luxury sedans) and will have an interior more on par with its segment.
The G70’s interior, in many respects will be nicer than the one in the G80 (which will need a major upgrade for the next gen model).
I agree with all you said. My problem with the Genesis G70 is the sheet metal/plastic from the A pillar forward. Why those tacky chrome accented cutouts at the back of the front quarter panel? Why all the sharp angles on the front fascia?
If this had the lines of a 2012 BMW 3 series it would be very appealing to me.
The Azera/Grandeur that we won’t get in the US is a much more handsome and restrained expression of this design language.
Also, Hyundai’s implementation of the radar cruise control is just terrible. Looks bad on the G80, looks worse here. It doesn’t fit with the grille at all.
This makes sense. The bulk of the stores will be on the coasts with one store in the major metro areas like Denver, KC, St. Louis, Albuquerque, Omaha etc. Wyoming, ND, SD, MT get none.
Following Cadillac’s playbook of emphasizing sedans? Good luck with that!
Not necessarily emphasizing sedans (there are at least 3 CUVs on the way), but starting with them which is what most manufacturers do.
Correct, but also remember that most (if not all) other marques started out before the CUV as we know it was even invented.
And while that is true, most manufacturers still launch their next gen model sedans before their crossovers on the same platform.
Case in point, the new X3 to follow the launch of the new 3 Series and the new X5 still yet to launch despite the 5 Series having been on the market for a couple of years.
Or take mainstream brands with Toyota launching the new Camry before the Highlander replacement.
And it’s not quite as simple as that – reportedly, the GV80 and GV70 will be based on heavily modified platforms from what the G80 and G70 are currently based upon.
Steph, I question your sales figures and whether the brand is “up” as much as you’re thinking it is…yes, “Genesis” sales are up year over year, but the key model, the G80, is WAY down compared to when it was just being sold as a Hyundai Genesis.
G80 sales (2015-end of 2016 was as Hyundai Genesis so these are included)
2015: 31374
2016 (as G80 and “Genesis”): 29396
2017 YTD, including November: 14672
Basically, the G80 is on track for 16,000 sales in 2017, which is a MASSIVE drop from two years ago.
I couldn’t find any figures on the Equus/G90 but I think it’s safe to say that model is selling in very small numbers.
I’m sure the brand model name change had something to do with this, but I think it’s safe to say that the brand is way, way down, no matter what it’s called.
I wonder if the sales drop has to do with the Genesis G80 dropping the lowest trim version of the Hyundai Genesis, effectively raising the MSRP by $4,000 or so.
People who might have considered a Hyundai Genesis at $37,xxx will tune out when they see the same car’s starting price at $41,xxx, even if it’s just the same car with the lowest tier option package ($4,000) added in.
The 2015 sales figure include the coupe; for the sedan, alone, sales were around 27k.
Was expecting a drop in Genesis sedan sales with the switch over to the Genesis brand and the higher pricing (which includes not only dropping the lowest trim, but pricing in the cost of the luxury “amenities” – concierge service, loaners, etc.), as well as the continued movement towards crossovers.
That’s why disagreed with those who argued that Hyundai should have launched the Genesis brand at the very start (aside from the higher pricing hurting sales, would have been financially unfeasible to keep a new dealer network afloat with 1 relatively low-selling model and at the time, heart of the Great Recession, it’s not like banks were lending $$, esp. to build new auto dealerships).
Nonetheless, despite the drop in overall sales, one has to put it in proper context.
That 16k in sales will still be more than DOUBLE what Lexus will do with the GS – which is on track to do less than 7,500 in sales and better than pretty much anything that isn’t the E Class or 5 Series.
A6 – about the same (G80 a little ahead for the year)
For the year, the G80 will handily outsell these competitors.
CTS – 10,400
Q70 – 5,900
XF – 4,600
In a declining segment, the G80’s marketshare has remained the same, if not grown a little.
As for the G90, YTD it has sold 3,992.
While a small #, pretty much on par for the segment that isn’t the S Class and to a lesser extent, the 7 Series.
LS – 3,788
A8 – 2,861
XJ – 2,458
Presently, Genesis has a higher share of the midsize+flagship sedan market than Audi, Lexus or Infiniti.
And Jaguar.
In the big picture, may not seem like much, but it’s a start.
Wouldn’t be surprised if the G70 follows a similar path when it comes to sales (beating the Japanese competition and certain other competitors that aren’t MB or BMW).
Concern with the G70, however, is that it doesn’t offer the superior passenger space that the G80 does in comparison to the competition; would have been better off to make the G70 closer to the Stinger in size even if that means at the cost of some driving dynamics.
RIP Genesis.
I recently traded in my Cadillac CTS all wheel drive for a Genesis G80. I am very happy with my car. It has more luxuries then my Cadillac ever did and rides much better. Regardless of how many Genesis standalones there might be, the car sells itself. Just as with Lexus and Infiniti, it takes time for a new car like this to gain traction in the market. If my car is any indication, Genesis is right on track to compete with any of the other luxury brands.
@Lesa Touger
Was that the CTS 4matic or the CTS xdrive. If your going to use a line right out of Hyundai’s marketing play book. You should find out what Cadillac calls its all wheel drive cars before improvising.
Does anyone know what the translucent plate-looking rectangle on every Genesis grille is? I always thought it was just something I was seeing in photos but then I saw a G80 the other day and there it was.