Hyundai is Making it Easier for U.S. Dealers to Sell Genesis Luxury Cars

Genesis is changing its retail plan…again.

byEric Brandt|

Genesis has been on a bit of a roller coaster since it was spun off from Hyundai as its own luxury brand. Until recently, the plan was to open a whole new dealer network for Genesis so the fancy luxury cars wouldn’t have to share showrooms with Elantras. According to a recent report in Automotive News, the previous plan to sell Genesis vehicles exclusively through standalone dealers has been revised to make all U.S. Hyundai dealers eligible to sell Genesis luxury cars.

Genesis has planned to roll out a chain of Genesis retailers consisting of about 100 stores in 48 markets. Genesis franchises need to be applied for separately and the dealerships still need to set aside special stores and service facilities just for Genesis, but it seems like it's gotten a lot easier for American Hyundai dealers to sell luxury cars.

"By having more nationwide distribution, you're going to allay consumer fears that they'll be traveling and not be able to get service on their vehicle," said a southern U.S. Genesis dealer to Automotive News. "If it pans out, it'll be a great thing. It'll help sell more cars, it'll help overall dealer profitably, strengthen their dealer network, and include all those who want to sell the product, and believe in the Genesis product, to sell and service those cars. I think it's a great decision."

So, if a Hyundai dealer does go forward with a Genesis franchise, how will that work? 

"For those that chose to become a Genesis franchisee, the same requirements as we had before to achieve brand separation and independence still remain: for example the standalone facility requirement remains the same as before so they must provide a separate Genesis facility to our design and spec requirements by 2021," said Genesis representative Kevin Smith in an email to The Drive

The total number of dealers selling Genesis vehicles may actually be higher than earlier expectations. While the plan was to just have the 100 or so standalone dealers, now the number depends on how many Hyundai dealers apply for Genesis franchises and how many of them are approved. Genesis is trying to find a happy medium by keeping a measure of exclusivity to the brand while still being accessible to the people who want the cars.

If you’re in the market for a Genesis and you were worried about how you were going to get one, it should be easier than previously thought despite the push for exclusivity.