Most aren’t used to seeing luxury vehicles being sold alongside more affordable brands. Takes Toyota and its Lexus spinoff, one dealership’s identity is not attached to the other and Hyundai is planning to do the same with Genesis.
Currently, one can find Genesisi models being sold alongside Accents and Elantras inside Hyundai showrooms. That’s a huge price disparity when one compares the $68,000 G90 to a $14k hatchback, thus the need to separate the two so that Genesis may establish itself as a luxury brand.
Genesis US general manager Erwin Raphael spoke with Automotive News about the necessity for separate dealerships. "The reality is, many, many luxury customers tell us they love our products, they're amazing, but I'm not going into a Hyundai store to buy it," said Raphael. "It's really hard to have the two cultures cohabitating.”
Their goal is to complete the transition by the end of 2020 and standards for these stand-alone showrooms are being established. Currently, the company is scouting new dealership locations instead of renovating sites that are already in operation.
Once the shift is complete there will be less dealerships selling Genesis vehicles, but the quality of service should go up. Just in time for the brand’s lineup expansion to six models.