Genesis standalone dealerships make some Hyundai dealers angry
The Hyundai-owned Genesis brand will roll out its own dealerships, roughly 100 stores in 48 markets. This move has angered some Hyundai dealerships because they previously sold Genesis products.
Some elite-level Hyundai dealers can bid to open a new Genesis franchise, but many Hyundai dealers won’t have that chance. Many of those dealers used to sell only one or two of the brand’s models, but it provided a needed upgrade offering to their customers.
Andrew DiFeo, chairman of the Hyundai National Dealer Council, said that there was already quite a lot of work done to appease current Hyundai dealers and some still aren’t happy.
“We stressed the importance that there needs to be compensation, and the compensation can’t just be for buying back cars and parts,” DiFeo said to Automotive News.
There is a Genesis reimbursement plan that Hyundai announced last month. It will provide an amount to Hyundai dealers who invested in inventory, training, and service equipment for early Genesis models. The amount that each dealer is reimbursed will depend, in part, on how many models they sold.
Still, despite these steps by Hyundai, many dealers don’t feel the compensation is enough. Many of those dealers made thousands of dollars in investments to make their showrooms ready to carry Genesis’s new products. This was done after Hyundai stated that it believed it could launch the luxury brand within current Hyundai dealers. Now, the company has flipped on that stance and many dealers have been left out of the picture.