Alex Dykes on why Genesis sales are temporarily delayed.
11-22-18, 06:47 PM
#1
Lexus Fanatic
Thread Starter
Alex Dykes on why Genesis sales are temporarily delayed.
Good old Alex. 
Once again, he gives us useful information, and explains why some of us (me included) were wrong in previous assumptions. The big problem at Genesis, according to him, is not the lack of crossovers, as the 2017 and 2018 sedans have actually sold better than what we thought. But the problem with the lack of the new 2019 ones is that Hyundai was forced, partly by dealers and partly by the loss of a lawsuit in Louisiana, to restructure both how its dealerships and franchise structures would work......Alex explains the details in the video. Soon, we should start seeing the 2019s.
Once again, he gives us useful information, and explains why some of us (me included) were wrong in previous assumptions. The big problem at Genesis, according to him, is not the lack of crossovers, as the 2017 and 2018 sedans have actually sold better than what we thought. But the problem with the lack of the new 2019 ones is that Hyundai was forced, partly by dealers and partly by the loss of a lawsuit in Louisiana, to restructure both how its dealerships and franchise structures would work......Alex explains the details in the video. Soon, we should start seeing the 2019s.Last edited by mmarshall; 11-22-18 at 06:51 PM.
11-22-18, 07:08 PM
#2
Lexus Fanatic
I would like to know where this guy got his information or data. Hyundai certainly dropped the ball if they did not produce and ship enough units to the US. This is not acceptable for a major company like Hyundai to make this error.
11-22-18, 07:21 PM
#3
Lexus Fanatic
Thread Starter
Unlike most of us in Car Chat, Alex is technically a member of the auto press, and often has access to data that we don't, except for what we read. The only poster in Car Chat I know of that has access to a lot of technical information like that, from the industry in general, is Carmaker1, though some on the CL staff may get inside Lexus info before the rest of us do. I used to be one of three CL Editors (before they abolished the title)...but that was little more than just a moniker for someone who wrote car-related articles in the forum. We did not have any inside info on matters like this.
11-22-18, 07:25 PM
#5
According to the GM at the local Hyundai dealer, Alex got it right. Hyundai did indeed drop the ball, but it was Hyundai USA, not the factory. In separating Hyundai and Genesis dealers, they decided that only Genesis stand alone dealers would receive 2019 models. When the existing Hyundai/Genesis dealers sell out of 2018 models they are done. Unfortunately, there are very few stand alone Genesis dealers so very few 2019 models are being sold in the US. The local dealer is out of 2018 models so they are out of the Genesis business. There is apparently going to be a stand alone Genesis dealer "soon". What a massive screw-up by Hyundai USA.
11-22-18, 07:27 PM
#6
Lexus Fanatic
According to the GM at the local Hyundai dealer, Alex got it right. Hyundai did indeed drop the ball, but it was Hyundai USA, not the factory. In separating Hyundai and Genesis dealers, they decided that only Genesis stand alone dealers would receive 2019 models. When the existing Hyundai/Genesis dealers sell out of 2018 models they are done. Unfortunately, there are very few stand alone Genesis dealers so very few 2019 models are being sold in the US. The local dealer is out of 2018 models so they are out of the Genesis business. There is apparently going to be a stand alone Genesis dealer "soon". What a massive screw-up by Hyundai USA.
11-22-18, 07:31 PM
#7
Since he no longer can sell Genesis and his story pretty much parallels what Alex said I have no reason to believe that it is not credible. Genesis in Canada is apparently not affected so they are busy selling 2019 models like the G70.
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11-22-18, 07:35 PM
#8
Lexus Fanatic
Thread Starter
According to the GM at the local Hyundai dealer, Alex got it right. Hyundai did indeed drop the ball, but it was Hyundai USA, not the factory. In separating Hyundai and Genesis dealers, they decided that only Genesis stand alone dealers would receive 2019 models. When the existing Hyundai/Genesis dealers sell out of 2018 models they are done. Unfortunately, there are very few stand alone Genesis dealers so very few 2019 models are being sold in the US. The local dealer is out of 2018 models so they are out of the Genesis business. There is apparently going to be a stand alone Genesis dealer "soon". What a massive screw-up by Hyundai USA.
11-22-18, 07:44 PM
#9
Lexus Fanatic
Here is a link discussing the topic. A spokesman for Genesis provided some information. Generally speaking, in any financial earnings call, Hyundai would try to give guidance as to why sales are down for the Genesis brand if it were indeed dealers/supply issues.
http://www.thedrive.com/news/22605/h...-in-transition
I am quite certain Genesis would be showing growth if they had themselves a mid size cross over.
Last edited by Toys4RJill; 11-22-18 at 08:15 PM.
11-22-18, 08:57 PM
#10
So would a legit publication like the business section of Wall Street Journal, would they use a GM of a dealer as source? I am not trying to be argumentative at all, so please don’t look at it that way. Does it pass a credibility test. I don’t know. Does Genesis in other countries show the same declines as those in the USA? Or are they growing in units sold which would refute the numbers in the USA?
Here is a link discussing the topic. A spokesman for Genesis provided some information. Generally speaking, in any financial earnings call, Hyundai would try to give guidance as to why sales are down for the Genesis brand if it were indeed dealers/supply issues.
http://www.thedrive.com/news/22605/h...-in-transition
I am quite certain Genesis would be showing growth if they had themselves a mid size cross over.
The article you referenced says the same thing about slow Genesis sales as Alex covered. The transition to stand alone dealerships which are the only ones that can sell 2019 models is slow. The existing Hyundai/Genesis dealers can only sell cars through 2018 model year and that allocation was reduced by Hyundai USA. Having an SUV or crossover would not help if there are no dealers allowed to sell them.
11-22-18, 09:39 PM
#11
Lexus Fanatic
iTrader: (20)
this too shall pass, genesis will have its own dealer network and be selling again. The g70, refreshed g90 for '20 an suv or 3, and likely a new g80 should paint a bright future for those dealers.
there's no great way to spin this in a press release and i think hyundai/genesis is just getting on with getting the new channel up and running, i'd expect a press release then.
as for alex' sources and credibility, he has an excellent track record and this article lays out the exact same with some other details such as them already being ready to go in 49 states.
I am quite certain Genesis would be showing growth if they had themselves a mid size cross over.
11-23-18, 04:19 AM
#12
The pursuit of F
Yeah, no impact to Canada - different business model - no Genesis dealers from the start with the exception of the odd stand-up mall space in key cities across Canada much like Tesla. The entire process is done online and it's working - coordination of the test drive, purchasing, servicing your car etc. They come to you to fulfill these services at your convenience.
Friend of mine recently bought the G70 3.3T HTRAC and was impressed with the entire seamless experience, and he's owned past luxury cars.
11-23-18, 04:41 AM
#13
Lexus Fanatic
Jill,
The article you referenced says the same thing about slow Genesis sales as Alex covered. The transition to stand alone dealerships which are the only ones that can sell 2019 models is slow. The existing Hyundai/Genesis dealers can only sell cars through 2018 model year and that allocation was reduced by Hyundai USA. Having an SUV or crossover would not help if there are no dealers allowed to sell them.
The article you referenced says the same thing about slow Genesis sales as Alex covered. The transition to stand alone dealerships which are the only ones that can sell 2019 models is slow. The existing Hyundai/Genesis dealers can only sell cars through 2018 model year and that allocation was reduced by Hyundai USA. Having an SUV or crossover would not help if there are no dealers allowed to sell them.
Last edited by Toys4RJill; 11-23-18 at 04:53 AM.
11-23-18, 04:47 AM
#14
Lexus Fanatic
Yeah, no impact to Canada - different business model - no Genesis dealers from the start with the exception of the odd stand-up mall space in key cities across Canada much like Tesla. The entire process is done online and it's working - coordination of the test drive, purchasing, servicing your car etc. They come to you to fulfill these services at your convenience.
Friend of mine recently bought the G70 3.3T HTRAC and was impressed with the entire seamless experience, and he's owned past luxury cars.
Friend of mine recently bought the G70 3.3T HTRAC and was impressed with the entire seamless experience, and he's owned past luxury cars.
Last edited by Toys4RJill; 11-23-18 at 04:50 AM.
11-23-18, 04:56 AM
#15
Lexus Fanatic