Solely final yr, Genesis opened its first two dealerships — one in Lafayette, La., and the opposite in Greer, S.C. Although there are about 100 extra in some section of growth, most sellers have to date opted to not put money into the model’s Keystone program — the retail facility design program that Genesis rolled out in 2020. Most Genesis sellers are as an alternative persevering with to promote their luxurious automobiles from their Hyundai shops.
“It is not truthful to place Genesis up in opposition to a BMW, Mercedes or perhaps a Lexus retailer when it has a tremendous product, but you are promoting it out the facet door of a Hyundai dealership,” Bergstrom mentioned.
“That is not luxurious,” he mentioned. “The sellers understand it, and the producers understand it; it is simply how will we get from the place we’re right this moment?”
Issues have been altering for Genesis since 2020, and that would make the funding proposition look a lot sweeter for hesitant sellers.
What as soon as was a three-sedan portfolio provided by a Hyundai spinoff has grown right into a lineup of high-design, tech-forward automobiles that features two top-selling luxurious crossovers and three electrical automobiles. The model is now considered a bonafide luxurious participant by U.S. customers. Genesis gross sales hit 56,410 automobiles final yr, a 14 p.c year-over-year improve in a market that declined by 7.9 p.c.
Genesis is now intent on taking its product line additional upstream and turning into an all-electric luxurious line. Genesis CEO Jose Muñoz spoke to the seller physique earlier within the yr and exhorted them to put money into shops. He informed them that the 2 sellers who already had invested in standalones have been seeing increased earnings than they beforehand had.
Bergstrom believes Genesis will be unable to compete in opposition to different luxurious makes with out standalone shops.
“We’ll endure attempting to promote individuals a Ritz-Carlton expertise at a Motel 6 and ask them to return again a second time,” he mentioned of the model.
“Once you’re used to the extent of luxurious remedy offered by high luxurious manufacturers, and then you definately get serviced in a Hyundai retailer with a value-brand expertise, it is not an apples-to-apples battle,” he mentioned.
“Genesis has to get its sellers to have the ability to and need to swap to having all this overhead, all this funding, so friends get a luxurious expertise,” Bergstrom mentioned.
“It is one factor to have a particular automobile. It is one other factor to have that visitor handled particular.”