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Genesis reverses plan to limit standalone dealershipsby Ben Hsu
The luxury marque could now launch with more than 100 stores.
Genesis has once again made significant changes to the luxury marque's upcoming launch as a standalone brand. The decision reverses a plan announced in January and may result in a much larger dealer network than initially planned.
Automotive News reports that Genesis has gone back on a January announcement that standalone Genesis showrooms would be limited to 100 stores in 48 major urban markets. Many of parent company Hyundai's 350 elite-level dealers were upset that they would be competing for a limited number of chances to open a Genesis franchise.
However last week, Erwin Raphael, Genesis's general manager, told Hyundai dealers that the Genesis launch could have more than 100 stores, and that all US Hyundai dealers could have the chance to sell Genesis cars.
The opportunity can be lucrative, as starting in 2019 only standalone Genesis dealers will be able to purchase Genesis cars wholesale. Only Genesis dealers will be allowed to perform warranty repair work on Genesis cars as well.
Currently, Genesis offers two models, the G80 and G90, but a BMW 3-Series fighter called the G70 will arrive this summer. The first Genesis showroom was announced in January and will be built in an upscale district of Seoul, South Korea.