Quote:
Originally Posted by TurtleBoy
I used to be very active on the Genesis forums and established some contacts inside Genesis USA. They are definitely gunning for the Germans and trying to develop a product equal to the top of the class. They are off to a great start with the G70, GV80 and the G80 although of course are not quite there yet. They very well could be product-wise in the fairly near future but I would imagine that will depend on how well these first models are received.
What is hurting them, and will continue to do so for the near future, is the dealer network. Since almost all Genesis dealerships are located inside a Hyundai dealer, the luxury dealership experience just doesn't exist. Genesis is trying to get dealers to build stand alone facilities but is not gaining much traction. They were providing incentives for dealers to do so but that didn't sit well with some and a dealership group filed a lawsuit last month to stop that program.
Obviously the other negative factor is they don't have a brand history yet and the reputation that do have is as a more expensive Hyundai/Kia. While that is totally not the case as one could argue the new models are more German than Korean, it will take many years to change that perception.
It will be interesting to revisit this thread in five years or so and see how things played out.
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I think your point about the dealer network is spot on. Take Lexus for example - Lexus does a very good job of differentiating that brand with Toyota. Lexus would not be anywhere near as popular if you had to walk by a Toyota Corolla to buy your LS500. Even just getting your car serviced is a huge contrast. My wife used to drive an IS - the Lexus dealers around here have top notch service departments. Continental breakfast, lounge with leather seats, TVs, business center, etc. We had to take her's into Toyota for service one time and their service department was like waiting at the DMV to get your license. Plastic chairs, only source of water was from a water fountain, etc. It was just a remarkable difference. So I can totally see how someone spending $70+k for a Genesis would not be impressed by having to drive it a Hyundai dealership to get serviced. For Genesis to succeed as a luxury brand, they need to separate themselves from their budget brand.