Genesis is prepared to compensate Hyundai dealers who will be left out of its limited network of stand-alone stores.
But some dealers don't want the compensation. They want Genesis.
And they're eager to try their luck at snagging one of the 100 franchises up for grabs in 48 markets across the U.S.
Keyes Hyundai in Van Nuys, Calif., is one of those dealerships. Based on a Genesis webcast that detailed compensation terms, the dealership estimates it could get a reimbursement package worth around $5 million if ownership decided to get out of the Genesis business.
But Keyes is one of the 350 elite-level Hyundai stores that were eligible to sell the Genesis G80 and G90 under the Genesis Participation Agreement. And it's in Los Angeles, one of the key markets Genesis has targeted for its new stores.
That means it's among the dealerships that get the first chance to apply for the stand-alone locations.
Keyes leaders believe that in the right environment, the upstart luxury brand has profit potential, so General Manager Brian Sobel says they'll make a push to win one of the franchises.
The odds would appear to be in Keyes' favor: It was the No. 2 Genesis retailer in the western region in 2017, selling 101 G80s and 39 G90s, it says.
Far more Hyundai dealers will lose the right to sell Genesis products than keep it under the process Hyundai Motor America and Genesis brand officials rolled out Jan. 26. Genesis said its stand-alone dealership network would have around 100 stores in places such as Chicago, Los Angeles, New York, Miami, Washington, D.C., and San Francisco. Thirty of the markets will have just a single point.
Nearly 500 other Hyundai stores carrying just the G80 alongside their Hyundai-branded products will be phased out of the Genesis network. (The G80 was formerly sold as the Hyundai Genesis.)