While elite-level Hyundai dealers in key markets are relieved to have the chance to bid for Genesis franchises, other pockets of the dealer body are bitter over the tumultuous rollout of the luxury brand's retail network, and the fact that they'll be left out of it.
The Genesis launch has been less than optimal, conceded Andrew DiFeo, chairman of the Hyundai National Dealer Council. It took some back and forth with the automaker to get something close to a fair deal to compensate the disenfranchised dealers, DiFeo said, but some dealers still aren't happy with the outcome.
When the rollout is complete, the vast majority of Hyundai's 850 dealers will lose their right to carry Genesis products, including all of the nearly 500 stores that sell only the Genesis G80, as Genesis trims its network to about 100 stores concentrated in 48 markets.
"We stressed the importance that there needs to be compensation, and the compensation can't just be for buying back cars and parts," DiFeo told Automotive News. "There is a loss of value in that dealer's business personally and professionally, and the numbers they're coming up with have to be commensurate with that. We never said, 'It needs to be this dollar amount.' But we said the calculation needs to factor in all of these things, and I think they got pretty close to that."