Genesis laid out the final details of its new dealer compensation package while preparing for its first off-lease vehicles headed to the certified pre-owned lot.
The young brand has new management, and its first crossover will soon hit the market. And Genesis dealers are bracing for rapid growth and the challenges that come with it.
Company executives provided details Saturday at the make meeting about what essentially will be an overhaul of nearly every aspect of the brand's U.S. operations. Included was final information on a facilities program rolled out this year that creates more differentiation between Genesis and the Hyundai dealerships that sell the luxury vehicles.
Peter Lanzavecchia, owner of Genesis of Cherry Hill in New Jersey and a member of the national dealer council, said the meeting helped dealers understand the changes that are coming and the timeline for their implementation over the next few years.
"Everything is happening so fast that it's not getting out to the dealers fast enough," he told Automotive News after the meeting. "So the dealers were like, 'Wow, I didn't know that. There's the facility, there's the program, this is how it integrates with the Hyundai program — I get it.' "
Lanzavecchia praised Genesis executives for developing an aggressive plan to move to the next level. The brand currently sells three sedans and only recently finished forming its dealer network. Hyundai Motor America CEO Jose Muñoz has been on the job less than a year, and Genesis North America CEO Mark Del Rosso started in October.
The dealers also received details about the product pipeline.
"We got a short- and long-term look at the whole product deployment strategy for the brand," Lanzavecchia said. "And it is brilliant."
Genesis executives have said publicly that a compact crossover will come next year, following the arrival in showrooms of the midsize GV80 crossover by summer. An EV will come around 2022.
The company also revealed that a fresh advertising spot is being shot with Genesis' new brand ambassadors, musician John Legend and his TV-host wife Chrissy Teigen. Their debut spot ran during the Super Bowl.
Meanwhile, as details are being finalized for a CPO plan, Genesis dealers are buying up the first Genesis off-lease cars. "What we don't have yet," Lanzavecchia said, "is that specific retail incentive that's only available on a Genesis CPO."
He said an announcement on that will come in the next week or two.