Hyundai, Genesis dealerships find success going their separate ways

Hyundai dealers in 2022 increasingly shed the Genesis brand from dealerships that had carried both franchises, according to Automotive News' latest annual dealership census.

The number of standalone, Hyundai-only U.S. dealerships jumped by a fifth, or 80, to 473 stores in 2022. Hyundai franchises rose slightly to 835 as of Jan. 1, up from 827 in 2022.

Hyundai spokesman Michael Stewart said the number of Hyundai-exclusive locations increased "as many opted not to continue forward with Genesis." Dealers building standalone Hyundai facilities under the brand's Accelerate facilities program also contributed to the gains, he said.Genesis lost 36 franchises in 2022, or 12 percent of its network, but opened its first two exclusive stores last year, starting 2023 with 270 franchises.

Automakers grant individual brand franchises to dealers. In its census, Automotive News defines standalone, exclusive sites as those containing a single franchise and service center, but no other make, not even a sibling brand.

Genesis launched in 2016 in the U.S., with about 840 Hyundai dealers selling and servicing the Genesis G80 and about 350 selling and servicing Genesis G90 sedans. In 2018, Hyundai told dealers they could continue to sell Genesis if they opened exclusive Genesis locations; more than half took settlement payments and exited.

"The focus at Genesis is on providing an exceptional purchase and ownership experience for our customers," spokesman Jarred Pellat said in an email to Automotive News. "To deliver on this promise, we are working with our retail partners to invest heavily in the development of standalone facilities for the brand, which will enable us to provide a curated experience dedicated to Genesis."

Genesis has more than 100 exclusive locations in the works and expects to open several this year, Pellat said in early March. Dealers have since opened two exclusives: Bergstrom Genesis of Appleton in Wisconsin and Coconut Creek Genesis in Florida.
Fewer Genesis franchises coupled with higher Genesis sales — up 14 percent to 56,410 vehicles and marking its first time above 50,000 — led to a higher average throughput of 196 vehicles, up 27 percent.

Pellat called 2022 "a milestone year" for Genesis with the start of sales on its first two electric vehicles, the GV60 and Electrified G80, plus the launch of the next-generation 2023 G90.

Hyundai's throughput, meanwhile, fell 2.5 percent to 872 vehicles per franchise with sales of 724,265 vehicles, down 1.9 percent from 2021.

Its throughput was better than the industry's 8.8 percent average decline to 425 vehicles sold per franchise.