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Genesis Moving to Standalone Dealerships


rmc523

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https://www.autoblog.com/2018/01/29/genesis-luxury-sedan-dealership/

 

 

 

Hyundai is informing its dealers that its 2-year-old luxury brand Genesis is ready to fly the coop. The company says it will focus in 2018 on building out a network of around 100 Genesis retailers with the goal of eventually operating standalone facilities to better distinguish the high-end brand.

First dibs on applications for the new franchise licenses will go to existing dealers who also sell Genesis in "defined key markets," the company says. New Genesis showrooms will initially operate from temporary or shared facilities, with standalone facilities taking shape over the next three years.

I wonder if Lincoln will move back to standalone facilities over time. Being paired with the local Ford dealer can't help the luxury image and the "tarted up Ford" reputation.

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https://www.autoblog.com/2018/01/29/genesis-luxury-sedan-dealership/

 

 

 

I wonder if Lincoln will move back to standalone facilities over time. Being paired with the local Ford dealer can't help the luxury image and the "tarted up Ford" reputation.

 

Lincoln is building lots of stand-alone dealerships in the Middle East. I don't know if there are any similar plans for the USA. https://media.ford.com/content/lincolnmedia/lma/en/news/2017/11/14/bespoke-luxury-customer-experience-the-driving-force-behind-linc.html

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First, Lincoln doesn’t build dealerships. They can’t by law. Second - they’ve been trying to get dealers to build standalone dealerships for years. They have the standards and I think they’ve offered assistance but it’s up to the dealer to make that investment. A few have. If they get more products out with more upscale features and performance that might entice more dealers to upgrade.

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I used to get my Fords serviced at the local Lincoln dealer. They were great, family owned, awesome service. Antiquated building, and away from where motor-row ended up. They sold out to the mega-low-mart Ford store that I drive 20+ minutes out of my way to avoid. Mega-low-mart Porsche is building a new store, and I suspect their existing tiny Porsche store, which is next to the Ford store will go Lincoln.

 

The Genesis vehicles look great. They need SUVs though.

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I think stand-alone dealerships are key to distinguishing Lincoln from Ford. It annoys me when I drive by the Ford dealership in Naperville, and all the Fords and Lincolns are mixed together. I believe the dealership owns another building down the road and perhaps when Lincoln has enough vehicles to stand on its own, they may build out that facility as Lincoln dealership. I dont think Lincoln needs to have a service facility on the property if they have a Ford service nearby to transfer the Lincolns to.

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I remember the debacle when the nearby multi-outlet chain bought the Ford/Lincoln/Mercury dealership in my home town...after the chain poured a ton of $$$ into the place to remodel and bring it upscale since they already had a Ford store less than 15 miles away, their plan was focused on Lincoln and to a lesser extent, Mercury and of course offering Ford's as an aside....well, we all remember the great re-alignment a few years back that first saw Mercury getting axed and then to add insult to injury, when Ford decided to cull the under-performing Lincoln stores to help "build the brand", the newly renovated dealership lost the Lincoln line since there was already an established and renovated dealership (not the one that the multi-outlet chain owned), less than 15 miles up the road. The multi-outlet chain ended up with a Ford only site that was competing with not only the Ford/Lincoln store that the competitor was operating, but also their own Ford store. So, they pulled the Ford franchise out and turn it into their multi-outlet "Used car supercenter" which failed miserably....the multi-outlet chain ended up selling the dealership property to a competitor that was over 100 miles away that turned the operation into a Mitsubishi dealership....

I haven't been back since.....

Edited by twintornados
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First, Lincoln doesn’t build dealerships. They can’t by law. Second - they’ve been trying to get dealers to build standalone dealerships for years. They have the standards and I think they’ve offered assistance but it’s up to the dealer to make that investment. A few have. If they get more products out with more upscale features and performance that might entice more dealers to upgrade.

 

Thank you sir for the correction. In the Middle East, independent companies build and operate the dealership facilities. In Abu Dhabi for example, Premier Motors by Al Tayer Group operates all Lincoln, Jaguar, Land Rover, Ferrari, and Maserati dealership facilities in that emirate.

 

In the U.S., dealerships are also independent businesses. Many U.S. Lincoln dealers struggle with low volumes and low profitability. That makes the conversion of lots of Ford-Lincoln dealerships into standalone dealerships unlikely. Dealerships for Ford and Lincoln together as a group have among the lowest profits per franchise of any brand. Hyundai and Kia dealerships are lower still. That doesn't bode well for Genesis' plan for standalone dealerships. http://www.autonews.com/article/20161128/RETAIL07/311289916/which-brands-generate-the-best-profits%3F

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