The rumor mill has churned out some exciting news for luxury car enthusiasts! It looks like a major split is imminent in the world of cars and this one might garner a mixed reaction from dealers and consumers. Get the latest scoop here and if you are looking to buy or sell a Hyundai car in Dubai, UAE, CarSwitch is at your service.
Reports suggest that Genesis, the luxury arm of famous Korean automaker Hyundai, is accelerating its plans to separate from the network of Hyundai dealerships. At the moment, Genesis cars can only be sold at the normal Hyundai dealerships and require a special showroom-within-a-showroom setup.
Currently, there are two luxury sedan models that sell under the Genesis name; the G90 and the G80. News about the fast-forwarded plans to set up the brand separately come ahead of the launch of the highly-anticipated, BMW 3-Series rival, the G70.
What will it entail?
Plans have been put in motion to enable Genesis a clean break from its parent company and the brand hopes to have a framework prepared by the middle of next year. That’s fast, considering that it’s only been over a year since they began selling cars. The move will mean that Genesis cars will no longer be offered at the Hyundai facilities and only their full-franchise outlets will be allowed to do the warranty work on Genesis cars. Hyundai dealers hoping to add that warranty work to their services to improve bottom line will not be happy at the prospect. On the bright side, though, all Hyundai dealers will be eligible to apply for a Genesis franchise.
Why is this happening?
Apparently, people looking to buy luxury cars are not comfortable with the idea of shopping for their luxury sedan at the same showroom as the regular Hyundai vehicles. It’s not a new idea either because similar concerns pushed Lexus to set up separately from Toyota and Infiniti to split from Nissan. Luxury car shoppers expect a luxury experience and that’s what they will get with the stand-alone Genesis showrooms.
Moreover, since the buyers will be willing to pay extra when buying cars at a high-end setting rather than an ordinary showroom, it means more profits for the dealerships. Clearly, it’s a win-win for both.
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