Hyundai is finally ready to answer dealers' wishes with a utility vehicle blitz. But some retailers may be inclined to hold their applause when they gather with brand leadership Sunday for this year's make meeting.
The Korean automaker has prepped a flurry of products to fill out what had been a thin light-truck portfolio. The Kona, the brand's first subcompact crossover, is on the market. The redesigned Santa Fe, the brand's midsize crossover, is on the way this summer in regular and XL sizes, with a more muscular stance and premium feel, along with Hyundai's first diesel option in the U.S., due in 2019.
The freshened Tucson compact crossover will be unveiled next week during the New York auto show. Sales for the outgoing model are up 32 percent through February. And the new hydrogen-powered Nexo crossover, while not a volume player, will be a technological flagship for the brand.
In all, Hyundai plans to introduce eight new or redesigned crossovers to the U.S. by 2020, with varying shapes and powertrain choices.
"We are just starting to see the product pipeline get a little bit closer to parity with what consumers are demanding," Andrew DiFeo, Hyundai National Dealer Council chairman, told Automotive News.
But the good vibes from Hyundai's course correction in the truck market could be tempered by lingering frustration over Genesis, the luxury brand that has been sharing dealership buildings with Hyundai's value-priced products.
Under an accelerated retail overhaul plan triggered last year, Genesis will get a stand-alone retail network of about 100 stores, concentrated in 48 mainly urban markets. And while certain elite-level Hyundai dealers in the designated markets will get a chance to bid on those franchises, the vast majority of Hyundai retailers will lose their right to carry Genesis products.
The castoffs will be compensated for their investments in inventory, training and equipment, with a formula based in part on sales volume. But some who were looking forward to a future -- rather than a settlement -- with the fledgling luxury brand are disappointed. Those tensions could bubble up Sunday.
One dealer who asked not to be named told Automotive News last month that he felt blindsided by Genesis' decision to accelerate the separation of its retail network and significantly reduce its dealer count. He had been looking forward to selling the G80 and G90, but now his market isn't getting any Genesis stores. He said he feels the compensation he was offered isn't enough.
He thinks Genesis is trying too hard to be like Lexus.
"We believed in Hyundai and wanted to be a part of the new franchise," said the dealer, who invested around $100,000 in showroom enhancements and training to qualify to carry the higher-end Genesis products. "It's like you go to the casino and you won the jackpot, [but] instead of paying off, they want to give you the $10 you walked in with."
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