Genesis cars win accolades, offer value — so why are sales so bad?

[Kia Stinger]

Filed under: Earnings/Financials,Audi,BMW,Cadillac,Hyundai,Land Rover,Lexus,Mercedes-Benz,Porsche,Volvo,Sedan,Luxury,Genesis

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Genesis cars win accolades, offer value — so why are sales so bad? originally appeared on Autoblog on Tue, 31 Jul 2018 09:30:00 EDT. Please see our terms for use of feeds.

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[mldavis2]

Too many people are either brand snobs or emotional buyers. If BMW claims "the ultimate driving machine," then whether you agree with that or not, BMW owners know many people DO believe the advertising and they know you are driving "the ultimate." Likewise, "the best or nothing" implies without saying it, that M-B is the best and if you aren't driving one, you have the equivalent of a golf cart.

On the other hand, how many people really look into professional auto reviews and read car magazines? Certainly not many M-B owners unless they are buying AMG level cars. Likewise with BMW, the M-drivers know the specs, usually, and buy based on those stats. It is difficult to overturn the establishment, and it takes time for people to become disillusioned with their maintenance costs and repair bills. To some it still doesn't matter because it's the claim and the legend, not the current product.

Then there is the luxury factor. Kias and Hyundais are not status symbols to most people. They have a history of being cheap imports, not something to park in the driveway and show off to the admiring neighbors. A lot depends on the dealer experience as well. In my part of the world, we have a very successful Kia dealership that sells a ton of Kias (not Stingers unless they are hiding.) Kias are becoming as common as Toyotas and Hondas in the suburbs here, so it will take time and you have to get people to drive them. It's very difficult to overcome old stereotypes for most people. If you had good experience with one brand, why take a chance on another one ... unless you're seeking brand status.

 

[YEH]

^ As previously stated, the current downturn (which is pretty drastic) is due to Genesis wanting the Hyundai dealerships (esp. the ones which will no longer carry the G80 or the G80/G90) to be pretty much clear of the old inventory when the select dealerships that have gotten (or will be awarded) a Genesis store start getting deliveries of the 2019 Genesis models, including the G70.

Hyundai stopped shipping G80s/G90s to the US more than 3 months ago.

Even w/ this artificially self-constructed downturn (of course, some of the downturn is due to the decline in sedan sales), the G80 still outsells the GS, Q70, XF and A6 (and likely the CTS), altho it no longer outsells the GS by the amount it did before (was outselling the GS by more than a 2:1 ratio).

The past 2 months, Audi has sold a measly 157 and 309 of the A6 and and 34 and 51 of the A8.

Not that the A6 or A8 were ever big sellers, those are particularly bad sales #'s, but those 2 models are about to be replaced (but still, neither BMW or MB see such scant sales when their models undergo a lull transitioning from the old to new model).

 

[ElChanclo]

Too many people are either brand snobs or emotional buyers.

That just means they're making a purchase for different reasons than you. They soothe their egos with money, to each their own.

Brand recognition becomes more important in more materialistic societies, so image and marketing become more of a factor for success. You need more than just a good product, you need to symbolize opulence. Shifting public opinion of your brand from "value oriented" to "premium" takes time and effort. Their effort is good, now it's a matter of time.

 

[Kia Stinger]

My answer to the question is - no CUVs...

 

[YEH]

^ Having CUVs would certainly help, or even the G70 sedan.

But the reason for the pretty drastic decline in G80 and G90 sales (only for the past 2 months) is that Genesis stopped production of the '18MY G80 and G90 in February (which explains why they stopped shipping them in March/early April).

The G70 was supposed to launch late April/May, as well as the 2019 G80 and G80 (Canada has been selling the 2019s).

But due to the hold-up in the dealership switch-over, everything has been delayed and the supply of the 2018's had to be stretched out (Genesis has not been supporting sales via advertising or incentives).

Along the same lines, sales of the A6, A8 and C and E Classes saw drastic decline last month as well due to inventory shortages (altho, there are more A6's on the lots than the G80).