Genesis aims to become major luxury car player

Other luxury brands had years to plan the spinoff of their luxury brands. Hyundai did it in nine months.

It’s fallen to a veteran auto executive Erwin Raphael to try to create a separate identity around the brand called Genesis. That has meant trying to get the word out and educate the dealer network about what it’s going to take to please luxury customers.

Whether it’s building the brand or the quality of the cars themselves, “it’s all about the details,” says Raphael, Genesis’ general manager in the U.S.

Fortunately, he’s starting off with two models that have already gained good reputations under the former names as Genesis models. Now those two cars, the midsize G80, formerly the Hyundai Genesis, and the full-size G90, successor to the Hyundai Equus, will anchor Genesis as stand-alone nameplate.

There will be about 350 Genesis dealers to start nationwide, but Raphael says the plan is that most buyers will seldom need to visit them. He says his goal is to take care of many service needs without a trip to the dealer. “We’ll come to you wherever you are,” Raphael says, “and bring a loaner car as good as what you have.”

Under Hyundai’s past CEO, John Krafcik, Hyundai dabbled in trying to build the home- or office-service experience. Raphael thinks he can double the participation rate to about 80%.

To get there, Raphael says he has created a Genesis Institute, in which 1,813 managers from dealerships undergo three days of training to learn every aspect of the brand — from how to treat customers to detailed knowledge on the cars. Raphael, for instance, says they will be driving cars from Genesis’ biggest competitors.

“It’s always a long-haul process when you’re starting a new vehicle brand,” says Karl Brauer, executive publisher of Kelley Blue Book.

Toyota with its Lexus brand took a decade from the start of its brand before it could challenge the German luxury stalwarts.

“We’ll come to you wherever you are and bring a loaner car as good as what you have.” Erwin Raphael, Genesis GM