Aug 7, 2017, 8:49am ET

Genesis brand to split from Hyundai dealerships

Some buyers are apparently discouraged from dropping $60,000 in the same showroom that sells and services standard Hyundai-badged models.

Hyundai is fast-tracking its plan to further separate Genesis from the parent company's mainstream brand.

The luxury sub-brand was initially launched by rebranding the Hyundai Genesis to the Genesis G80, which can still be sold and served by any Hyundai dealer. The next Genesis model, the G90 sedan, required participating dealers to create a unique Genesis space within the Hyundai showroom.

The company initially promised to allow Hyundai dealers to continue selling the G80 for several more years, while Hyundai dealers with a dedicated Genesis space would be able to operate concurrently with standalone Genesis dealers and continue to service both brands.

An Automotive News report suggests the Korean automaker has now decided to implement a new plan that will hasten the separation of both brands and prohibit Hyundai dealers from servicing Genesis vehicles.

"For this brand to really survive and thrive, and for us to develop the culture within ourselves and within our dealer network to support and take care of these customers, we do in fact have to expedite our process of separating our brands," Genesis general manager Erwin Raphael told AN.

Full details remain unclear, though the timing appears to coincide with Genesis' plan to launch its first true dedicated model, the G70, which could be unveiled before the end of the year.

Apparently expecting a legal battle with some dealers that have invested in the Genesis transition but will inevitably be excluded from a limited number of Genesis franchise licenses, Hyundai is said to have retained outside attorneys ahead of an official announcement.