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Genesis changes its mind on retail plans

Genesis will apparently open the doors to its nascent dealership network to all existing Hyundai dealers, reversing its earlier plan to launch a separate, much more limited retail network as a way to distinguish the brand. The brand's general manager, Erwin Raphael, told Hyundai's dealer council last week that Genesis would allow all Hyundai dealers the opportunity to sell the luxury brand in the U.S. That amounts to a 180 on plans announced in January, when the two-year-old spinoff said it planned to build out a network of about 100 Genesis retailers in around 48 mostly urban luxury markets, with first dibs on the franchises going to high-performing Hyundai dealers. The plan was to have separate branding, with the long-term goal of having them all operating out of standalone facilities after launching in temporary or shared showrooms. Per Automotive News, Genesis will no longer confine its sales to those 48 markets. All Hyundai dealerships will be able to apply to be licensed as Genesis dealers, though 2019 models will only be shipped to the newly franchised Genesis retailers. About 350 "elite" Hyundai dealerships that already sell the G80 and G90 sedans can continue to sell them, or take previously offered settlement money and move on. Those who become or remain Genesis dealers will have to sign new or separate franchise agreements that were expected to go out this week or next. Genesis will still require separate, standalone stores and service facilities. The news will likely please Hyundai dealers who have been frustrated or confused by Genesis's rollout strategy and are eager to play a role in the brand's growth. It also could provide a sales lift for Genesis, whose sales during the first four months of 2018 fell 17.5 percent to 5,390. They'll also be hoping for a boost when the compact G70 sedan launches this summer. Related Video:

No N performance models for Genesis, but Hyundai might get a Tucson N

Although Hyundai still hasn't fully revealed its first N product, the i30 N that we will see with an Elantra badge, the company is apparently hard at work at various N-branded follow-ups. The head of the N performance division, Albert Biermann, spoke with Australia's Drive, and revealed some unexpected details about the future of the division. Among the surprises was the revelation that there are no plans for Genesis N models. This is a bit of a shock considering that just last year, Biermann told us that there was a five-year plan in place for N products, and that Genesis vehicles were part of that plan. Among the vehicles that are coming, Biermann said the division is developing a B-segment vehicle and an SUV. The B-segment car is likely the European i20 hatchback. Hyundai uses the i20 for World Rally Championship, so it would only make sense to capitalize on that association. As for the SUV, Drive believes it is the Tucson, since Biermann mentioned the little crossover quite a bit when speaking to the publication. The Tucson would also be the most logical candidate for an N variant, since it's currently the smallest crossover in the Hyundai line-up. As such, it should be the easiest to make sporty, since it's inherently lighter and more maneuverable than other crossovers in the lineup. Biermann also seemingly revealed that the next N-badged car after the i30 N hatchback will be a "fastback" version of the same car, which Drive describes as a coupe. We don't expect this to be a traditional compact coupe, though. Last year, AutoEvolution reported that Hyundai would release a coupe-like five-door version of the i30 in the vein of the Audi A7 and A5 Sportbacks. This also seems more likely than a traditional coupe since Hyundai ceded the segment to the Civic with the death of the previous Elantra coupe in 2015, and its Kia Forte Koup cousin this year. Related Video:

Hyundai expanding US plant capacity for SUV production

With cheap gasoline still driving CUV and SUV sales, three anonymous sources are reporting to Automotive News that Hyundai is looking to expand production at its Montgomery, AL factory with an eye towards production of high-riders. The Montgomery factory is currently responsible for Elantra and Sonata production, although as both sedans have faced slagging sales, Hyundai is seemingly taking a second look at its production priorities. "It's a new assembly line right next to the current Alabama line. State of Alabama is negotiating final terms," one of the sources told AN. The other two sources, meanwhile, indicated that while the company has been mulling expanded production in America, a final decision hadn't been made yet. As for what vehicle could join the Elantra and Sonata on a new line in Alabama, Korea Investment and Securities auto analyst Suh Sung-moon told AN the Santa Fe could move from its current home at the Kia facility in Georgia, although the Montgomery factory could also accommodate production of the compact Tucson (it's unclear if Suh was referencing the next-generation Tucson that debuted in Geneva or the current model) or even a pickup truck, were Hyundai to go such a route. Meanwhile, AN reports that Korea's Yonhap News Agency expects the Montgomery facility to be able to produce 300,000 vehicles, including an SUV, by 2017. While Hyundai declined Automotive News's inquiries, we have our ear to the ground for any official information from the South Korean marque.