Welcome to another edition of the Car Dealership Guy Podcast Recap—a rundown of key lessons from top operators, founders, and execs shaping the future of auto retail.
Today’s guest is Randy Parker, CEO of Hyundai and Genesis Motor North America.
Randy breaks down how Hyundai is navigating a market that's down 5% in early 2026, absorbing the cost of 15–25% tariffs, managing dealer profitability and inventory pressure, and making tens of billions in U.S. infrastructure bets designed to secure the brand's next 50 years.
The market got harder, but Hyundai is still chasing records.
January and February came in with the overall market down 5%, and the headwinds from last year (tariffs, the IRA subsidy going away, negative consumer sentiment) remain.
"This past year was by far one of the most toughest years that I've experienced in the automotive industry."
Despite all of it, Hyundai posted five consecutive years of record retail sales and is targeting a sixth.
Tariffs are costing more in 2026 than they did in 2025.
The rate dropped from 25% to 15%, but because that rate now applies to a full calendar year, the total tariff bill is actually higher than last year.
"When you look at it pound for pound, we're going to actually pay more tariffs this year than last year."
Parker says it’s a counterintuitive reality that's putting pressure on the bottom line even as the headline number looks like relief.
Inventory levels are the single biggest pressure on dealers right now.
With the market softening in January and February, inventory that made sense a few months ago is now sitting longer and squeezing profitability.
"Probably the one thing that is keeping me awake at night right now is just the inventory levels."
The plan is an aggressive move to bring dealer inventory levels down by the end of Q2, worked out directly with the National Dealer Council.
Hyundai is leaning into EVs while most OEMs are pulling back.
Rather than retreat from electrification as the market shifts, the strategy is to demonstrate continued leadership and treat EV commitment as a competitive differentiator.
"Although the market has turned upside down, we want to demonstrate leadership in that space."
Ionic 5 sales were up 33% in February. Hybrid sales were up 79% year-over-year. The goal, as they see it, is to be ready for wherever the customer lands.
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The best dealers are a fabric of their community—and that still works.
With all the digital tools and lead sources available today, the fundamentals of community presence and local brand building haven't lost their power.
"Invest in people, invest in training, invest in resources, invest in the community. If you do those things and you become a fabric of the community, the consumers will credit you with their business."
A new co-op program is giving dealers more tier-three dollars to build their personal brand locally, with the directive being: get back to basics.
Customers are starting online but closing in the showroom.
Through the Amazon Auto partnership, the customer journey is revealing itself: shoppers begin the process digitally, then stop and come in to finish the transaction in person.
"A lot of customers will start the process online and then what happens is they'll stop and come into the dealership to complete the transaction."
It's a reminder that digital channels and physical dealerships work together when the experience at both ends is strong.
Turnover is one of the fastest ways to destroy dealership profit.
When asked what single behavior drains profit faster than most dealers admit, the answer was immediate.
"Turnover."
High churn burns training investment, disrupts customer relationships, and erodes the culture that makes a store competitive. It's a cost that rarely shows up on one line item but shows up everywhere.
Selling cars through dealers is conviction, not policy.
On direct-to-consumer models and OEMs attempting to bypass the franchise system, the position is unambiguous.
"Our business model is to sell cars through dealers, and that's never going to change as long as I'm sitting in this chair."
Dealers are the front-facing image of the brand, and that relationship is treated as a structural advantage, not a legacy constraint.
Genesis is shrinking its dealer network on purpose.
The brand once had over 600 dealers. Today it's at 200, and the target is to bring it down further, not to abandon the brand, but to concentrate throughput and raise the customer experience.
"The network is shrinking, which is a good thing. We want to shrink it just a little bit more to provide more throughput and provide a better customer experience."
For dealers already invested in GRD facilities, the math is improving. For those on the fence, the message is to talk to the 90 who've already built and see what the return looks like.
Passion is the leadership trait that matters most.
When asked what he values more now than he did ten years ago, the answer wasn't strategy, data, or operational discipline.
"You got to have a passion for this business. I enjoy waking up coming to work every single day because I'm so passionate about this business."
The surfing analogy says it well: you can stand on the sideline watching the waves come in, or you can get on the board. The dealers and leaders who catch the big ones are the ones who stayed in the water.
