Spy Shots: 2008 Equus shows Hyundai is serious about luxury
Hyundai's looking to bust into the highly-competitive entry-level luxury field with the 2008 Equus. The South Korean automaker already has the safety and luxury appointments thing down with the Azera, but the Equus appears to promise much more. With a spec sheet that includes rear-wheel-drive, V8 power, and a $30,000+ sticker price, Hyundai is clearly trying to follow the criteria that helped brands such as Lexus and Infiniti become established players in this tough segment.
Toyota was able to make Lexus a legitimate luxury brand in the states within 10 years with low prices, tons of standard equipment, and rock-solid reliability. What remains to be seen is whether a vehicle at this price point can survive a battle of the luxury sedans while sporting a Hyundai badge on the front grille.
[Source: The Car Connection]
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Reader Comments (Page 1 of 2)
Chad 12:41PM (1/25/2007)
Hyundai already has the Azera which to me looks better than the Equus from what i can see in the photo but maybe it will be nicer...
Also to make it a big success keep the V8....
But still i cant see paying over $30,000 dollars for a Hyundai when you can get a Lexus or a Lincoln with the same features for around the same price ... maybe even cheaper ..
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Loren 1:00PM (1/25/2007)
I'll take one! Will go well with my 2006 Sonata.
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james 1:48PM (1/25/2007)
I believe Hyundai can do it - they have come so far in the last 10 years. I'm currently a Lexus/BMW owner who considered the Azera late last year but passed because it didn't have all the luxury features/options/power that I wanted. A more luxurious, V8 powered Hyundai would certainlly make my consideration list.
James
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Brian 12:50PM (1/25/2007)
Hyundai is taking the right steps now towards ridding itself of its entry car image. But, I thought Hyundai was going to make a seperate Luxury Brand division for this car? Isn't that a wiser idea? Anyways, regardless of the brand, this is going to be one perception-shattering, extremely high value car!
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Michael Karesh 1:06PM (1/25/2007)
I'd emphasize the + in that $30,000+. The Azera Limited starts at nearly $28,000, and the Equus looks like a lot more car.
Hopefully they have better luck with their 5-Series knock-off than Lincoln had with its. Did anyone notice when the Lincoln LS was recently discontinued? Coincidence, or did they sell the tooling to Hyundai?
For Azera pricing:
http://www.truedelta.com/models/Azera.php
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bgdc 1:25PM (1/25/2007)
Couple things...
1. You CANNOT get a Lexus or Infiniti for 30k with a V8. You're in the 40s with an Infiniti and realistically the 50s with a Lexus to hit a V8.
2. Everybody laughed at Toyota before the LS400 dropped. Then it sold like gangbusters and changed everything for luxury car makes. The G35 was Infiniti's gasp to stay alive...and it worked because they offered 85-90% e46 BMW 330i/ci performance for 6k less.
Hyundai is taking a page directly from the Toyota/nissan playbook. Bring a car to market that matches the competition or nearly does and offer it for 20-30% less than those competitors.
People will flock to the Hyundai V8 sedan if it's got Lexus like style, size, luxury and performance for 20-30% less money. They're already taking a bit into the Camry and Accord with their latest midsize family sedans. The question is - will this car target the GS/M or the LS/Q?
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toto 1:28PM (1/25/2007)
Hyundai is trying to reach higher status way too fast! People still perceive them as a manufacturer of relatively good quality and affordable cars and many people don't see them quite on par with the Japanese. If Hyundai start producing cars that are priced at above $30-$35k, they are running the risk of being like VW with the Phaeton. Nobody expected a VW to be more than $80k - the same way, nobody expects a Hyundai to be more than $35k!
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jstand6 1:57PM (1/25/2007)
Mitsubishi Diamante. Mazda 929. Mazda Millenia. These are three examples of extremely competent cars that were equal to or better than the competition in the entry-level luxury market, with discount prices to lure buyers to them. All three failed miserabily. The problem lies not in the car, but on the logo that sat in the grill. Most buyers in this segment are buying for that status logo.
To get into this market, you need that luxury marque. Toyota, Nissan, and Honda realized this, and created the Lexus, Infiniti, and Acura brands. Mazda had realized this too and was about to introduce the Amati brand, but turned back at the last minute because of Infiniti and Acura's downturn at the time. The Millenia had already been developed to be Amati's entry-level sedan, but it was rebadged as a Mazda so that all of the development costs wouldn't have gone to waste.
If the Millenia had worn the Amati badge, it would have been more successful than it was as a Mazda. Spending $30k+ on a car is not the same when it is sitting next to a $10k base-model Protege or MX-3 (at that time).
I think Hyundai will find this out as they try to convince consumers to buy the Equus that's sitting next to that Accent, expecially when for the same money, that consumer can buy an entry-level Lexus, Mercedes, or BMW. Sure, the Equus will have more features and power, but what most people will be looking at is that same Hyundai badge sitting in the grill of a car that's trying hard to be the cheapest car in America. They'll think to themselves, "If other people see me driving this Equus, and they see the Hyundai badge on it, will they really think 'I've made it' or will they just immediately label me as cheap?" Unfortunately, this is the way most consumers are, particularly in this segment.
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jg 2:05PM (1/25/2007)
Wheels are too small. Same with all Hyundais.
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PuffyC 2:07PM (1/25/2007)
I have to agree with jstand6. The VAST majority of people who buy luxury cars are buying a brand/lifestyle, not a mode of transportation. The Equus can be the best car in the world but if it says Hyundai and is sitting on the lot next to Accents and Sonatas then it'll still be considered a second class wannabe vehicle. Rebrand it with some made-up luxury name (like Acura, Lexus or Infiniti), then combine it with some aspirational marketing campaign that leaves out the name Hyundai, and the next thing you know you'll have poseur yuppies banging down your door.
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Bradley 2:45PM (1/25/2007)
That's not a Hyundai Equus, that's a Nissan Altima. Must have been a photo mix-up somewhere.
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Tal D 2:54PM (1/25/2007)
The Koreans must be serious about entering all segments of the auto industry. They have been offering a lot of value for less $$ than Japanese or Europeans as of late. The Equus will be another example; or so it appears.
The Japanese have been producing and still produce vehicles of "the gold standard" ratings.
I believe Hyundai may be closing the quality/value gap a bit more quickly than the Japanese did when they were closing the quality gap on the American and European auto manufactures.
More advanced computer systems allowing better , more efficient tecnology and design to be developed,
a more efficient assembly process process and very good management practices may be a few reasons the Koreans have made the rapid advancements in the past few years.
Are they introducing too much too fast? Or are they just joining the segments already created?
According to recent reviews of Hyundai products, quality and overall value has greatly improved. Has it reached an equal level or bettered that of the Japanese at this time?
I sincerely believe only time will tell whether they have proved themselves enough to be on the same quality level as the Japanese cars. As they do that or when they reach that level and the American consumer has enough confidence in the quality and reliability of Hyundai's to consider them as eqaul or better values vehicles, then perhaps they will retain an equal or better depreciation value.
We have a history of embracing quality once the products have proven themselves.This won't be any different.
Enuff
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PJ 2:57PM (1/25/2007)
IMHO, the intellectual leap required to accept Hyundai's jump to a $35K vehicle is much easier than VW's jump to an $80K vehicle. Especially since, unlike VW, there's been no bitterness surrounding Hyundai's ascent in the automotive ranks. They're perceived as overachieving, rather than "abandoning their roots."
What I find striking about these spy shots is how closely the Equus' proportions and greenhouse resemble those os the previous-gen Altima. Not good if you're intending to compete in a higher class, although the masked front and rear fascias might be the most distinctive bits.
The drivetrain layout is what impresses me most about this car. Hyundai managed to catch the V8/RWD trend just as quickly as GM and Ford, companies you'd expect to have a much better sense of what American buyers want.
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Ian 3:54PM (1/25/2007)
Where's the Equus versus Pontiac G8 road test?
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Jason 5:49PM (1/25/2007)
This all sounds too close to the Azera. Hyundai is flooding the catagory for itself.
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Big jim 6:05PM (1/25/2007)
The wheels look like they were stolen from a pontiac
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Brian W 7:41PM (1/25/2007)
They spent more on advertising and bigger rebates on an almost new line up. Their sales last year were flat and their boss has to go back to jail. Kia's cheaper cars sold well but I don't see people paying more for Hyundai's when their not moving cheaper models.
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JarryHames 8:09PM (1/25/2007)
I agree with jstand6 - I don't see too many smart consumers willing to spend $30,000 for a Hyundai. It could be a steal with loaded options and it's still a Hyundai. I'd save the money and get a CPO Lexus or Infiniti for sure.
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Howard 8:26PM (1/25/2007)
Looked at the Azura. Lots of car for the money. Bling interior look turned me off. Acura/Honda/lexus have much "cleaner" interior. Metal interior facade of the Azura looked like it was from a 50's diner.
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ronin 7:53AM (1/26/2007)
This is a gamble, but will prove to be a landmark product.
Just as Nissan introduced the G35 and trumped its BMW counterpart (per Motor Trend's recent comparo), relegating the erstwhile Bavarian leader to offering 80% of the Infiniti at only $7000 more, so will this new Equus further blur the distinctions.
What distinctions? Indeed.
This will demonstrate that a car is only a consumer product that is mass-manufactured. No matter how much aura and voodoo and juju we try to ascribe to any particular make or model.
If Hyundai can do it at a human price point (ie, only 2/3 of the average annual American income), we see that, yes, the entry level luxury performance vehicle, too, is just an appliance, no less so than the Camry. Albeit lots more fun to drive, at those rare times you are actually driving for fun.
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