Watch out, Lexus: Hyundai considering premium brand
Hyundai's product line-up has been both steadily improving and moving up-market, first with the launch of the Veracruz luxury SUV and now with the announcement of the upcoming Genesis RWD V8 luxury sedan. The emergence of the premium Hyundais has lead to industry speculation that the burgeoning Korean carmaker could be considering the launch of a separate premium brand to compete with its Japanese rivals.
Although they've far from confirmed any such decision, Hyundai execs have suggested it could be in the cards. Product planning VP John Krafcik was quoted as saying, "We haven't decided that as of yet. Genesis will be sold through our Hyundai dealers as a Hyundai, but we're still in the midst of discussions as to whether or not we should have an alternative distribution channel with a new name. It's still a possibility."
Like Toyota did with Lexus, Nissan with Infiniti and Honda with Acura, a premium marque from Hyundai would give the Korean carmaker the prestige and justification for the higher prices that inevitably come with producing up-market products. While Japan remains on alert from nuclear weapons from North Korea, the real bomb seems to be coming in automotive form from South Korea.
[Source: Winding Road]
Reader Comments (Page 1 of 2)
Petey 8:05AM (4/02/2007)
A reasonable target is Infiniti or even Acura over 10-15 years.. but, they're at least 20 years behind Lexus in terms of product and branding. Toyota was in a better position than Hyundai when they started Lexus... anything is possible though.
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Maineiac 8:11AM (4/02/2007)
If I buy a rwd Hyundai in the Upper 30's, I'd better not have to deal with the idiots at the present Hyundai dealerships who know less about a Hyundai than I do. Hyundai has a dealer issue on this one that will need addressing.
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Michael Karesh 8:16AM (4/02/2007)
Petey #1:
Interesting that they're 20 years behind Lexus, since Lexus has only been around for 18 years.
That said, this move seems all but given if they're going to offer products like Genesis. It just won't do to have them in the same showroom as the Accent.
Less clear is what to do with Hyundai's version of the Genesis once the premium brand bows. Would this be the junior car within the new brand's line? I don't think it did Infiniti any favors to share so much product with Nissan.
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felipe 8:33AM (4/02/2007)
they should save the dough, and use only Kia and Hyundai, so far they have done a damn good job moving them both up the ladder, and should simply re-align the cars. I agree, its tough to sell a premium line car with the accent next to it. that type of econo box along with the van should be Kia's. Hyundai shold contiune the roll they are on towards a premium brand.......
As long as no one else gets hit in the face with a fire extingusher.
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JayP 8:51AM (4/02/2007)
Hyundai selling this as a Hyundai out of US dealers and US service...
I smell another Phaeton.
The best product cannot shake branding that says economy car.
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jeffinToronto 9:07AM (4/02/2007)
Petey: What did you mean exactly when you said "Toyota was in a better position..." Hyundai has come farther in shorter time than just about any car company I can think of. Everyone laughed at Toyota when they said they were going to introduce Lexus, especially Mercedes and BMW. I don't think they are laughing anymore, so Hyundai could conceivably take some market away from the Japanese premium brands too...
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Snix 9:31AM (4/02/2007)
I smell a price war, with the customers coming out on top. Just watch what happens when the Chinese get their products up to speed and start selling here. The Japanese and Koreans will start crying foul and sounding like the domestic manufacturers with all that tariff and surtax talk. Something like "We have plants here, so we should get a break, yada, yada..."
And the tables will have turned. Payback......it's a bitch.
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EnviroBob 10:02AM (4/02/2007)
#2
If you've encountered unknowledgeable Hyundai salesmen, you must have been in a poorly run store or encountered green peas on the floor.
Unless things have drastically changed their policy from when I managed a Hyundai store, all salespeople had to pass product knowledge tests, scored by Hyundai corporate, in order for the salespeople to receive their spiffs. They also had to have a CSI of 92%+ in order to qualify to receive any money. When there is up to several hundred dollars on the line per car, most salespeople are pretty good about knowing the product. In the CS Survey, product knowledge is one of the questions customers are asked about their salesperson, so a lackof knowledge would bite the salesman and the dealer, whose incentives are also tied to CSI, pretty bad.
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stefan 10:09AM (4/02/2007)
Why would you want an exspensive korean, i rather have lexus or infiniti.
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Bebee 10:11AM (4/02/2007)
Unlike many others, Hyundai move steadily up the ladder on every aspect. 10 years ago I thought of its cars as a cheap, ugly and unreliable transport for poor. 5 years ago, I thought that is it a decent car for the money, lacking on design, but making up for it in reliability. With the latest concepts I begin to think that is a nice looking car with great value.
At this point, I find that Hyundai improves everything, including design, while Japanese Honda and Toyota remain inoffensive at its best. Although, the Genesis concepts reminds me of the latest Camry, it looks more polished and upscale than even Lexuses, let alone ordinary Toyotas. If the trend continues, they will be far ahead of Toyota, Honda and Nissan in 5 years on design, and they are at the same level as Japs on quality right now.
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Tal 10:54AM (4/02/2007)
They have to start somewhere at some point in time if they want to compete in the "luxury" arena.
The Japanese did it and did it quite well.
The Koreans are advancing very rapidly. Whether too rapidly the market place will decide.
Perhaps a litte more time to establish and solidify a long term quality track record for the Hyundai name would be of help before establishing a Genesis line.
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Maineiac 11:49AM (4/02/2007)
#9
Unfortunately for Hyundai there are still people who can't handle Koreans entering and even dominating the world stage. LG and Samsung are making a killing and Hyundai and even Kia are now now entering stage right. Many are no longer enamored by the prestige of a Japanese label especially when the Koreans are doing it just as good or better for 90% of the cost.
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polar 12:15PM (4/02/2007)
I am on the Fence as to buying this or not... When the pricing structure comes out, I'll know for sure. I would hate to see them nickel and dime the options like Lexus and Infiniti do.
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Bob-omb 12:17PM (4/02/2007)
This Genesis car isn't just a luxury plate, though. It's a RWD V8 large car. Why wouldn't Hyundai be able to sell it? It's not gonna be a volume car or anything.
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PandaBear 12:35PM (4/02/2007)
[quote]Why would you want an exspensive korean, i rather have lexus or infiniti.[/quote]
Why would you want an expensive Japanese? You rather have an Italian or German.
(Got you, don't I?)
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Katz 1:12PM (4/02/2007)
#7,
I don't think chinese brands can dominate as far as brand name is important, not just brand name but where they are came from too.
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Zain 1:39PM (4/02/2007)
There is no chance that the Hyundai (or whatever brand name the marketing guys come up with) will have better handling characteristics than the Infiniti, or more luxurious than the Lexus or even more reliable than the Acura!
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Avinash machado 1:46PM (4/02/2007)
Perhaps Hyundai should buy Jaguar from Ford. This will give them a luxury brand that is well recognised .Also Ford could get some much needed cash by selling it.
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Stéphane Dumas 2:34PM (4/02/2007)
#18 there was once last summer some rumors then Hyundai wanted to buy Jaguar but it was quickly denied. http://www.autoblog.com/2006/08/19/hyundai-squashes-jaguar-takeover-rumors/
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Bill 2:50PM (4/02/2007)
All of the original Lexus vehicles were basically re-badged camerys and they looked like it. They were all front wheel drive and their design was uninspired and boring.
This vehicle is a completely new platform that is rear wheel drive and has a V8. The design is taken from other luxury vehicles but it looks nothing like a sonata. Or xg350
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