Hyundai to spend $80m on Genesis sedan launch, pre-sales top 700 so far
Hyundai has big plans for its luxury Genesis sedan, and the Korean automaker is willing to pony up $80m to get the word out. Rich appointments, rear-wheel-drive, a choice of powerful engines, and a starting price of $30k is a good story to sell customers on, and the Genesis sedan is being looked at as the halo car in Hyundai's lineup. That helps justify spending the most launch money on any Hyundai ever, even though only 30,000 Genesis sedans are scheduled to be sold per year. Genesis marketing begins with a 15-city tour involving about 100 sedans, and will include television ads plus the Internet and plenty of viral events.
We're very anxious to see if Hyundai can deliver a legitimate Lexus GS competitor for over $10,000 less, and if the Genesis is as good as advertised, the $80m will be money well spent. Hit the jump to see the Hyundai Genesis sedan Super Bowl commercials.
[Source: Auto News (subs req'd)]
Reader Comments (Page 1 of 2)
Stuka 3:42PM (5/26/2008)
I think this car really shows how far Hyundai has come over the years. I am looking forward to seeing on in person to see if it feels like a 40k dollar car with a 10k dollar discount.
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Nimeye 3:44PM (5/26/2008)
Am I the only one that laughed when I saw 700 pre-sales? I know it's supposed to show the anticipation for the car, but it seems to be a negligible amount compared to the amount they'll be spending to promote it.
Anyways, kudos to Hyundai- they've really stepped up to the plate with some of their products.
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Seminole 5:04PM (5/26/2008)
I think the fact anyone is pre-buying a Hyundai speaks volumes about this car.
tekdemon 3:26AM (5/27/2008)
You're not the only one. 700 would only be impressive if this was a super-limited edition car that only had a production run of 1000 or something.
Although, I suppose Seminole has a point there, I doubt Hyundai usually gets any presales at all.
But then again who knows, the pre-sales might be to Hyundai dealership owners or employees who want the new flagship to show off or something.
Red 3:49PM (5/26/2008)
Motor Trend has a first drive. Sounds like they were aiming at Mercedes and landed somewhere between Chrysler's 300C and the current Acura lineup (cough cough). Great for Hyundai, but not so much for at least Acura. Vehicle dynamics doesn't quite seen up to par, and neither are the details. Not surprising. Corner cutting at its finest:
http://www.motortrend.com/roadtests/sedans/112_0808_2009_hyundai_genesis/details.html
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jsjs 5:24PM (5/26/2008)
As for vehicle dynamics - that remains to be seen (The Korean version has a much softer ride than the one planned for the US market).
Cost-cutting? Since when is a car having a Lexicon audio system cost-cutting?
PJ 11:16PM (5/26/2008)
Looking at the article, MT's dynamic complaints seem rooted in the same expectation that's often echoed on this board: that RWD, in and of itself, should somehow transform a two-ton, ride-biased passenger car into a sports sedan.
Anyway, it doesn't matter how the Genesis compares to a Mercedes--it's priced against the Avalon, Lucerne, ES 350, Chrysler 300, Acura TL, and other large/entry-luxury sedans. Against them, it should make a pretty good argument for itself.
Red 1:03AM (5/27/2008)
A high-end audio system = no cost cutting when trying to meet a price roughly $10K cheaper than your competitor?
Uh....okay.
Red 11:24AM (5/27/2008)
I stand corrected
http://www.edmunds.com/insideline/do/Drives/FullTests/articleId=126514?tid=edmunds.il.home.photopanel..2.*
Dan 3:55PM (5/26/2008)
It's Hyundai's bad luck to finish this vehicle just in time for the last economic boom to end and the current dip to start.
No matter how good this car is - and with their their track record lately I'd be shocked if it isn't within spitting distance of a real Lexus - this isn't a good time to be selling the established players let alone trying to break in.
Despite that I think the big money launch is a good thing. They didn't do that for the Azera and that's one of the best cars nobody ever heard of there's ever been.
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iCameiSawiConquered 4:01PM (5/26/2008)
I don't care how nice or awesome the car is, the ultimate problem for Hyundai is their badge. People think of their cars as cheapmobiles, and that's fine...that's how they got in the business but you cannot convince people to spend $35K on a Hyundai when people are accustomed to paying $15K. This was the problem with the Phaeton--who wants to pay a BMW price for a Volkswagen? Not many people did...and Hyundai has an even more cheapo reputation than Volkswagen.
Going upmarket takes much more than a single car...it takes decades to change people's perceptions. Unless Hyundai has some kind of Lexus/Acura/Infiniti brand in the making, Hyundai-badged cars in this price range will simply fail.
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Red 4:15PM (5/26/2008)
The problem isn't asking people to go from a $15K Hyundai to $35K Hyundai. The problem is asking them to go from a $50-70K Mercedes/BMW/Lexus and asking them to pay for a Hyundai....period. Doesn't matter how much it costs. I agree with you about it being their name/badge, but unfortunately for them, they're shooting blanks trying to get people to understand value in that segment. The Genesis is more car than most people will ever need and that's Hyundai's main problem. Need. People in the luxury segment buy expensive cars because they WANT them. Not because they NEED them. It's not like this is a specific market. All of that works in Korea, but if people buy European because they want European, they're far less likely to even care how good the Genesis is because it's not from the lands of italian horsey's, bright orange bulls, world-class interiors, das auto's and reclining rear seats (little known fact: the JDM 1991 Acura Legend had reclining rear seats...Maybach who?). Sucks to say, but it is more than likely a conscious decision on many-a-snooty, uppity shopper's mind.
Not trying to sound like a hater, but this was an uphill battle from the start. Maybe they'll pull it off, maybe they won't, but from the sounds of it, I'm not entirely optimistic.
Mike Lee 4:18PM (5/26/2008)
I don't think they'll "fail" as you put it, but that they will do okay. I agree with preceived image however. Decades ago BMW was a small, cheap car line. Of course they changed market position, but it took a long time before their cars earned their current reputation. Hyundai can pull this off based on the better-than-previous cars they're building now. The Genesis will help establish a more upscale image for them, but people will have to take a chance on their products and buy them (now that they're selling in higher price ranges) before their reputation for building quality cars will spread.
joe97 5:01PM (5/26/2008)
Well, to be fair, Hyundai isn't asking consumers to jump the way VW asked people to jump from Passat to Phaeton (i.e. price gap). The Azera to Genesis is a logical move, in a lot of ways. Mark my words, the Genesis will not fail as Phaeton did, as RL did, and a few other premium vehicles...
Obviously Hyundai is putting a lot of chips on the Genesis, so for their sakes I hope they'd have the success they deserve. They deserve this b/c the car is evident of how far Hyundai has come along, just like the rest of Hyundai's US lineup - quality, features, competitive, etc...
Are we seeing history repeat? You'd bet. The Japanese giants were first, now the Koreans, the only difference, Hyundai/Kia are reversing the trend in much faster pace.
homunculus 6:11PM (5/26/2008)
I think they'll find that buyers in China will be much more open-minded.
Shiftright 5:11PM (5/26/2008)
THIS CAR IS SO DAMN BLAND!!! I don't think it's impossible for people to drastically change their perceptions about a brand, but it doesn't happen overnight, and th \e biggest problem with this car is that IT'S BORING, BORING, BORING!!!!. Oh, did I mention that it's dull? In that respect they've copied the first Lexi well. As an addenddum to Red's little known Acura fact, Alfa Romeo 164s sold in the US in 1991 had a power reclining rear set as an option as well, so nope, the Phaeton wasn't introducing anything new
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TheRaven 5:57PM (5/26/2008)
I don't think your characterization of how the design of the Genesis Sedan clashes with the intended audience is correct at all.
I think many people in the luxury segment don't want a striking design. In fact, I think many in the segment want a simple upmarket look that is elegant. The Genesis Sedan isn't a striking design, but to me at least, it does have a simple and elegant shape. That shouldn't come as a big surprise since it reproduces a lot of design elements from brands like BMW, and that isn't necessarily a bad thing.
There is going to be a hurdle for a lot of people to overcome in buying a luxury Hyundai. The people that buy a BMW or Mercedes sedan strictly as a status symbol won't be interested. However, I think there are a lot of professionals that could end up taking a look at one based on the price and being surprised at how much more car they could get for their money in a Genesis Sedan than the competition at its price.
jsjs 5:58PM (5/26/2008)
Maybe you should post something intelligent for once.
Let's talk about "BLAND" - shall we?
There was probably no BLANDER auto than the original LS, and heck, even the current one is still pretty bland (even MB nowadays, which Lexus completely aped has been coming out w/ some rather bland designs).
Acura? - nuff said.
And even Infiniti - back in the day had some pretty bland designs - the Q45, J30 and I30 (some people seem to have awfully short memories, or should I say, selective memories?)
While derivative styling, the Genesis is a better looking vehicle than those early designs and better looking than the new LS or any current Acura.
bruno 6:42PM (5/26/2008)
Don't worry. You can add pimped-out wheels and a rear wing like on your Mitsubishi or Mustang.
This is an adult car.
Shiftright 9:11PM (5/26/2008)
So 'adult' cars have to be characterless and bland? I understand there is a huge market for efficient well engineered quality transportation appliances as the Camry and a host of other truly forgettable Japanese and Korean cars prove, but to make such a big stink about it, it should have at least some distinguishable design cues. It looks like one of the generic cars illustrated on aftermarket automotive accessories packaging. There is a difference between subtle and unassuming, and invisible through dullness. The designers, if they were involved at all) phoned it in on this one. But hey, that's why there's so much choice on the market. Everyone has different tastes and needs and if this car is all you, then your automotive fantasies have come true. I'm just tired of seeing 'new' designs that are watered down versions of designs that were bland 15 years ago. This is a 2010 car? Really?