REPORT: Hyundai CEO Krafcik sees Genesis as a Lexus-like sub-brand
Hyundai Equus: Click above for photo gallery
Hyundai may have started off as a value brand devoid of high end transportation, but over the past few years, efforts such as the Azera and Veracruz have demonstrated that Hyundai can elevate its game. This became abundantly evident with the introduction of the the new Genesis sub-brand, which shows that Hyundai can do full-blown luxury. Hyundai USA CEO John Krafcik feels that Genesis could eventually be a model lineup all its own, much like Toyoda's Lexus brand. Krafcik told Wards Automotive that Hyundai didn't want to ask its dealers to spend $5 to 10 million on new showrooms to peddle a whole new brand. Instead, the decision was made to sell the Genesis at existing Hyundai dealerships, just separated from the rest of the lineup.
The Genesis lineup is in its fledgling state at this point, but it holds promise. The Hyundai Genesis sedan has its sights trained on luxury competitors like the Lexus GS, while the Genesis Coupe obviously places a premium on sport over luxury. Hyundai's high-end, home-market Equus sedan, displayed for the American audience in New York over the last week, looks ready to compete with the LS460 in terms of size and amenities, while costing thousands of dollars less. Hyundai's Equus flagship sedan could arrive Stateside within 2-3 years.
Beyond Genesis, Hyundai has plans for turbocharging and direct injection in its vehicles beginning next year with the all-new Sonata. The goal is increased sales in the lucrative US market, but given the current economic state of affairs, volume projections take a back seat to sustaining the sales Hyundai has already achieved.
Gallery: New York: Hyundai Equus
[Source: Wards Automotive]
Reader Comments (Page 1 of 4)
chineyz954 2:45PM (4/18/2009)
Not 100% sold on this idea working, but it is a sound business decision. Genesis should be its own brand if they can kill kia. All they need is Hyundai/Genesis.
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Auari 2:51PM (4/18/2009)
Disagree, Hyundai is going to be like Ford.
Ford, Lincoln, mercury
Kia, Hyundai, Genesis
Go for it Hyundai!
chineyz954 3:21PM (4/18/2009)
I think Ford should drop Mercury too. Hyundai and Kia have overlapping products if they keep all three brands i think they will have to position kia like a scion for teens.
Taglane 3:59PM (4/18/2009)
"i think they will have to position kia like a scion for teens."
With the intro of the soul, I think that just might happen.
homunculus 4:14PM (4/18/2009)
From the Geneses I've seen, a lot of people are already opting for the alternative Genesis badge anyway.
They need to refine that Equus before it's a competitor though.
PJ 8:31PM (4/18/2009)
First model:
The Genesis Torpedo.
jsjs 1:16AM (4/19/2009)
No - Hyundai is going after Toyota while Kia (the sportier brand) is going after Nissan.
Plus, Kia, w/ Peter Schreyer at the helm of the designs, has more of a Euro-style design which is quite different from Hyundai.
Jake B 6:00AM (4/19/2009)
Yeah Kia sure is doing a good job going after Nissan. Oh wait... not really.
jsjs 3:48PM (4/19/2009)
JB - give Kia some time.
The Kia Koup and the VG appear to be a good start against the Altima Coupe and the Maxima, and in Europe, the Kia Cee'd already outdoes any hatch offered by Nissan.
Sal Collaziano 11:05AM (4/20/2009)
Yeah, Kia can stick around to take on Scion.. Why not? Plus, the new Amanti is going to be very, very nice.. So anyone looking for a very economical luxury car - Kia is the way to go. Hyundai takes on Toyota and the new Azera will easily steal current Avalon customers.. The Genesis line takes on the likes of Lexus, Cadillac and Lincoln.. They can forget competing with BMW and Mercedes on any serious level. At least until they build up their reputation. Still, I think Hyundai taking on Cadillac, Lincoln and Lexus with their Genesis brand is very impressive as it is...
Sal Collaziano
http://www.genesisowners.com
2004m3driver 2:54PM (4/18/2009)
Why not. Samsung is giving even Sony a run for its money so it wouldn't be a surprise if the Koreans compete with Lexus and Infiniti. Their biggest hurdle is creating brand prestige. My suggestion is make some ridiculous halo car and then work from there. (not a new strategy though huh?) I just want to see more ridiculous halo cars though actually. IE: LF:A , GTR
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wolverinejoe80 5:44PM (4/18/2009)
actually sony has nothing on Samsung except ps3 and computers. Samsung is way ahead of Sony in terms of new technology and global sales. and Samsung computers are headed here. a checkmate.
Jon 10:31AM (4/19/2009)
you guys saw the spied "samsung" car?
Mason Hill 11:29AM (4/19/2009)
They should do this. Let's face it, Hyundai is an odd name that doesn't exactly conjure up thoughts of prestige. Genesis will be something new to start with. Acura, Infiniti and Lexus were all new brands that have developed into prestige brands.
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reddy 3:09PM (4/18/2009)
I see the hyundai management confused.. instead of raking money for now by comparing with cars like lexus.. they need to improve hyundai's brand name more before moving on in the game.
Hyundai should be respected for its reliability along with their value for money first than what most people see them as a cheaper option. Only then a luxury brand of hyundai would be respected.
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reddy 3:13PM (4/18/2009)
also they should accept that genesis is not a great car to be a brand in itself and should be seen as what maxima is to nissan.. they should use genesis to brand hyundai better than trying to compete with lexus and bmw..
maybe after 2 yrs they could bring Equus as part of their luxury brand
jsjs 1:22AM (4/19/2009)
Uhh, that's exactly the reason why they opted to forgo offering the Genesis sedan (and coupe) under a new lux nameplate (along w/ the expense of starting a new nameplate and supporting a new dealer network w/ only 2 models) and kept it within the Hyundai brand (they figured that the Genesis would serve as the "halo" model for Hyundai and improve the image of the brand).
As for reliability, Hyundai is already better than many other Japanese brands and is closing in on Toyota and Honda.
mole 6:58AM (4/19/2009)
i agree. Hyundai don't make all terrible cars. But the only good cars they have are - Tuscani, Getz, and i30. Reliability is still an issue with Hyundai. I have heard cabbies complaining about their Hyundais breaking down just less than a year after they were introduced. Toyota built on their reliability with a cheaper price before trying to compete with the bigger names before them. And Lexus is certainly not a bling bling item. Also note that Lexus didn't just have the reliability of Japanese cars, it has that comfort unrivaled in the industry for a long time.
the_MVP_X 3:21PM (4/18/2009)
Hmm, a Lincoln, a Lexus or Genesis? I'm taking the Lexus,, or even the Lincoln. Sorry Hyundai, nothing personal.
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wolverinejoe80 5:45PM (4/18/2009)
i'll take genesis over lincoln anytime anyday.