Hyundai to Launch Luxury Brand in 2010
01-02-10, 03:37 PM
#46
I believe so. If they do a luxury brand and the cars continue to improve (2nd gen Genesis, etc) Hyundai will dominate the 2/3 tier segment. I don't see people jumping from their BMW, Benz, Lexus to them but everyone else should be really scared.
If they launch with the same focus as Lexus.....scary thought.... (and the won continues to stay favorable).
If they launch with the same focus as Lexus.....scary thought.... (and the won continues to stay favorable).
Separating cars in showroom wont make much difference and most importantly, they already launched it without it.
Problem is you have to spend billions on building new dealer showrooms, marketing, etc, etc... and thats the only way you can build new luxury brand.
01-02-10, 03:50 PM
#47
maybe genesis will sell more with a new luxury badge? selling 1500 genesis is doable IMO especially with a better dealership experience with no hyundai badge. they are selling 1000 genesis with a hyundai badge.
but the bread and butter will be RX fighter. santa fe is already a fantastic ride, so just give it a genesis treatment and add 10k to it's price tag. now you have RX alternative for 4k cheaper.
hyundai should do it.
but the bread and butter will be RX fighter. santa fe is already a fantastic ride, so just give it a genesis treatment and add 10k to it's price tag. now you have RX alternative for 4k cheaper.
hyundai should do it.
lets see the quote from their page:
Presenting Veracruz, an IIHS Top Safety Pick7 and the luxury crossover utility vehicle that bested the far pricier Lexus RX 350 in a comparison by Motor Trend, leading them to conclude “It drives as well, rides with aplomb, and feels all of a piece.”
With room for seven, more total cargo space than the Mercedes GL450, and the National Highway Traffic Safety Administration’s highest five-star front- and side-impact crash ratings14, the Veracruz isn’t just a crossover, it’s a benchmark
With room for seven, more total cargo space than the Mercedes GL450, and the National Highway Traffic Safety Administration’s highest five-star front- and side-impact crash ratings14, the Veracruz isn’t just a crossover, it’s a benchmark
I think Hyundai is lucky that won is so low and they can discount their cars heavily and still make money on them.
01-02-10, 04:04 PM
#48
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I agree, the Veracruz hasn't cut it an RX alternative. Hyundai needs to do something different, maybe a spruced up Santa Fe would be the answer. Who knows? They have to convince the consumer.
They seem to be committed and persistent though
They seem to be committed and persistent though
01-02-10, 06:18 PM
#49
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01-02-10, 09:14 PM
#51
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I haven't been to a Hyundai dealership, but the question for me would be: even though everyone says the Genesis is 'impressive' etc, is it actually an impressive car? or is it impressive for a Hyundai.
01-02-10, 11:11 PM
#52
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I dont know about you but I would buy a Genesis before I bought an American car. They both sucked in the past. GM sucked worse though imo
01-03-10, 12:36 AM
#53
Lexus Fanatic
With a car like this to enter the new line up I would say they are in good shape
http://www.autoblog.com/2010/01/02/w...-split-off-lu/
http://www.autoblog.com/2010/01/02/w...-split-off-lu/
01-03-10, 12:54 AM
#54
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I agree, there are already issues with the Genesis not selling. And there are name issues, with "Genesis" plastered on a cheaper sports car. So what would they call the current Genesis sedan, the "Genesis Genesis?" Messed up.
I see Hyundai building themselves gradually, but I think it's too soon to be branching off into small niches.
I see Hyundai building themselves gradually, but I think it's too soon to be branching off into small niches.
01-03-10, 04:44 AM
#55
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I agree, there are already issues with the Genesis not selling. And there are name issues, with "Genesis" plastered on a cheaper sports car. So what would they call the current Genesis sedan, the "Genesis Genesis?" Messed up.
I see Hyundai building themselves gradually, but I think it's too soon to be branching off into small niches.
I see Hyundai building themselves gradually, but I think it's too soon to be branching off into small niches.
I actually think them splitting off existing Hyundai dealerships into their luxury brand division (ala Toyota/Scion) is a smart idea. I suggested they do this years ago. It makes the most economical sense and will save them tons vs. if they were to invest in an entirely separate dealership network. I think Hyundai realizes that they can't really compete with the big boys if their luxury cars are going to be sold under the Hyundai name. They're taking a risk with starting a new luxury brand, but at least they're minimizing the risk somewhat by using this strategy.
01-03-10, 05:04 AM
#56
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Pretty soon I'm sure they are gonna come out with SUVs called MX570 and BX350
Last edited by lex; 01-03-10 at 05:07 AM.
01-03-10, 04:27 PM
#57
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Vera Cruz is a Hyundai with a Hyundai badge. It's not a luxury SUV like RX. it's basically a highlander level.
a separate Genesis Branded SUV will do better than 500 a month because the badge matters IMO.
a separate Genesis Branded SUV will do better than 500 a month because the badge matters IMO.
01-04-10, 06:45 AM
#58
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Isn’t that article from March 08? A lot of things could have change since then.
In my opinion, I think it’s a mistake for Hyundai to introduce a luxury division in this economy. The sales number for the Genesis haven’t been exactly jumping off the charts. Hyundai should really delay the new luxury division and do it right. The worst thing they can do is go half ares and divide the existing Hyundai dealership into two. Some of these Hyundai dealers are in pretty bad shape and they really need to seperate any assocation the luxury brand have with Hyundai. They need to do it right like Lexus did 20 year ago, built all new dealership and start with 100% customer service satisfaction. That is how they will succeed, provide the same customer service as Lexus, but with cars that cost $10000 less.
In my opinion, I think it’s a mistake for Hyundai to introduce a luxury division in this economy. The sales number for the Genesis haven’t been exactly jumping off the charts. Hyundai should really delay the new luxury division and do it right. The worst thing they can do is go half ares and divide the existing Hyundai dealership into two. Some of these Hyundai dealers are in pretty bad shape and they really need to seperate any assocation the luxury brand have with Hyundai. They need to do it right like Lexus did 20 year ago, built all new dealership and start with 100% customer service satisfaction. That is how they will succeed, provide the same customer service as Lexus, but with cars that cost $10000 less.
01-09-10, 03:34 PM
#59
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Yeah, like the Japanese weren't the biggest perpetrators at one point.
It simply wasn't feasible to support a new brand and dealer network w/ one model (2 if you add the coupe which came out later).
Before Hyundai launches a separate lux brand, they need to have a higher volume entry level sedan (which they reportedly are working on presently).
The Genesis sedan is only about 20% off its sales expectations of 20k units annually (keep in mind the projections were made prior to the economic downturn).
The coupe, otoh...
Keep in mind that Toyota sells the $60K+ Land Cruiser next to the cheap Yaris.
Anyhow, this is just a temporary situation (Hyundai should have done this when they launched the Genesis sedan 11/2 years ago) since Hyundai has plans to launch a separate lux brand in about 5-6 years time.
As stated before, any new luxo division would need a volume seller (entry level sedan).
The Genesis sedan is already selling at a 1,500 monthly clip.
It's sales of the coupe that is the problem.
Hyundai has plans to launch a lux marque in about 5-6 years time to coincide w/ the launch of the next gen Genesis sedan, GenCoupe (which will go upmarket and include a V8 variant) and Equus.
Hyundai is also working on a smaller RWD sedan (to be built on a shortened Genesis platform) and they likely are also working on a crossover (also to be likely built on the Genesis platform).
Of course, things may change in 5-6 years time, but that's the current plan.
Before Hyundai launches a separate lux brand, they need to have a higher volume entry level sedan (which they reportedly are working on presently).
The coupe, otoh...
It seems sort of unclear how they are trying to position the brand but I guess their plan will look clearer in time. It looks like they are slowly inching towards a more apparent division between cars like the Sonata and those like the Genesis or Equus, but a section of the showroom a la Toyota/Scion is not sufficient for selling $40-$60K luxury cars.
Interesting...
Interesting...
Anyhow, this is just a temporary situation (Hyundai should have done this when they launched the Genesis sedan 11/2 years ago) since Hyundai has plans to launch a separate lux brand in about 5-6 years time.
Would be interesting if they ARE able to pull it off. Even starting off the luxo-division with only 2 models (Genesis and EQuus) may be be foundation of something big for them. I know it sounds kinda silly with starting a whole new line with only 2 models, but it can work. Look at the success that Lexus has enjoyed over its;lifetime. When they launched in 89, the only 2 models they had were the LS400 and ES250.
It's sales of the coupe that is the problem.
I doubt very highly they will call the brand "Genesis". If anything, the brand will probably be called "Equus" and the VS460 will be their flagship. I agree there are naming issues for the Genesis sedan. They can't exactly call it an "Equus Genesis" either, cuz that sounds weird as well. They will either have to rename the Genesis to an alpha numerical name or keep the Genesis within the Hyundai lineup as the brand's flagship and rebadge the Genesis under the Equus name. Either way, they have some decisions to make. They will also need a RWD entry level sedan slotted BELOW the Genesis sedan, but I'm sure Hyundai also knows this.
I actually think them splitting off existing Hyundai dealerships into their luxury brand division (ala Toyota/Scion) is a smart idea. I suggested they do this years ago. It makes the most economical sense and will save them tons vs. if they were to invest in an entirely separate dealership network. I think Hyundai realizes that they can't really compete with the big boys if their luxury cars are going to be sold under the Hyundai name. They're taking a risk with starting a new luxury brand, but at least they're minimizing the risk somewhat by using this strategy.
I actually think them splitting off existing Hyundai dealerships into their luxury brand division (ala Toyota/Scion) is a smart idea. I suggested they do this years ago. It makes the most economical sense and will save them tons vs. if they were to invest in an entirely separate dealership network. I think Hyundai realizes that they can't really compete with the big boys if their luxury cars are going to be sold under the Hyundai name. They're taking a risk with starting a new luxury brand, but at least they're minimizing the risk somewhat by using this strategy.
Isn’t that article from March 08? A lot of things could have change since then.
In my opinion, I think it’s a mistake for Hyundai to introduce a luxury division in this economy. The sales number for the Genesis haven’t been exactly jumping off the charts. Hyundai should really delay the new luxury division and do it right. The worst thing they can do is go half ares and divide the existing Hyundai dealership into two. Some of these Hyundai dealers are in pretty bad shape and they really need to seperate any assocation the luxury brand have with Hyundai. They need to do it right like Lexus did 20 year ago, built all new dealership and start with 100% customer service satisfaction. That is how they will succeed, provide the same customer service as Lexus, but with cars that cost $10000 less.
In my opinion, I think it’s a mistake for Hyundai to introduce a luxury division in this economy. The sales number for the Genesis haven’t been exactly jumping off the charts. Hyundai should really delay the new luxury division and do it right. The worst thing they can do is go half ares and divide the existing Hyundai dealership into two. Some of these Hyundai dealers are in pretty bad shape and they really need to seperate any assocation the luxury brand have with Hyundai. They need to do it right like Lexus did 20 year ago, built all new dealership and start with 100% customer service satisfaction. That is how they will succeed, provide the same customer service as Lexus, but with cars that cost $10000 less.
Hyundai is also working on a smaller RWD sedan (to be built on a shortened Genesis platform) and they likely are also working on a crossover (also to be likely built on the Genesis platform).
Of course, things may change in 5-6 years time, but that's the current plan.
01-09-10, 05:44 PM
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However it took them many more years to do that unlike Hyundai, they have moved up the scale faster and in a shorter amount of time.
Hyundais were crappy as early 2000's in less than a decade the have come a VERY long way. What other manufacurer can do that?