How the Hyundai Equus can succeed
07-10-10, 04:57 AM
#31
as nice as their new model line up are becoming, I think hyundai is making a huge mistake by not branching off a luxury brand such as the "Genesis".
they could have just made their nicest and biggest dealerships as suppliers for both "genesis" and hyundai..... and leave the remaining little ghetto dealerships for hyundai itself. A marketing team and a few dealerships with upgraded luxury amenities, how much could that have costed them ?
lots of buyers are "brand" chasers and will only buy if it's perceived as a high end brand and that's where hyundai will lose out on when it's all said and done.
they could have just made their nicest and biggest dealerships as suppliers for both "genesis" and hyundai..... and leave the remaining little ghetto dealerships for hyundai itself. A marketing team and a few dealerships with upgraded luxury amenities, how much could that have costed them ?
lots of buyers are "brand" chasers and will only buy if it's perceived as a high end brand and that's where hyundai will lose out on when it's all said and done.
07-10-10, 10:36 AM
#32
Lexus Fanatic
as nice as their new model line up are becoming, I think hyundai is making a huge mistake by not branching off a luxury brand such as the "Genesis".
they could have just made their nicest and biggest dealerships as suppliers for both "genesis" and hyundai..... and leave the remaining little ghetto dealerships for hyundai itself. A marketing team and a few dealerships with upgraded luxury amenities, how much could that have costed them ?
lots of buyers are "brand" chasers and will only buy if it's perceived as a high end brand and that's where hyundai will lose out on when it's all said and done.
they could have just made their nicest and biggest dealerships as suppliers for both "genesis" and hyundai..... and leave the remaining little ghetto dealerships for hyundai itself. A marketing team and a few dealerships with upgraded luxury amenities, how much could that have costed them ?
lots of buyers are "brand" chasers and will only buy if it's perceived as a high end brand and that's where hyundai will lose out on when it's all said and done.
07-10-10, 10:47 AM
#33
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A separate luxury arm does not equate to automatic success. Acura was first but barely is recognized as luxury (Hyundai has debuted with much more credible and real luxury cars then they did). Infiniti struggles to this day. Volvo was sold. Saab is nonexistent. Lincoln is struggling. etc etc
Quite frankly in this day where many people are going away from "bling" and trends are people are going away from designer labels etc I think Hyundai might be doing the right thing just keeping them at Hyundais and its great they have names and not some silly letter/number combo.
Setting up a luxury arm would mean billions spent with maybe minimal increase in sales. I think they are doing the right thing.
Quite frankly in this day where many people are going away from "bling" and trends are people are going away from designer labels etc I think Hyundai might be doing the right thing just keeping them at Hyundais and its great they have names and not some silly letter/number combo.
Setting up a luxury arm would mean billions spent with maybe minimal increase in sales. I think they are doing the right thing.
07-10-10, 11:34 AM
#34
Lexus Fanatic
but wouldnt you agree that there are still buyers out there in these luxury segments that may still want that level of luxury and refinement, but a better price?? I see your point but for me I would still prefer my luxury brand to be separate from the standard cars
07-10-10, 11:51 AM
#35
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actually it wouldn't have costed that much, a marketing team, a few upgraded flagship dealerships and the cost of rebadging some of the vehicles.
this is the USA we are talking about, as much as people start to stray away from labels there will be more who stray towards the label.
if this was my company I would have gave it seperate branding without a doubt. In fact, an additional luxury branding along with new steller models would have been exactly what they needed to take maximum advantage of their situation right now.
this is the USA we are talking about, as much as people start to stray away from labels there will be more who stray towards the label.
if this was my company I would have gave it seperate branding without a doubt. In fact, an additional luxury branding along with new steller models would have been exactly what they needed to take maximum advantage of their situation right now.
A separate luxury arm does not equate to automatic success. Acura was first but barely is recognized as luxury (Hyundai has debuted with much more credible and real luxury cars then they did). Infiniti struggles to this day. Volvo was sold. Saab is nonexistent. Lincoln is struggling. etc etc
Quite frankly in this day where many people are going away from "bling" and trends are people are going away from designer labels etc I think Hyundai might be doing the right thing just keeping them at Hyundais and its great they have names and not some silly letter/number combo.
Setting up a luxury arm would mean billions spent with maybe minimal increase in sales. I think they are doing the right thing.
Quite frankly in this day where many people are going away from "bling" and trends are people are going away from designer labels etc I think Hyundai might be doing the right thing just keeping them at Hyundais and its great they have names and not some silly letter/number combo.
Setting up a luxury arm would mean billions spent with maybe minimal increase in sales. I think they are doing the right thing.
07-10-10, 11:56 AM
#36
Lexus Champion
I think the hardest thing they will have to overcome is the stigma people will have paying $50K for Hyundai. I know a bunch of people that would drive any of their new cars all day if it had an H ot T on the grill, but just because it says Hyundai on it they don't want anything to do with it. 
I actually saw an Equus cruising around in the Fort Lauderdale area with manufacturer tags on it a couple of months ago. It's a pretty impressive car in person.
I actually saw an Equus cruising around in the Fort Lauderdale area with manufacturer tags on it a couple of months ago. It's a pretty impressive car in person.
07-10-10, 12:14 PM
#37
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In the end, given the low sales, and the economic armageddon that occurred when the Genesis launched, Hyundai made the right decision AT THAT TIME to not start a luxury brand. They are still mulling over how they are going to do it in the future though.
07-10-10, 12:32 PM
#38
What pokes me with Hyundai is their ad campaign to try and convince drivers their product -is- comparable to Lexus, BMW and MB. With the line-up growing the dealer lots are going o be pretty full. I don't know if Hyundai would benefit form opening a luxo division...yet even more cars to option up in another buyer segment.
So far they hit a price point just below the big brands offerings. IMO, this is a compensation for buyers who want as much car for their $. For buyers of luxury cars, this may not be such an advantage since the criteria is a bit different.
The other is their naming. Toyota and mainstream median to entry level has names. Luxo barges and sporty cars seem t follow the Euro numbering scheme to denote engine displacement and level with letters. Buyers come to associate this segment by that. Equus?
So far they hit a price point just below the big brands offerings. IMO, this is a compensation for buyers who want as much car for their $. For buyers of luxury cars, this may not be such an advantage since the criteria is a bit different.
The other is their naming. Toyota and mainstream median to entry level has names. Luxo barges and sporty cars seem t follow the Euro numbering scheme to denote engine displacement and level with letters. Buyers come to associate this segment by that. Equus?
07-10-10, 01:53 PM
#39
Lexus Fanatic
I still think the only difference between Hyundai's Genesis and the Equus in comparison to MB,BMW, and Lexus only the name and reputation. In terms of features, safety, technology, and even performance the Hyundai is totally comparable and in some places even better than the competition. Only time will tell but they have been showing some really promising products and direction of growth.
07-10-10, 05:16 PM
#40
All this talk about how you get a different sales experience at Lexus. I'm on my 4th Lexus now and minus the free drinks, which my Honda dealers gives away too, they even give free Hagen-Daz bars at the Honda dealer, Lexus saleman play the same numbers games, switching of figures, every dealer trick in the book. As much as when I bought my Honda Fit and I bought my Toyota Prius. I even stoppe getting service at my Lexus dealer, besides the free pastries and drinks, $80 for an oil change that can be done for half the price anywhere else.
I will admit I never bought a MB or BMW so maybe those dealers will wipe your butt after you use the restroom during an oil change but to the 4 different Lexus dealers that I bought from before, minus the nicer building they were no more nicer, more accomdating, or played less tricks than the Honda or Toyota dealers.
Maybe I'm not the type of buyer Lexus goes after. All my Lexus cars for that matter every car except the Prius I bought, I paid invoice or below for the cars. I don't walk into the Lexus dealership and have so much money to spend, slap down my AMEX Centurion and tell them to have the car PDI'd and ready to go in 10 minutes.
I sat next to the stoner guy and his girlfriend at a Lexus dealer too. You think that guy doesn't drive a IS250.
I will admit I never bought a MB or BMW so maybe those dealers will wipe your butt after you use the restroom during an oil change but to the 4 different Lexus dealers that I bought from before, minus the nicer building they were no more nicer, more accomdating, or played less tricks than the Honda or Toyota dealers.
Maybe I'm not the type of buyer Lexus goes after. All my Lexus cars for that matter every car except the Prius I bought, I paid invoice or below for the cars. I don't walk into the Lexus dealership and have so much money to spend, slap down my AMEX Centurion and tell them to have the car PDI'd and ready to go in 10 minutes.
I sat next to the stoner guy and his girlfriend at a Lexus dealer too. You think that guy doesn't drive a IS250.
07-10-10, 07:25 PM
#41
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All this talk about how you get a different sales experience at Lexus. I'm on my 4th Lexus now and minus the free drinks, which my Honda dealers gives away too, they even give free Hagen-Daz bars at the Honda dealer, Lexus saleman play the same numbers games, switching of figures, every dealer trick in the book.
Whenever I get an oil change, I always bring my own oil for all my cars.
At the Nissan dealer, the waiting room has plenty of seats and vending machines. There are free Otis Spunkmeyer cookies (baked on site), newspapers, and water. They will drive me home and pick me up if I request. They will hand wash my car when they are done. Very often the techician will answer my questions directly. The cost of a service is $15 for my Maxima.
At the Lexus dealer (Longo), there are free pastries, water, soda, internet, and newspapers. No vending machines. They will drive me home and pick me up if I request. They won't give me a rental car since the service is fairly short. They have an automated car wash which scratches up my paint so I request that they never wash it. There is no interaction with the techs; only service advisors. The cost of a service is $200+ on my IS F.
http://i35.tinypic.com/m7t9fo.jpg
When I bought my IS F, I got an emailed quote from Longo. After I got there, the salesman who emailed me the quote wasn't there so I went to another one. He refused to honor the quote and implied that I made it up. Said that they would never, ever sell it for that price. I ended up writing to corporate since I was so ticked off. When I bought the LX570 not a single salesperson could explain the switches in the vehicle. Wouldn't even try and told me to read the manuals. I personally don't get why people think Lexus service/"the experience" is something special. AFAIK it's a glorifiied Toyota/Honda/Nissan-like experience.
Last edited by madoka; 07-10-10 at 07:28 PM. Reason: Found a copy of the receipt.
07-11-10, 02:34 AM
#42
haha... that got me laughing when you said the salesman couldn't answer what the buttons were. Every Lexus I bought, the salesmen never went through the car to explain all the features. They just try to get me out of there as fast as possible. Hence if you read the HS250 forum, I had to ask why my VSC came on when the brakes were pressed down hard. It was the hill assist. I have yet to experience anything "extra" and I'm on my 4th Lexus.
I do have a defense for the people that do get the extra treatment. I do look for the lowest price, so maybe I'm not worth their time. Selling me a car at invoice or below, while you pay close to MSRP could mean that they give you better service. Why not? I can understand that, they make the minimum commission off me while getting 2-3 times off your deal, of course they would be better to you.
I bought a previous Lexus as GS from Longo, I bought my current HS from Steven Creek since I moved to NorCal. Both dealerships are owned by Penske, they are high volume dealers, I think Longo is like the #1 dealer on the West Coast and Stevens Creek is like #2, the sell a lot of cars, so I go to them, they may give me Toyota service for my Lexus car buying experience but they also give me Toyota prices for my Lexus because in all honesty. I rather save a couple of bucks than get some special treatment from a salesman.
And this is where the Equus might succeed people like me that just want the best deal and couldn't give a rat's butt about where I buy the car. Hey even Longo is right next door to the Toyota dealership, so it's not like you're going to somewhere exclusive.
I would think though that at the least the Hyundai dealership would probably treat you a little better than the guy who's bought an Accent for 10K. As any business owner can testify, the guy who bought the 60K car gets more attention because he can be a repeat customer for another 60K car in the future.
I do have a defense for the people that do get the extra treatment. I do look for the lowest price, so maybe I'm not worth their time. Selling me a car at invoice or below, while you pay close to MSRP could mean that they give you better service. Why not? I can understand that, they make the minimum commission off me while getting 2-3 times off your deal, of course they would be better to you.
I bought a previous Lexus as GS from Longo, I bought my current HS from Steven Creek since I moved to NorCal. Both dealerships are owned by Penske, they are high volume dealers, I think Longo is like the #1 dealer on the West Coast and Stevens Creek is like #2, the sell a lot of cars, so I go to them, they may give me Toyota service for my Lexus car buying experience but they also give me Toyota prices for my Lexus because in all honesty. I rather save a couple of bucks than get some special treatment from a salesman.
And this is where the Equus might succeed people like me that just want the best deal and couldn't give a rat's butt about where I buy the car. Hey even Longo is right next door to the Toyota dealership, so it's not like you're going to somewhere exclusive.
I would think though that at the least the Hyundai dealership would probably treat you a little better than the guy who's bought an Accent for 10K. As any business owner can testify, the guy who bought the 60K car gets more attention because he can be a repeat customer for another 60K car in the future.
07-11-10, 12:03 PM
#43
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lexus salespeople i've dealt with were either incompetent, or incompetent and very nice. 
07-11-10, 04:33 PM
#45
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Of course there are some bad experiences and salespeople. Clearly it is the minority as Lexus continues to set the standard for dealer service and customer satisfaction.
One of the reasons why Lexus is where they are and why Acura/inifniti suffer is b/c of the research done in the 1980s. Lexus studied the rich for years and clearly learned a lot and applied it. Again just having a luxury dealership and brand does not equate to success.
The world isn't exactly falling over themselves for these cars. They are nice additions to a field of already nice vehicles. Their main selling point IS PRICE.
I think Hyundai has done the right thing for now and they can be like a Korean version of VW. Econo cars and some luxury cars under the same badge. That appeals to some people.
One of the reasons why Lexus is where they are and why Acura/inifniti suffer is b/c of the research done in the 1980s. Lexus studied the rich for years and clearly learned a lot and applied it. Again just having a luxury dealership and brand does not equate to success.
The world isn't exactly falling over themselves for these cars. They are nice additions to a field of already nice vehicles. Their main selling point IS PRICE.
I think Hyundai has done the right thing for now and they can be like a Korean version of VW. Econo cars and some luxury cars under the same badge. That appeals to some people.