madoka

Given some of the recent discussion, I found this article to be a good read and agree with the writer. Here is a relevant excerpt and a link to the full article:

http://autoperspectives.com/blog/201...d-class-model/

Already critics are saying Hyundai cannot compete with the Tier 1 luxury marques; Mercedes-Benz, Lexus, BMW and arguably Audi. Hyundai announced that they would not open a separate luxury franchise; instead they will sell the Equus in their existing showrooms. This announcement was met with cynicism. Traditional thinking says that a Tier 1 luxury brand needs its own stand-alone franchise/stores, and that luxury customers, particularly in the D-segment, want to be coddled in Taj Mahals built as shrines to their brand of choice. Luxury customers certainly don’t want to be shopping for or servicing their cars in the same place as mass-market customers…e.g. a Hyundai dealership.

This conventional thinking assumes that the only way Hyundai can succeed in the luxury segment is to follow the Lexus model and become a Tier 1 luxury brand. I think Equus will be a success and will re-write the rules of D-Class luxury. Hyundai won’t be a Tier 1 luxury brand; they will be a new form of luxury.

Americans’ perception of luxury and prestige is changing. Some argue that the near collapse of the financial markets and the recession have changed our sensibilities forever. Last year, the Wall Street Journal reporter Matthew Dolan was interviewed and commented that Americans have moved from “conspicuous to careful consumption.” He went on to say that “the luxury of the past is not the luxury of the future.”

Hyundai will certainly take advantage of these changing sensibilities but that’s not the only reason they will succeed. There has always been a segment of the car buying population that wanted the engineering and quality of the luxury segment but wasn’t interested in the “prestige” image. These folks didn’t want to overtly make a statement; they were looking for something subtler, something that made sense to them. The traditional trappings of Tier 1 do not drive them, they are looking for a quality product and a reasonable value. For years they bought Audis and thought that they had a made a “smarter” choice than their peers who bought Mercedes-Benz, BMW or Lexus.

Changing perceptions of luxury and an ample number of people interested in a quality luxury automobile but not in the “badge” marques will offer more than enough opportunity for the Equus. This combined with Hyundai’s increasing reputation for quality, some decent marketing and reasonable pricing should be more than enough to gin up floor traffic for the Equus.

But that’s where the battle will begin for Hyundai and the Equus, it will either succeed or fail based on what the customer experiences as they walk into the showroom.

These consumers are not the traditional Tier 1 D-segment customers and they won’t worry that they are going to a Hyundai store to look at a $55,000 luxury car. I think they’ll get beyond that fact that their luxury car is in the same showroom with a model that starts at less than $10,000. I don’t think they’ll mind sitting in a less sumptuous lounge while they’re waiting for service and probably won’t care if espresso isn’t available.

PhilipMSPT

iTrader: (5)

They keep comparing themselves to Tier 1 brands, and they haven't been able to sway the masses with their sales.

I can understand creating a new form of luxury, but Hyundai's idea of luxury (which should include exclusivity, technology, performance, service, or value; most of which they do NOT excel in) is lack-luster at best.

Making a smooth, quiet, leather/wood-clad car does not make a luxury brand. It takes more than that...

IS-SV

The car can succeed and generate some volume, without really bothering Lexus, Mercedes and BMW much.

AlexusAnja

The Genesis model is understandable... because it's not that far a cry from a fully loaded Camry or Accord, and still a couple thousand dollars less than a comparable Lexus or Infiniti. The Equus on the other hand is a far cry from the vanilla sedan families budget, and far too close to upper range of the Tier-1 luxury makers that it's customer base will be very few and what will it "redefine?" The Rebel-Luxury buyer that doesn't want the mainstream luxury, but would pay the same money and get service at the same dealer that a Sonata and Elantra get serviced at?

I read someone saying how the dealers in Korea are much better... okay, that is in Korea. Hyundai in Korea (home country) could sell a glass of lemonade for $30 and the home crowd would buy it up and say it's the best. This vehicle is going to be sold here and I don't think it's being sold to be a "halo" vehicle with any success.

I8ABMR

If Lexus was considered a Tier 1 brand when it came out then Hyundai should be able to pull the same thing off assuming they would have started a separate branch. I dont know if the current plans are going to work as well as they think

oohpapi44

iTrader: (1)

They've already set themselves up with their positioning so that it can't really fail by definition. By 're-defining' what Tier 1 is, what do they have to live up to? The new 'Tier 1' they create will be whatever crap the sales numbers add up to and those 17 people that buy it (LOL) will be the new elite luxury buying class.

So it really boils down to how they market it. People are so lazy these days that if you tell them they don't have to work as hard to afford a genuine Tier 1 experience and can go to a crappy dealership, get crappy service but a get a 'luxury' car, they might just bite.

Hyundai's new slogan: "If you can't fit the definition; change it!"

Och

iTrader: (3)

If Hyundai really wants the Equis to succeed, here's a simple way to do it... Offer $299 a month lease rates

I8ABMR

I would be all over it for $299/month

Och

iTrader: (3)

Id get two if they discount an extra $50

LexFather

The sales goal is MAYBE 200 or so a year. That is what the LS/7/S sells in a month sometimes time 4....sorry but no one CARES...Phaeton, Q45, Equuas.. all yaaaaaaaaaaaawn...solid cars no one will care about.

mikemareen

don't mean to bump an old thread but this was the only hyundai thread that wasn't closed!

the equus does look nice but I don't know how they plan on executing when half their dealers are ghetto fabulous.

just like samsung and lg is now considered on the same level as sony and the like, hyundai will also be in that status range.

but yeah give me a full size v8 that does 30mpg average at a cost of 50k and I'm all over it, as long as they warranty the thing for 100k miles then it's all good! cuz if anything goes wrong it's not my problem!

I8ABMR

I respect the Hyundai Genesis but I feel very strongly that the decision to maintain the brand under the Hyundai name as opposed to splitting into a luxury brand as well as the base Hyundai brand is a fatal mistake. In this segment image goes a long way. Sitting next to a 17 year old and his stoner girlfriend as they provide the waiting area with teen PDA is not what I want when I spend 50-60k on a car

mmarshall

Let's see how well the Equus does. I'll reserve judgement on the car until I see one in person, but, as I see it, the prospect of a traditional luxury-car costing 50-55K that can compete with the Lexus LS460 may attract a fair number of buyers.

In fact, THAT is what made the original Lexus LS400 itself such a success when IT was first released 20 years ago. It was able to successfully compete with the Mercedes S-Class at a lower price....and (ultimately, a few years later), better quality.

I8ABMR

I keep saying the same thing but ............... .
The Genesis reminds me of a modern day LS400. High quality, has all of the stats to match the competition, BUT everyone thinks its a joke. How quickly some forget the comments of the owners of the premier luxury cars were saying when they Lexus was released. It sounds just like the comments we keep hearing here about the Genesis. If there is anything Lexus has taught us is that Americans want value, reliability, and performance.........not simply the heritage and image that the other brands provided for so many years.

ecr527

I could totally see Hyundai sell it's cars without having to start a luxury division, but at the same time, when you dish out $50K of your hard earned money for a car, one would like to get the whole experience. Owning a Lexus, I gotta admit that when I bring my car in for service, it's kinda nice to have the coffees, cappucinos, etc. I went into a Hyundai dealership with a friend of mine to buy a car and they didn't even offer us a soda or water or anything!!! If you're dishing out $15-20K and can't even get a soda on them, what do you think you'll get when you come in for service? I know this may seem petty, but it's the little things like this that brings people (and keep them coming back) in.