May9
Hyundai is already planning to launch a luxury brand in China by 2010, and it looks as though the U.S. might not be far behind, a new report finds. The Korean automaker will decide within the next three to four years whether it will launch a luxury division in the U.S. in the same vein that Toyota launched its Lexus brand.
According to Motor Trend, the decision will hinge on the success of the Hyundai Genesis Sedan. If the car proves successful, Hyundai could launch the Genesis nameplate as its own premium brand, which would likely first include the Genesis Sedan and Coupe. However, don't expect a Genesis convertible to be part of the marque's lineup as those plans have been scrapped due to high costs.
Hyundai vice chairman Dong-Jin Kim acknowledged Hyundai's consideration of a premium brand at a recent event in Korea. "It would cost about a half-billion dollars to set up. It will take at least 13 years to make it break even," Kim told Motor Trend, "and 20 years to cover accumulated losses."
Despite the less than ringing endorsement, that doesn't mean the luxury brand is out. Toyota faced the same odds 19 years ago when it launched Lexus.
With the Genesis Sedan launching later this year, we should have the public's initial reaction to a premium Hyundai by year's end.
but…………. it's STILL a Hyundai no matter what you name it
Isn't this whole thing looks like ass backward? When Honda, Toyota, Nissan established luxury divisions they had solid middle class ownership base. College kids were buying cheapest cars, graduating to mid-size models of the time and needing luxury division when they joined upper ranks of their profession. I don't see any middle class in Hyundai cars. Their cars are cheaper then Japan's Big 3, but that is not indicative of their popularity with middle class.
Does it include an emergency tool kit and body color matched can of Rustoleum?
New Premium Hyundai!
Heater core doesn't dump fluid into the passenger cabin until at least 11,000 miles and the mirrors are more than likely not to fall off for no reason whatsoever.
Rust or not it hasnt set any homes on fire like GM cars. I think Hyundai is confused. What is Kia supposed to be? They need clear definitions of their product line
Who knows? Maybe this premium brand from Hyundai will be a success? The reports about the Genesis sedan have been mainly positive (less the one about it not being a performer from a Korean journalist). And the buzz from the NY autoshow have been positive for the Genesis coupe (even Regis had good things to say about it!)
One thing's for sure … some of the negative press Hyundai is getting lately surely isn't helping their (Hyundai's) cause to cleaning up their image as a budget auto manufacturer …
My aunt could be my uncle, if she had balls.
Back when the Japanese all introduced their lux brands, some high-up at Mercedes commented that he was not concerned because "nobody will pay $40,000 for a Toyota." He sure got his ass fried.
Don't dismiss Hyundai so quickly on this, people. If nothing else, they will make the other lux marques more attainable for the rest of us via price competition.
Price competition and luxury are mutually exclusive. Competition in this segment is based on service, perceived exclusivity and value. Service Hyundai should learn by providing products to middle class, but this is really not the case. There is no exclusivity, whatsoever. Maybe there is a value if cars will come with valet picking up for service and depositing a loaner, but everybody does it. Where does this leaves Hyundai premium brand?
I've said it before, and I'll say it again: Hyundai is a force to be reckoned with. Their cars were a joke when they first came here in the 80's. Nobody's laughing anymore.
"Nobody's laughing anymore" Are you sure about that? HAHAHAHAHAHAHA…..HAHAHAHAHAHAHAHAHAHAAAA…….HAHAHAHAHAHAHAHAHAHAHAH!
Hyundai certainly picked up their act quickly, but an image is hard to shake. I would give them a chance, but mention a Hyundai to anyone raised on MB, BMW and Audi and they will laugh, and it will take a brave or unashamed person to buy a Genesis
Hyundai definitely will be more popular in the markets were cost of purchase is a major consideration. In those markets they compete with Chinese and Indian brands. I doubt that there many people will trade Honda/Toyota/Nissan for Hyundai, there will be few, but not in numbers required to become a middle class staple.
Premium Hyundai is an oxymoron.
I'm in agreement with Stig.
It seems as if they are going about this process the wrong way. It would have made more sense to introduce the luxury division concurrently with the products instead of selling the products under the mainstream brand first and launching the luxury division later. If the Genesis products are sold as Hyundai products first, then they will never be considered as anything other/more than Hyundai products. It seems as though Hyundai is making the same mistake with Genesis that Chrysler made when they tried to launch Imperial as a separate luxury division. Chrysler had previously used the Imperial name on high end Chryslers before they tried to launch the brand as a separate luxury division. Imperial essentially never caught on in the market because it never did ascend its image as a high end Chrysler moniker. Conversely, Lexus and Infiniti were launched in the U.S. with products that had not been previously sold in the U.S. market as Toyota and Nissan products (although they were offered in other markets). Lexus and Infiniti were able to establish their premium images based on what appeared to the public as fresh, new luxury products that did not carry images that had been diluted by the parent mainstream division. I know image is superficial (and usually ridiculously overhyped) and not the sole component of a vehicle that establishes its luxury status, but it does play a large part in the process.
Why bother with the hassle and expense of a premium brand in north america. Move forward with the premium brand in China and badge them as up-level Hyundai in the US. They can cost more money and either people will buy them or they won't.
I might have agreed with the Hyundai haters with the Hyundai fo yesteryear, but not any more. Every car that Hyundai makes is competitive in their respective markets, and some say would surpass the competitors when it comes to the amenity:value ratio. Motor Trend chose a Veracruz over a Lexus RX in a head-to-head comparo, for example. And anyone in the market for a Camry or Accord, would be foolish not to drive a Sonata.
At any rate, in my opinion, now is the time for Hyundai to start the luxury brand. The bargain Hyundais of old I don't think would taint a luxury brand. One of the reasons I suspect that launching a luxo brand is so expensive is the marketing effort involved. I would wager that most nonenthusiasts don't know that Acura is part of Honda, and they don't think for a second that Lexus is somehow a prettied up Toyota. How many Infiniti FX35 buyers realize that a version of their SUV's engine is an option in the Altima?
As has been said, Hyundai is a force to reckon with, and a luxury arm will only make it more so.
Scarface, I just don't see Hyundai in middle class neighborhoods or even driven by students on campuses. How one leaps from lower end to upper end of the spectrum without moving through the middle?
anyone in the market for a Camry or Accord, would be foolish not to drive a Sonata. Agreed The Sonata is a wildcard and should be x shopped with Accord and Camry and the upcoming Mazda 6 looks like some real stiff comp
I just don't see Hyundai in middle class neighborhoods-I disagree I see Hyundais in working middle and upper middle. I do agree that they have to sell the Genesis separatey from the start How will this be placed in the showroom ? will they have it right by the Accent or Tuscon ? The only succesful luxury or near luxury car that was sold under a non pre name was the Millenia(Amanti) by Mazda. Look at what Mazda did and copy it
just don't make it another Lexus or Acura
One of these words doesn’t fit:
luxury, sex, hyundai
I can't even see 2 words fitting together in any combination.
You can fuck in a Hyundai
mazdaman is correct.. most buyers of premium products are interested in prestige, and won't purchase a Genesis branded vehicle if they are aware the vehicles have been sold for the past 2-3 years as Hyundais! It would have made more sense for Hyundai to launch the Genesis coupe and sedan as their own brnad in the US, then quickly follow up with that larger Equus replacement model as the flagship. Waiting to make the decision until 2011 is a mistake.
zoomzoom, do you think buyer of premium product will buy Hyundai under any name?
Hyundai and Premium..Isn't that an oxymoron? I wish Hyundai would just go away and take Toyota with it. Horrible white goods vehicles that just plagarise and advance the art of car design not one jolt!
Good lord… the fact remains, everyone thought Toyondan was off their rocker when they rolled out their luxury marques… So who's to say Hyundai can't do it? All they have to do is roll out a decent luxury product and undercut the established competition… just like Lexus did with MB.
15-20 years from now we're all going to be talking about how ridiculous it is that the Chinese are thinking about creating some luxury nameplate and this whole cycle will start again…
Why I think Hyundai should give it a chance in the US? It's simply because their luxury cars will be cheapest in every segment. There is always a buyer for cheap stuff regardless of the market.
Veda: I just deleted a comment much like yours that wasn't nearly so diplomatic. Let's just say it had something to do with sheep and 'pastoral' was not a keyword.
"My aunt could be my uncle, if she had balls." Shaver
Best comment so far and I agree with the argument that it will still be a Hyuandi and therefore far from luxury. When I see a person in a Hyuandi I do what I would imagine a lot of people do, which i think that said person could not afford a better car.
Every car company didnt start out as the best quality car in the world, it took time to reach there…
GM had to somehow make people believe n Cadillac
Toyota had to somehow make people drive in Lexus
But why cant Hyundai do it?? Is there something wrong with Hyundai?? Every car company had to start somewhere and has to finish somewhere. GM grew and made Cadillac it is today. Toyota made Lexus what it is today, so why cant Hyundai?? I know some of you may say well "Lexus's are nothing but hopped up Toyota's" or "Cadillac's are no good" but thats personal opinion. By corporate opinion and in the corporate world those companies are seen as luxury cars in a luxury class compared among Benz's & BMW's. So who is to say can't Hyundai can't be compared in the same league. Some of you have said "well they haven't even got the middle class person yet".
Is there a Rule Book that states a step by step on how to expand a car company??
People want to connect the Toyota/Lexus dot to Hyundai, for some convenience.
Many differences remain.
People were buying Toyotas. Sales were rising.
Hyundai does not have that problem. Even with more models in the lineup, a sales gain hasn't been seen in years.
Back then, even a 7-series or S-Class were marginal luxury cars.
This is no longer the case. Lexus has knocked the crust out of everyone's eye. Even Caddy has stopped being a Slacker!
And there was less competition then.
Now Chrysler's are $40k+!
If people aren't buying Hyundai's, where are the sales coming from for a more expensive Hyundai?
DrFill
Talk about words or phrases that don't work well together, well jere are two…… "Hundai & Premium Brand"…… stinkless & shit".
I don't want to buy a car from a country whose restaurants have 'dog' on the menu.
"People want to connect the Toyota/Lexus dot to Hyundai, for some convenience. Many differences remain.
People were buying Toyotas. Sales were rising."
Ummm… except for the fact that Hyundai/Kia have been posting steady sales gains over the past few years… For NA alone:
2005 - 731371 units
2006 - 749323 units (2.4% YTY increase)
2007 - 772482 units (3% YTY increase)
For 2007, just Hyundai alone (minus Kia sales) sold vehicles more in NA than Acura, BMW, Buick, Cadillac Hummer, Infiniti, Jaguar, (Kia), Land Rover, Lexus, Lincoln, Mazda, Mercedes, Mercury, Mini, Pontiac, Porsche, Saab, Saturn, Subaru, Suzuki, Volkswagen, and Volvo.
The only brands that sold more were Chevrolet, Chrysler, Dodge, Ford, GMC, Honda, Jeep, Nissan, and Toyota.
When the sales of Hyundai and Kia are combined, the only brands that sold more were Chevy, Dodge, Honda, Nissan, and Toyota.
So… I'd like to know where this notion that Hyundais aren't selling well, especially to the middle/working class?? And they are the ones who are buying the almost all of them, because those above them certainly aren't going to buy a Hyundai and how often do those below them buy brand new cars?
The fact is that they're selling and selling well as well as making steady sales increases year-over-year… which again, makes it perfectly acceptable to make the correlation with the Japanese automakers of 15-20 years ago.
Any negative posts here are presented by ignorant fuckwads who would be better served by learning some history.
Ignorant monkeys spitting their shit here is exactly why people believe BMW is luxury … kill yourselves, fools.
This discussion is moot. What we are witnessing here is history repeating itself for the 10th time in the auto world. Hyundai makes decent cars, relatively as high quality as Toyota was making (if not better) in the late 1980's before LExus bowed. The time is right.
I truly hope that Hyundai looks closely at the tanking sales of Acura and Lexus, and decides against this. America really does not need ANOTHER faux-luxury Asian nameplate.
Or they can look at the tanking sales of GM along with their recalls and that they injure people and set homes on fire with their trucks.
Lets be fair
"For 2007, just Hyundai alone (minus Kia sales) sold vehicles more in NA than…"
True but how much was the profit margin on each vehicle? I think the real question is how much money the company makes at the end of the year.
Veda, Unless your Porsche, perhaps, volume is the green light to begin talking about profit margins. No car company would pass up the opportunity to sell more cars one year than it had previously.
I think the negativity towards Hyundai in these posts just proves exactly why Hyundai is thinking about a luxury nameplate. You can question whether or not it's a good idea to try to break into the luxury market, but if Hyundai is going to do that, they need another nameplate. Building on my last post, one of the reasons I think it's expensive to launch a nameplate is the marketing involved. When done right, the average consumer won't equate Hyundai's luxury brand with the "Hyundai"–that used car brand they buy for their newly licensed 16 year-old kids.
Commodore… it's not even fair to put Lexus and Acura in the same sentence. Regardless of whether one is particularly keen on Toyota or not, the fact remains that they figured out how to really compete in the luxury market especially against the established makes… while it seemed like Honda wanted to march to the beat of their own drummer… and as we can all see, they've faired no where near as well as Lexus… and that's for one big reason - they barely compete with Lexus because they're not in the same league as Lexus. It's hard to compare luxury against premium/entry-lux. If Honda's smart… they'll start getting things right before the Acura brand dwindles even further than they already have.
To tailgate on AMGoff's comment… Commodore failed to realise in his statement that Lexus is the number one selling luxury brand in the US… they had been running second place to Caddy for a long time and actually passed them in 2k7. [9.03pm not am]