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.
