Hyundai on Lexus: “If Toyota can do it, why not us?”

March11

genesis/hyundai-genesis.jpg

With the launch of its Genesis luxury sedan, Hyundai is setting itself up to one day launch a full-blown luxury brand like Toyota’s Lexus or Honda’s Acura. Such a move is still years away, but Hyundai executives are looking to the future. “If Toyota can do it, why not us,” asked Hyundai R&D boss Lee Hyun-Soon.

But the first step is boosting the company’s credentials as a maker of high-end cars. The aim of the Genesis rear-wheel-drive V8-powered sedan is to do just that.

Hyundai discussed “a lot” whether it was time for a new brand, and decided the first goal should be to “enhance the Hyundai brand image” and improve dealer profits, Frank Shin of Hyundai’s American division told Automotive News.

The Genesis will bolster the company’s image, said Shin. Then consumers can “believe in the Veracruz, Sonata and so on,” he explained.

The short term goal is to elevate Hyundai’s reputation to the level of Honda or Toyota. Only then might it be time for a luxury brand to push beyond that point.




 


34 Comments

  1. They could have started by not making it butt-ugly.

    Comment by RicardoHead, posted on March11 at 9:17 am
  2. Toyota Lexus are great brands produced by the Japanese. Hyundai is inferior garbage produced by Koreans….basically Japanese wannabes……..If it was as simple as saying ‘if the Japanese can do it why cant we’ then we would live in a almost perfect world…..unfortunately not many countries scan keep up with the Japanese…….all they need is an idea from the Germans or Italians to start them off………wish Hyundai would just disappear and die……would make road travel a lot more enjoyable for me.

    Comment by V2, posted on March11 at 9:25 am
  3. V2 I thought jacking off behind the wheel of your Elantra made your road travel so enjoyable.

    Comment by RicardoHead, posted on March11 at 9:34 am
  4. v2 lexus and acura started out as a basically European wannabes as well so what’s ur point?

    Comment by e46Ne90, posted on March11 at 9:39 am
  5. v2, you’re forgetting that honda and toyota didn’t start at the top. they were american wannabes. later they got identities (as bland as they are).

    Comment by Syrax, posted on March11 at 9:41 am
  6. Hyundai’s have improved quality considerably but I don’t think its on par with Lexus just yet.

    Comment by Heart64, posted on March11 at 9:51 am
  7. When Honda and Toyota launched Acura and Leyus they were nowhere close to where they are now in image terms.. So why not do it now, Hyundai?

    Comment by El Aleman, posted on March11 at 10:12 am
  8. While they are improving w/each generation so are many others. They still mainly sell on price and warranty. Toyhonda both sell on perceived quality, value and strong resale.

    Comment by SwerveEarly, posted on March11 at 10:31 am
  9. Guys, don’t spoil V2’s delusion. He’s probably not old enough to remember where Toyota, Honda, and Datsun (Nissan) were in the ’70s, and how they came to dominate the American Big Three. Let’s let his ignorance remain blissful.

    Hyundai is making all the right moves.

    Comment by 350Zed, posted on March11 at 10:42 am
  10. V2 your just an ignorant idiot. Hyundai has allowed millions of people all over the world to afford a new decently equipped car. As for quality, still not up to Lexus and Acura standards but getting very close. Hyundai is now definately better quality and more reliable than the domestic automakers. It wasn’t that long ago when Ford and GM laughed at Hyundai but now the tables have turned. Especially on Ford, I guess you can say Ford today is what Hyundai was in the late 80’s in terms of status. Keep in mind Hyundai is a massive company. They don’t just make cars, they also build the worlds largest oil tankers, construction and mining equipment. They even make giant engines for their ships. They got massive amount of money for R&D.

    Comment by moto-racer13, posted on March11 at 10:47 am
  11. i dont know how many of you actually drive or spend time in newer hyundai’s and kia’s but i do on a daily basis — working at carmax - i drive somewhere around 80 various different cars a day, all basically new or at least younger than 5 years and i can tell you being one of the naysayers when it came to the koreans im am THOROUGHLY impressed, interior qualities are currently 1 or 2 notches below lexus and on par with toyota. honda has stepped their game up and i believe are on a COMPLETELY different level than toyota. but the point is that hyundai is seriously catching up,

    I personally drive an infiniti FX35, and im really nit picky when it comes to interior materials and after spending the time in my car, trust me saying that if i were any japanese auto company i would be shaking in my skin.

    Comment by dsmdriver84, posted on March11 at 10:51 am
  12. moto-racer13, i agree –hyundai has left domestics behind in the dust

    Comment by dsmdriver84, posted on March11 at 10:53 am
  13. Hyundai has certainly not “left the domestics behind in the dust”. That is a ludicrous statement to say the least. Everyone knows Korean cars are junk, and if you dare drive it off the lot…whoopsy! I sure hope you LOVE that car, because guess what scooter? You’re out 2/3 of what you paid for it. They have no resale value, they’re God-aweful ugly, and after you realize this about your Hyundai, it’s too late because no dealer wants them. Two Hyundai dealerships in my area closed their doors in 2007 because their lot was filled with garbage cars they couldn’t sell–both new and used, so I’d have to go ahead and disagree with you there little buddy.

    Comment by CleanGTO, posted on March11 at 11:51 am
  14. GTO, Hyundais now are always ranked higher than domestics in quality surveys. As for resale value, domestics are an absolute bargain used. Look at a 3 year old escalade, they are between $15-20 grand cheaper than new, and thats only after 3 years, thats massive depreciation. I don’t see pontiac selling cars in other countries, but Hyundais you can find all over the world, even cruising the German autobahns. I think anyone buying a new domestic is an idiot because of the depreciation. Buying a used one is probably ok, but a used domestic will be a lemon guaranteed!

    Comment by moto-racer13, posted on March11 at 12:01 pm
  15. dsmdriver84,
    Interesting perspective.

    On New Year’s Eve, I was rear-ended. My rental car after that was a 2006 Focus, which was barely, and I mean BARELY a car.

    The autobody shop screwed up and is delaying the repair of my car, so now I’m driving their loaner, a 2000 Hyundai Elantra, which is, and trust me when I say this, the absolute ****tiest little car I have ever driven.

    Now, that was the Hyundai of then, this is the Hyundai of now. Hyundai is not the same. V2’s opinions are the clear minority. If you’re in the mood for a Camry, test drive the Sonata. The Eclipse strike your fancy, you would be good to drive a Tiburon. And pretty soon, if you think Mustang power’s where your money’s at, check out the Genesis Coupe.

    Hyundai is a force to be reckoned with. One day they *will* have a luxury division and when they do, it’ll make me think twice about replacing my ‘05 TL with another Acura…. once it’s out of the shop, that is.

    Comment by Scarface03, posted on March11 at 12:55 pm
  16. So we have a Korean garbage brand trying to emulate the Japanese garbage? Who cares, GM will have obliterated both of them before that happens. Remember, Toyota only has a couple of years left in the auto business and Hyundai is a stillborn reject trying to build a car on par with a Chevrolet Cobalt (and failing miserably). They still have the pathetic quality of a Chrysler with the dependibility (lack of) of a Ford.

    Comment by Need more oil for GM, posted on March11 at 1:31 pm
  17. ^^^ Please actually learn something about cars before posting again. Thanks.

    Comment by LexusSoarer, posted on March11 at 2:57 pm
  18. when the Chinese come, Hyundai will be hirt the most. The market for people who do not care about car beauty, brand image, horsepower, quality, reliability, handling, country of origin, etc., that market, which now goes to Hyundai and Kia, will be lost to the Chinese. And then lead posioning will kill that market.

    Comment by TOZO, posted on March11 at 4:10 pm
  19. The newest Hyundai’s are quickly catching up, I sat in an Elantra recently, and interior quality was good, maybe a little worse than a Ford Fusions, but it was nice. Very bland though, not a good ride, and everything else aside from first impressions for me to say are to sum it up, negative…

    Interior quality is not enough to justify them as being a good luxury brand. Many of you may solely base your opinions on that, but as long as the quality of parts is good, I could care less about itsy bitsy panel gaps and horsepower. What I really care about is if it will be reliable, if it’s rides nicely, and probably most personally is how utilitarian it is.

    Comment by jayjc08, posted on March11 at 4:51 pm
  20. TOZO- It’s hurt, not hirt.

    Comment by jayjc08, posted on March11 at 4:52 pm
  21. The ting that makes Lexus so sucessful is not just the product. The product is great, but the delaer body set them apart. Lexus has the highest customer statisfaction and retention rates in the industry. They are also the most profitible stores in the industry. You can’t try to market your brand as being a luxury marque if it is a 10-year old renovated store attached to a Mazda/Volvo showroom with 3-person staff who aren’t customer service-oriented.

    Comment by Kaizen, posted on March11 at 5:05 pm
  22. pardon my spelling

    Comment by Kaizen, posted on March11 at 5:06 pm
  23. V2: In Australia, Hyundai is the brand for single mums and the unemployable……it will never progress pass that.

    How come it’s not surprising that the most stereotypical, racist, sexist responses are from an Australian or an American? How about keeping the discussion at hand relevant and not so blatantly ignorant? Guess you have to keep your cojones on show for the world to see how manly you aren’t?

    OK … back at the topic at hand, Hyundai’s ascent from 3rd rate toward a premiere marque has been meteoric. What they’ve done in 20 years is almost as much as most of the Japanese companies achieved in 30 years. Various quality awards, worldwide expansion, profits … they are the only manufacturer that the ‘king of the hill’ Toyota has on their radar. Hyundai has the same dilemma that Toyota/Honda/Nissan had 15 years ago … how to create an image of a tier one car company.

    Those who are looking at a BMW or Mercedes will not cross-shop for a Hyundai. They are too much a brand snob now to see much into Hyundai. Once they develop a following, they will be as loyal to the brand as Lexus-philes are to their brand. Then people will start to cross-shop (or so the theory goes). Getting from theory into practice is the $1,000,000 question. I think Hyundai needs to create a new brand to get into the door of the big boy’s league.

    Comment by inspire, posted on March11 at 5:31 pm
  24. If I ever needed to wipe my a$$ with a story, this would be it.
    DrFill

    Comment by DrFill, posted on March11 at 5:47 pm
  25. V2, you suck.

    Comment by carbonsigma, posted on March11 at 6:08 pm
  26. let them djust cheapen the world

    Comment by bigp, posted on March11 at 8:21 pm
  27. Comment by V2,

    . . . . “In Australia, Hyundai is the brand for single mums and the unemployable……
    . . . . it will never progress pass that.”

    That’s not a bad market. Slutty women and lazy men are about 93% of Australia.

    Comment by RicardoHead, posted on March11 at 8:49 pm
  28. inspire raised great point. In US Hyundai is not for students or middle class, it is a ghetto car. When Toyota, Honda and Datsun breaking into US market they started on campus. Students were drivers of Civics. When they finished college it was time for Accord (coupe). Same was with Toyota. Those who could not afford Celica drove Corollas. In my freshman year I was dreaming of Opel, Renault or Peugeot - those were status cars on campus (wealthy kids drove parent’s older Volvos). But in junior/senior year I realized that for half the money I can get Civic/Corolla/B210 which drove just like Europeans but did not require my father and I to spend weekends repairing them. I almost lost contact with my old man till I decided to restore and race Volvo 122 in rally (back under the car). Where is Hyundai in this picture?
    Honda, Toyota and Nissan did not start selling premium cars in US before they established new level of customer service: luxury divisions. Koreans are not on the same page or even do not own the book yet.

    Comment by autonut, posted on March11 at 8:54 pm
  29. “If Toyota can do it, why not us?”

    They’re absolutely right, and they’re on the right track. I wonder what would happen if the Big 3 took some humble pie and asked the same question.

    Comment by Brendino, posted on March12 at 1:22 am
  30. oh come on guys and gals! hyundai is right for doing this and it was bound to happen one day!

    Comment by nestle_s, posted on March12 at 8:24 pm
  31. pardon my spelling too.

    Comment by TOZO, posted on March12 at 8:30 pm
  32. What would Hyundai call its luxury brand?

    Comment by VegasBenz, posted on March12 at 9:36 pm
  33. If the car drives well, it’ll be a heck of a purchase.

    Comment by angelo, posted on March14 at 2:28 pm
  34. If you ask me, Hyundai should go upmarket,and leave the Elantra and other cheap cars out of the mix. Make kia the cheap brand,and Hyundai (With dedicated models) the luxury brand.

    V2: “Toyota L—s are great brands produced by the Japanese.”

    Uh,Toyota and L—s are two brands of the same cars. And you can get a better car for less, unless it’s ther Yaris (CS 180) you’re talking about.

    e46Ne90:”v2 l—s and a—a started out as a basically European wannabes …” Actually they started out as camcords, then the strategic badge placement, and you’ve got “japanese luxury.”

    Heart64: “Hyundai’s have improved quality considerably but I don’t think its on par with L—s just yet.”
    With every improvement in quality,Hyundai getsfurther and further away frombeing on par with Toyota’s faux-luxury division.

    dsmdriver84:”I personally drive an FX35.” You drive a really good car.

    Scarface03 “If you’re in the mood for a Camry ….” Then you’re already dead.

    Need more oil for GM: “Remember, Toyota only has a couple of years left in the auto business.”
    No. Retards haven’t stopped reproducing, so you’re wrong about that.

    TOZO: “And then lead posioning will kill that market.” Classic ****!

    Kaizen: “The ting that makes L—s so sucessful is not just the product.” Right, it’s the marketing.

    RicardoHead: “Slutty women and lazy men are about 93% of Australia.”That’s some classic **** as well, although I spent Christmas in Kiama Downs and didn’t see many sluts.

    autonut:”Honda, Toyota and Nissan did not start selling premium cars in US before they established new level of customer service: luxury divisions.”

    Nissan started selling a “premium car in the U.S. in ‘82. When toyonda will is anybody’s guess.

    Comment by jackjimturkey, posted on March23 at 12:32 pm

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