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Is There Room in the Luxury Market for Hyundai?

Stever@EdmundsStever@Edmunds YooperlandPosts: 38,968
edited February 12 in General
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Comments

  • gagricegagrice San DiegoPosts: 28,679
    If they offered the Veracruz with a diesel engine it would get my attention. I was going to look at one and they were sold out. I think the Motor Trend face off with the RX350 was a brilliant move on Hyundai's part. Why not go after the top seller in the class?

    I also think the Azera from the outside is better looking than the competition. I will check them out when they get a Veracruz in for a test drive.
  • drfilldrfill Posts: 2,484
    I'll make this work, but your not helping me.

    Now I have to repost the start. :confuse:

    DrFill
  • drfilldrfill Posts: 2,484
    Hyundai ain't in Lexus' class?!? :surprise:

    They need to pony up some cash, and step into the major leagues.

    They obviously don't want anything to do with Lexus.

    Can they handle Acura? Infiniti? :confuse:

    DrFill
  • Stever@EdmundsStever@Edmunds YooperlandPosts: 38,968
    Ok, we know you aren't in the market for a Hyundai.

    Anyone else care to comment on whether they'll darken the door of a Hyundai dealership?
  • joe97joe97 Posts: 2,248
    There is room but one with no margin for error. Hyundai has to do it right out of the gate or don't do anything.

    That said, I have my eye on the RWD luxury sedan. Saw the near production concept at NYIAS up close and in person. I will defn. be having a tough look next year when it debuts.

    Steve, maybe add the Azera to the list?
  • joe97joe97 Posts: 2,248
    The latest I am hearing, the Veracruz diesel should be the first Hyundai in the US with the diesel option, sometimes in 2009 I think.
  • gagricegagrice San DiegoPosts: 28,679
    I don't think they are ready for a separate dealer network. The expense would be too great. I think letting the public know you can get a luxury car without luxury pricing is very appealing. I know my cousin buys top of the line Camry over the same ES350 only because she is extremely tight. For her there is not enough difference to justify the premium.

    Whether folks buy the Veracruz for its luxury will be determined by the buyers. It is a lot of CUV for the buck.
  • joe97joe97 Posts: 2,248
    Luxury Brand Name
    Dealer Network
    Strategy and Logistics (umbrella for many sub-items)
    And most importantly:

    Product Portfolio

    I think the Veracruz should shift over, the RWD sedan and coupe obviously, with another sporty coupe slotting in the current spot of Tiburon. Also, the production of Portico concept and the more luxurious version of the RWD sedan (LWB).

    I wouldn't mind seeing the brand name called Genesis :)
  • andre1969andre1969 Posts: 21,590
    how ready Hyundai is to enter the luxury market, but I have to admit that the Azera's pretty nice. Heck, even in its cheapest form, with the velour interior, it looks like they definitely put some effort into it.
  • mpuzachmpuzach Posts: 635
    ...Hyundai could very well become a force to be reckoned with in the luxury market. Though I don't think there's been any info released on the interior yet, what we do know includes:

    V8 power with "well over 300 hp".
    Rear wheel drive.
    0 - 60 in "well under 6 seconds".
    Exterior styling with more than a hint of the current BMW 7-series.
    As proven by the current Santa Fe, Azera, and Veracruz, a company with plenty of determination to out-class the class leaders.

    As a life-long "car guy" (actually, I'm probably more of a "car snob"), until very recently you'd have had a better chance of seeing me fly to the moon than owning a Hyundai. That changed after my first test drive of a 2007 Santa Fe. I'm now the proud owner of a 2007 Santa Fe Limited AWD. It's an outstanding SUV and I couldn't be happier with it. If Hyundai produces the luxury Genesis (which seems to be a virtually sure thing), I'll be first in line to check it out. In fact, I'll go so far as to say that I'll take a close look at it not even though it's a Hyundai but because it's a Hyundai.
  • gagricegagrice San DiegoPosts: 28,679
    Do you think that Hyundai can ramp up production fast enough to supply another network of dealers? If they cannot build enough Sonata 4 cylinders and are selling out on Veracruz it looks to me like they need more production facilities.
  • iluvmysephia1iluvmysephia1 Posts: 5,663
    that Lexus is merely smoke and mirrors and Mercedes is ultra-snobbery at its best...that Hyundai and their new rear-wheel drive Genesis sedan, Veracruz diesel variants and et all, will prevail.

    It's hard for me to look past the great value Kia and Hyundai bring to the marketplace, and I'm not really a large car or luxury car fanatic...but the new Genesis RWD smacks of reality for mass conversions. No, beyond just handing out flowers at the airports...this will continue to attract the masses to the Hyundai brand. DrFill...you have been a source of extreme entertainment the past several months. Your loyalty is kind of...ummm...scary. No, I don't want any Toyota flowers, fill-ster.

    2008 Mitsubishi Lancer GTS

  • lemkolemko Posts: 15,071
    ...did go into the luxury class, they need to come up with another marque like Toyota did with Lexus. I doubt many people would motor up to the front door of the country club in a plush new Hyundai.

    I like the Kia Amanti just because it is so bizzare! Who else would build a Buick LeSabre with a Mercedes E-Class front end with a Chrysler grille? Trouble is, seeing the cheap-looking KIA oval on the steering wheel kind of reminds you you're in a poseur luxury car. It's kind of like walking out of a store with a new Armani suit only to look back and see Wal~Mart on the building and closely looking at the suit's label to see it's a "Freddie Armani."
  • gagricegagrice San DiegoPosts: 28,679
    US Americans are status conscious for sure. I think adding a luxury line may be counterproductive for Hyundai. The cost of the added dealer network will only raise the price and not the quality of the vehicles. Maybe in 10 years when they have a dealer network that is able to handle two lines. Right now Hyundai is in stores with other brands. My local Hyundai dealer is also the VW dealer which is an add-on to a very large Ford dealer.

    I think giving people more for their money and that great warranty without the added $2000 at closing is a big plus.

    Hyundai needs to add more production in the USA, expand current dealer network & maintain good QC. Customer satisfaction is riding high for Hyundai. They need to keep that momentum going and do not worry about appealing to the Country Club crowd. They are a very small part of the buying public. I think the Veracruz will appeal to the very large soccer mom population that cannot afford the over priced nameplates.
  • bumpybumpy Posts: 4,435
    Right now Hyundai is in stores with other brands.

    The Hyundai dealerships I've seen are stand-alone facilities, though I don't doubt there are some multi-brand sites still around.
  • gagricegagrice San DiegoPosts: 28,679
    It looks like I have 7 Hyundai dealers within 30 miles of my home. Five stand alone and two combo dealers. That should be enough. There are only 6 Honda dealers and 7 Nissan dealers in the same area.
  • joe97joe97 Posts: 2,248
    Do you think that Hyundai can ramp up production fast enough to supply another network of dealers?

    Great question. Exactly why I think Hyundai has to do everything right (almost perfect) coming out of the gate (or don't do anything). In other words, they have to almost predict the number of orders (buyers) and the lead time. Preparation is the key.

    Now regarding the question whether a luxury brand should be established? Hyundai has two routes to take (obviously), continue within its Hyundai brand, and divert outward to a new brand

    For luxury brand:

    Status conscious symbol
    Past history and brand perception

    For Hyundai brand:

    Brand recognition, since the luxury will be starting out zero (good or bad). It will be up to Hyundai to build up like the Japanese three did. It won't be easy but it can be done.
  • fintailfintail Posts: 32,914
    VW tried luxury an fell flat on their face - and their entrant was not a horrible car, just wearing the wrong badge.

    If a lux buyer won't seriously consider a German made luxobarge wearing a "VW" in a circle", why will he consider a Korean made unit wearing a swoopy "H" in an oval? That emblem will damn it, no matter how good the car is, itself.

    Hyundai is 50 years off having legitimate lux chances. They might be able to get up into Lexus ES land, but not into REAL lux land.
  • gagricegagrice San DiegoPosts: 28,679
    I don't see them trying to venture into the "S" or "LS" market, as VW tried to do. They are going after the money making "ES" and "RX", both re-badged Toyotas. Even the "E" class Mercedes would be a stretch. The difference these days in content is not what it was 20 years ago. I think one of the biggest selling points is the warranty. Buying a car today no matter what the brand, you need a warranty way into the future. Unless you dump it in 3-5 years. It used to cost $800 for a transmission rebuild. Today a Honda transmission is 5 grand.
  • joe97joe97 Posts: 2,248
    The problem VW faced was the company tried to sell a $60K+ (base price) car, an amazing car nonetheless - the Hyundai entry will start less than 30K. Based on current demographic of the Azera & Veracruz, I don't think it will be a stretch to say Hyundai will enjoy the same success the Azera and the Veracruz have had so far.
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