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Is There Room in the Luxury Market for Hyundai?

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  • bobadbobad Member Posts: 1,587
    I don't think the headlights are similar, though. Benz is very triangular, and Hyundai's isn't at all. The Genesis' headlight is pulled back far more, sharper, and doesn't look triangular.

    Headlights and front ends on modern cars are naturally going to resemble each other. That's because their shape is determined in a wind tunnel. In the past few years, physics has more to do with car styling than stylist's.
  • ateixeiraateixeira Member Posts: 72,587
    Yet in this case they really don't resemble the Benz.

    Here's proof, side by side I put the lights of the Benz with the Genesis and the Veracruz. Click the thumbnail below to see a big pic.

    The Benz is a triangle and has 2 projector beams. They are convex shaped.

    Now look at the Genesis light, in the middle. It's trapezoidal and has a concavity in the upper half that the Benz lacks. It also has just one projector.

    It would be hard to be any more different, actually. Look closely.

    Far right is the Veracruz. It's taller, naturally, since it's fitted to a taller crossover vehicle, but the basic shape is what inspired the Genesis. There is a clear family resemblance. Trapezoid? Check. Concavity? Check. One projector? Check.

    If anyone thinks the Genesis' headlight looks exactly like the Benz I suggest a new pair of eye glasses. ;)
  • dean3927dean3927 Member Posts: 80
    What do you think?">

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  • ateixeiraateixeira Member Posts: 72,587
    Looks like a 'chop to me.

    Done bippu style, which is usually reserved for Japanese executive sedans.

    Doesn't look right.
  • cdmuilecdmuile Member Posts: 152
    Nice post Ate. They're very different but wind tunnel generated for sure.
  • ateixeiraateixeira Member Posts: 72,587
    They blogged it for Straightline, too.
  • mattandimattandi Member Posts: 588
    I stopped by a local Hyundai dealer last night to check out the Veracruz. I was impressed. Here is a quote from the Veracruz brochure.

    "Want a shorter warranty, fewer standard features, and a louder cabin? Just ask for a Lexus."

    Now that's in your face. :P
  • bobadbobad Member Posts: 1,587
    "Want a shorter warranty, fewer standard features, and a louder cabin? Just ask for a Lexus." Now that's in your face.

    Wonder what the Lexus salesmen are saying about that, and what they will say about the Genesis? :blush:
  • mattandimattandi Member Posts: 588
    Should be fun to find out. It is not as convenient for me to just drop by the closest Lexus dealer, but I think I will and take that VC brochure with me. Immediately following that statement, the brochure went on to directly compare the VC the the RX350 on price and the Benz GL450 on cargo capacity.

    This thread and others are full of back and forth opinions on whether or not Hyundai can compete in the luxury market or build vehicles that compete with lux vehicles. Seems apparent to me that Hyundai has already decided that they can, and they are.
  • backybacky Member Posts: 18,949
    First they might say, in somewhat mock surprise, "Genesis? What's Genesis?" And then the shopper can reply, "Don't insult my intelligence, Kirk!"

    OK, that's pretty obscure. But I'm sure someone here will get it. ;)
  • tenpin288tenpin288 Member Posts: 804
    Khannnnnn!!!!!!!!!

    Sorry, couldn't resist. ;)
  • louisweilouiswei Member Posts: 3,715
    Wonder what the Lexus salesmen are saying about that, and what they will say about the Genesis?

    They don't have to see anything.

    If a person is cross-shopping Hyundai and Lexus, it's more than likely that person will end up buying a Hyundai. Hardly any Lexus buyers are the so called "value buyers".
  • louisweilouiswei Member Posts: 3,715
    the brochure went on to directly compare the VC the the RX350 on price and the Benz GL450 on cargo capacity.

    If you want to embarrass yourself, go right ahead.

    Most likely what'll happen is the Lexus sales rep will listen to your "VC vs RX350 case" with a smile, ask you if you are interested in the RX350, offer you a cup of espresso and cookies, then ask you if there are anything else he can do for you.

    If you insist to talk about the brochure he'll just leave you alone and you'll end up looking like a fool.
  • ateixeiraateixeira Member Posts: 72,587
    I have to agree with Louis.

    A Lexus owner shopping for value would be looking for a Toyota.

    In a way, it's good that Hyundai is aiming high, but I think Lexus will simply not respond. And Toyota is easily winning the sales battle vs. Hyundai.

    It's not a bad idea for Hyundai to use that marketing, though, because their customers are indeed shopping for value, and will feel better about their purchase when it's compared to upscale brands.

    Hyundai has Kia on the low end so that can slowly creep upscale, but a company that sold the Excel and Scoupe will never, ever, be on par with Lexus in the minds of customers. You'd have to erase everyone's memory.
  • backybacky Member Posts: 18,949
    However, the company that sold the 1968 Toyota Corolla is now on a par with Lexus in the minds of consumers. A company from the country that was an enemy of the U.S. in WWII now sells more cars in the U.S. than everyone but GM.

    "Never" is a very long time. Memories fade. People die--new buyers replace them.
  • louisweilouiswei Member Posts: 3,715
    Actually, there is a difference: I don't see the LS400 carrying a Toyota badge.

    I have no beef against Genesis, no beef against VC and absolutely no beef against Hyundai going after the luxury market. What I have beef against is the idea of Hyundai challenging the luxury brands with the Hyundai badge.

    So, in simpler terms, I am not questioning Hyundai's ability to make luxury cars, I am questioning their business decision.
  • mpuzachmpuzach Member Posts: 635
    I'm inclined to agree with you, Louis. While I'm confident that the Genesis won't disappoint (especially the V8 version), I don't know how well it will sell with a Hyundai badge on it. We'll know soon, though.
  • joe97joe97 Member Posts: 2,248
    It doesn't have a Hyundai badge ;)
  • fintailfintail Member Posts: 58,431
    Maybe Genesis should be the division (like Lexus/Acura/Infiniti) instead of a model...
  • louisweilouiswei Member Posts: 3,715
    Maybe Genesis should be the division

    Ding Ding Ding...

    BINGO!!!
  • backybacky Member Posts: 18,949
    The LS400 doesn't carry a Toyota badge, but how many Lexus buyers do you think are unaware that Lexus is part of Toyota?

    Putting a different badge on the Genesis won't make it a better car than it is. But it will add considerably to Hyundai's costs for marketing, selling, and supporting the Genesis. Also it would delay the launch of the Genesis, since it would take time to construct the new marque. Hyundai's brand needs shining up; Genesis can help do that, until Hyundai is ready to launch a luxury brand. I don't think 2008 is the year for that.
  • mattandimattandi Member Posts: 588
    Obviously not many salesmen would be interested in discussing a competitor's propaganda. Any salesman worth their salt, though, should be able and willing to talk about the relative merits of their product compared to the competition, and they should do so enthusiastically. Now, the typical Lexus salesman may not take Hyundai very seriously as a competitor, and I am willing to bet that that is exactly what Hyundai wants.

    Hyundai is pushing the issue. Whether or not buyers will "buy it" remains to be seen.

    There are a variety of reasons I would not seriously consider an RX that have nothing to do with price. Primarily, my wife just does not like them. She never has cared for the look. Once I get to that, there is not much reason to continue. Actually the GX more closely meets what I am looking for right now.

    Starbucks has conclusively shown that people are willing to pay stupid $$$ for coffee and cookies. They built quite an empire along the way. I suppose I could thank the salesman for Lexus figuring out a way to get others to pay it for me. ;)
  • mattandimattandi Member Posts: 588
    If a person is cross-shopping Hyundai and Lexus, it's more than likely that person will end up buying a Hyundai.
    Again, Hyundai execs are smiling at that thought.

    Hardly any Lexus buyers are the so called "value buyers".
    Now, I know you didn't really mean to suggest that the typical Lexus buyer considers value to be unimportant. :)
  • mattandimattandi Member Posts: 588
    I can remember a time when the prevailing sentiment was that someone would have to be out of their mind to pay premium money for a Japanese car. Mis-steps are forgotten. Takes a while, but it does happen.

    I don't think Hyundai is attempting to steal away the current luxury brand owner. They might get a few, but I think their target is the up and coming buyer. This buyer may indeed cross shop to established premium brands, but Hyundai is hoping to convince them the premium price just doesn't make sense.

    I also do not get a sense that Hyundai has any interest in creating a new luxury or premium division. It appears they are positioning Hyundai as the division that offers the upscale product, though not exclusively the luxury product or the whole typical luxury experience (though buyers of their more upscale models may receive a few more perks somewhere in the mix). They are positioning Kia as their division for the more price conscious buyer. Seems to be an unusual approach, but we'll see if they can stick to it and somehow make it work.

    These impressions are also reinforced by language from the brochure. "When it comes to features, amenities and performance, a fancy nameplate isn't always guaranteed to give you the bigger bang." Sure, it's marketing mumbo jumbo, but if that attitude is driving their direction, we will not be seeing a luxury division from Hyundai.
  • mpuzachmpuzach Member Posts: 635
    "It doesn't have a Hyundai badge."

    I'm sure it will when it hits The States.
  • bobadbobad Member Posts: 1,587
    Actually, there is a difference: I don't see the LS400 carrying a Toyota badge.

    Do you really believe Lexus owners are that, uh, intellectually and reality challenged?

    If Toyota had launched their luxury brands carrying the Toyota badge, I don't think sales or perception would be a bit different today. By and large, people know quality, reliability, and value when they see it... even people in upper income brackets.

    It appears the powers that be feel that current Hyundai models have nothing to be ashamed of and a lot to be proud of. More power to them for pulling up their brand instead of trying to fool people.

    That said, they will have challenges with their dealership network. The Genesis may be intended to improve their dealerships as much as to improve their product image.
  • bobadbobad Member Posts: 1,587
    Khannnnnn!!!!!!!!!

    Wonder if the Genesis will have rich Corinthian leather? ;)
  • jaxs1jaxs1 Member Posts: 2,697
    Obviously, they are not trying to "fool people" since you have to know what dealership to go to buy one. They can't sell the car if people don't know it's a Hyundai and is available at the Hyundai dealership.
  • joe97joe97 Member Posts: 2,248
    That is the case already in some parts of the world.
  • joe97joe97 Member Posts: 2,248
    Actually, the waterfall design w/o the logo is likely to make the cut. The mesh design with the logo was seen also at the Detroit auto show, but not officially unveiled like the waterfall design.

    Again, the waterfall design comes off as a the more aggressive in terms of looks.
  • joe97joe97 Member Posts: 2,248
    Already seeing ads on the Hyundai Genesis here in Edmunds so I don't want to hear people complaining about Hyundai not stepping up on the marketing/advertising front (which was never the case in the first place). Plus we have the SuperBowl coming on, which Hyundai is throwing its hat in the ring for the first time.

    Sometimes we should just be happy this car is offering so much for so little...a Genesis brand, let's say, of the exact same car, would likely add at least 10K more in pricing with zero equity.

    On that note, Genesis BH 330, 380, 460 (BH is the code name of the project, like E93, and the name convention used in S. Korea) would be just like almost every luxury model out there, alpha, alpha-numeric, numeric. I'm so glad Hyundai is carrying the Genesis name, GS, M, RL, for example, just mean so much, so memorable, not...
  • shirley1539shirley1539 Member Posts: 30
    ateixeira,

    The old people that experienced the Excel and the Scoupe will eventually die off. There is a new generation of buyers born everyday. I not not a big fan of Hyundai and I'm not defending then. I'm just saying the obvious. They are always re-marketing them selves. Eventually they will surpass everybody else in sales. They offer a decent vehicle with plenty of peace of mind and at a reasonable price. As Toyota and Honda's price keep soaring up more and more people will starting turning to Hyundai. This sounds ugly but analyst do predict this will happen in the near future.
  • backybacky Member Posts: 18,949
    I actually do remember the first Excel, and it was a really primitive car. The 2nd generation wasn't nearly so bad, and in fact my sister owned one for many years and it held up well before being totalled in a crash. But I've seen the rapid progress Hyundai has made and was willing to take a chance back in 2000 on an Elantra, because I liked the car better than anything else available in its class at that time and of course there was the long warranty to back it up. It was a great car for me and now for my (other) sister, and it's still running like new. Because of that experience I bought another Elantra in 2004. These have been pleasant, solid, reliable cars, but not nearly as good as what Hyundai has produced in recent years. IMO Hyundai is taking another giant leap forward with the Genesis, as they did in 2000 when they introduced the Santa Fe, the XG300, and the 3rd gen Elantra, and in 2004-6 when they executed on their "7x24" (which turned out to be 8x24) program. I think Genesis will change a lot of buyers' minds about what Hyundai as a brand is all about. Studies have shown that people already like what Hyundai produces, when the badge is covered (e.g. the recent blind test on the Veracruz). But when the badge is revealed, acceptance plummets significantly. I think that is a big objective behind Genesis. Not so much to sell some luxury cars, although Hyundai certainly wants to enter that market, but to raise the overall perception of the brand. In a year or two we'll see how successful that strategy is.
  • fintailfintail Member Posts: 58,431
    Redesign the badge. That would help to a significant extent, in my opinion. The flying H looks cheap and very 1992.

    If I am not mistaken, Toyota came up with its current badge right after Lexus was introduced. I can see some logic in it.

    I won't debate that Hyundai has improved exponentially in the past 20 years or even the past 10. But perception is hard to change.
  • jaxs1jaxs1 Member Posts: 2,697
    I wonder if the Genesis will fare well against an I35/M35 or M45?
    What about the Acura RL?
  • cdmuilecdmuile Member Posts: 152
    Ever heard of the Hyundai Pony? We travelled to Toronto in the mid eighties and rented a car to visit the Maritime Provinces. The only car they had was the Pony. It really didn't even look very well put together. We had it for over a week and first the window crank broke. Then the seat adjustment lever stopped working. Then, believe it or not, the muffler fell off. We went to the nearest Provential capital, went to the rental agency and demanded something else, anything! That was the end of my Hyundai experience until 2001 when we rented a car in Arizona. All they had was a Sonata. I said "no way am I taking a Hyundai". It was take it or walk. What a surprize. It was a pretty nice car. Not Toyota or Honda nice, but OK. Two years ago I went and bought the Azera. Those who aren't familiar with Hyundai will never realize how very far they've come in a mere twenty years. Bring on the Genesis!
  • ateixeiraateixeira Member Posts: 72,587
    Joe: funniest post I've read in a long time! Good one! :D

    I agree with the folks here that are saying people eventually forgive and forget.

    But...the Excel came out in 1986, IIRC. I was a senior in high school. So people who bought one as their first car are about 35-45 today, assuming they were in high school or in college when the Excel debuted.

    That's the prime age segment for a V8 luxury sedan.

    (Boy I feel old right now!)

    Hyundai will have to aim at fairly young folks, and the question is can a 25-34 year old spring for a $40 grand Korean sedan? It might be a bit of a stretch.

    On their side, I recall Kia having the youngest demographic of any manufacturer, so any one of those owners looking to move up are a prime target customer for the Genesis.

    Then again, who says they will market it conventionally? By all appearances, they will play up the underdog role and the value card. That alone could work.
  • mattandimattandi Member Posts: 588
    My in-laws were in town this weekend. They have driven Audi's for many years. Currently an A6 wagon and an A8 sedan, both fine cars. These are the 4th and 5th Audi's they have purchased/owned since I have know them. All that to say they are very loyal Audi owners.

    They know we are looking right now, so we talked cars for a while. My wife mentioned the Hyundai/Kia products we have looked at and are considering. My FIL asked if they were made in Japan, then he corrected himself to Korea. He said that probably means a pretty good price point. We said yes they are. He was vaguely familiar and mentioned he had heard of the long warranty. My wife said how impressed we were with them, how some friends are happy with them, and how genuinely surprised we were with the Azera we rented last summer. Summed up that they were quite nice, how comfortable she felt at the dealer, and that we might seriously consider one.

    Then he commented, not to belittle or condescend, just thinking aloud, "Well, I would never buy one, but I'm sure they are just fine for someone."

    No, Hyundai will not "steal away" many if any current premium/luxo owners. But they just might be able to cultivate and carve out their own nitch. If they keep correcting earlier snafus, building a more reliable car, and improving on their customer service, I think they could be quite successful in the long term.
  • iluvmysephia1iluvmysephia1 Member Posts: 7,709
    6 automaker in the world. I do believe that this new Genesis sedan will only help lift them closer to the number 5 in the world spot. I have read about the new RWD Genesis Coupe and seen the pictures and if you think the Hyundai Tiburon is sporty looking take a gander at this new Genesis Coupe. And it is said to start at around $19,995 for the 5-speed.

    Wow, the Genesis Coupe is sharp looking! And with the Long-Haul Warranty that would be a good price and great value. I wonder how much the production Genesis Coupe will look like the great looking concept car.

    2021 Kia Soul LX 6-speed stick

  • joe97joe97 Member Posts: 2,248
    On that, I wonder if the divorce between Chrysler and Mercedes will unseat DCX's then fifth spot prior to the separation and allow Hyundai/Kia to move up to fifth. GM and Toyota will of course fight it out for first worldwide, followed by VW and Ford (or is it the other way around?).
  • iluvmysephia1iluvmysephia1 Member Posts: 7,709
    is VW up that high(4th place)worldwide. I don't pay attention to anything but the top two spots(GM and Toyota)and then the 5th and 6th(DC and Hyundai/Kia). Anyone have all six in order right off the top of their head? The split between DC and Mercedes does seem like it might open up the No.5 spot to Hyundai/Kia, agreed, joe97.

    joe97, are you still excited about the Genesis from Hyundai? The sedan and/or the Coupe? Was the Genesis sedan offered at the NAIAS the same one that Hyundai will sell in the States?

    2021 Kia Soul LX 6-speed stick

  • joe97joe97 Member Posts: 2,248
    VW has a big market share in Europe and China.

    Am I still excited? Of course I am :) I have the coupe at heart but the sedan is probably more realistic for me as a daily driver ;)

    There were two different Genesis at NAIAS, actually. One with the waterfall grille design and without the H emblem (the same one as in the press kit and at the press conference); also down on the floor, a mesh grille design with the H logo. I prefer the more aggressive waterfall design personally. I think (although don't quote me on it) Hyundai is leaning toward the waterfall design.
  • cdmuilecdmuile Member Posts: 152
    The waterfall is definitely the better looking of the two. Very classy. About time someone varied the vertical, horizontal and mesh grills themes. They're getting old.
  • bobadbobad Member Posts: 1,587
    What a waste! Hate it when that happens! :cry:
  • ateixeiraateixeira Member Posts: 72,587
    What were the results, though?

    In the frontal one, the A-pillar bent out of shape a little. Better vehicles manage not to do that.

    But what matters is the impact on the passengers. Did they rate it? Or were those internal tests?
  • bobadbobad Member Posts: 1,587
    In the frontal one, the A-pillar bent out of shape a little. Better vehicles manage not to do that.
    But what matters is the impact on the passengers. Did they rate it? Or were those internal tests?


    You're correct that a bent A pillar doesn't affect the passengers. The entire front of the car is sacrificial. They're looking mostly for cabin intrusion and G forces. If the crumple zone is too stiff, the G forces spike too high. If the crumple zone is too soft, it can result in cabin intrusion. The proof of the pudding is what you find inside the cabin, especially around the brake and accelerator pedal areas. It may look a lot better or worse outside than it does inside where it counts.

    That said, it looks like the driver's feet and knees are pretty safe. If that was a 1970's or earlier car, I bet it would likely be fatal.
  • 4bearhug4bearhug Member Posts: 52
    Then he commented, not to belittle or condescend, just thinking aloud, "Well, I would never buy one, but I'm sure they are just fine for someone."

    I think that your FIL was clearly communicating that he didn't approve of your choice in vehicles, but that he couldn't come right out and say it. He had to drop a little hint that the vehicle was somehow below his status level and should be below yours.

    I got that same message from my father when I bought an Acura RL about 10 years ago. For people in my fathers generation who lived through WWII, they just can't get past the thought of supporting a company from Japan. The irony of my experience was the fact that 3 years ago my Dad bought a Saturn Vue because it had a Honda engine in it. He wanted the quality of the Honda engine without having to own the car. He finally came around last year when he bought a Nissan Murano. I never thought I would see the day that my Dad would own a Japanese vehicle.

    I think your FIL might come around too. I do know that the German bias runs deep among some people.
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