Is There Room in the Luxury Market for Hyundai?

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Comments

  • steverstever Guest Posts: 52,454
    I get frustrated by people forming opinions of cars on paper.

    What's paper? ;)

    Mini whatever class, if it sells some copies, it's going to be taking sales away from other brands.

    Then the question becomes - are they making S-Class conquest sales or hurting Avalon sales?
  • fintailfintail Member Posts: 58,498
    edited May 2010
    I don't know if canyons and cars are apples to apples...I can't think of a car I loathed on paper than I liked in person. If anything, it might be the other way around...things like the Amanti (more great HyunKia styling) IMO look worse in person than on paper. I just think the "mini S-class" line was amusing and a little hard to believe.
  • backybacky Member Posts: 18,949
    edited May 2010
    I've seen the Equus in person, and I thought it looked better up close than on paper. Especially the interior--it's hard to judge the "richness" of an interior via a photo on a computer screen.

    As for folks who think the grille is ugly--I think you're wasting some valuable use of your Giant Nit-Pick. Much better used on Acura--ANY Acura. :P
  • lemkolemko Member Posts: 15,261
    The Equus looks more like an S-Class depending on how much you drink or how much time you spend at sea.
  • fintailfintail Member Posts: 58,498
    They do both have wheels, doors, shiny grilles, etc. I guess if that's all a person notices...
  • j2jj2j Member Posts: 147
    edited May 2010
    "For the last freakin time, it can outsell the M because IT COSTS A HELL OF A LOT LESS THAN A M, GS, RL, A6, 5, and E! There are more people who can afford a $33-42k dollar Genesis, then a $48-65k dollar M, etc. Its just simple economics, especially in a recession when many more people who could have afforded a M, GS, 5 or E class, are on a budget now and cannot!"

    ******

    Uhh, so why didn't the M outsell the more expensive E Class and 5 Series, esp. during the height of the recession?

    The new E Class has been quite the success for Mercedes; otoh, sales of the new M have, thus far, been disappointing (despite already heavy discounting by Infiniti) and there's a good chance that the Genesis, going into its 3rd year, will outsell the new M this year.
  • bobadbobad Member Posts: 1,587
    (despite already heavy discounting by Infiniti) and there's a good chance that the Genesis, going into its 3rd year, will outsell the new M this year.

    I've heard that discounts are do deep on the M, that prices actually overlap Genesis. Man, that's a steal if it's true!
  • carstrykecarstryke Member Posts: 168
    aww shucks .....they dropped the very stylish hood ornament :D The thing that drives me insane about this car (besides the poorly designed rims) is the dual badging on the grille/hood
  • carstrykecarstryke Member Posts: 168
    Im not comparing the Taurus to the Genny/Equus but you can't deny it is the perfect example of a nicely designed/looking vehicle that bombed because of the price/identity. It is proof that people don't wanna spend $$$$ based on vehicle identity alone. I think that the Genny is kinda the top level they should and can go with the Hyundai brand.
  • tjc78tjc78 Member Posts: 17,058
    it is the perfect example of a nicely designed/looking vehicle that bombed because of the price/identity

    Are you speaking of the new redesigned Taurus? A little early to say it bombed. I am already seeing more of those than the Genesis here in southern NJ.

    2025 Ram 1500 Laramie 4x4 / 2023 Mercedes EQE 350 4Matic / 2022 Icon I6L Golf Cart

  • backybacky Member Posts: 18,949
    Also not one of the nicer-looking cars IMO, unless you like the "slab-sided sedan on steroids" look.

    One problem with the new Taurus is that the name is associated, for a long period of time, with a reasonably-priced mid-sized family sedan. It's as if Honda were to bulk up the Accord and charge $5-10k more for it, and have folks expect that it would sell in the same numbers as before. Not really a good parallel to the Genesis.
  • tjc78tjc78 Member Posts: 17,058
    Also not one of the nicer-looking cars IMO

    I don't mind it. Its head and shoulders above the previous version, and the 500 before it.

    Not really a good parallel to the Genesis.

    I know we disagree on this, however, I believe the Taurus to be a competitor to the Genesis due to them both being large cars in a similar price range. Having said that, the events leading to the current Taurus are quite different than the Genesis. Ford is trying to bring back the name of a vehicle that was a "game changer" 25 years ago and Hyundai introduced the Genesis to be a "game changer"

    IMO neither is setting the world on fire.

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  • backybacky Member Posts: 18,949
    edited May 2010
    Well, if you are looking for sales volume, there's always the Camry, Fusion, Sonata, Corolla etc.

    If the Genesis isn't a "game changer", I don't know what is. Its impact far exceeds the sales numbers. It's caused many buyers (you, included?) to look at Hyundai in a new light. That makes it a game-changer.
  • tjc78tjc78 Member Posts: 17,058
    edited May 2010
    I never said the Genesis wasn't a "game changer" I just don't think it is selling all that well. I actually see about 2 coupes for every sedan in my neck of the woods. Hyundai was starting to look up way before the Genesis, the Azera when it first came out made me take notice. I shopped it before I got my 06 Avalon. I preferred the Avalon but for the money the Azera was/is a heck of a car. We discussed the heck out of this a few years back on another forum here.

    If Hyundai's sole purpose for the Genesis and now Equus was brand recognition, I think it was an awful big waste of resources.

    2025 Ram 1500 Laramie 4x4 / 2023 Mercedes EQE 350 4Matic / 2022 Icon I6L Golf Cart

  • backybacky Member Posts: 18,949
    What you said is contradictory, or at least confusing. First you said Hyundai introduced the Genesis to be a game changer. Then you said it's not setting the world on fire--and you equate that to sales numbers.

    If Hyundai introduced the Genesis first and foremost to be a game-changer, and you agree it has done that, what does it matter if it's not outselling some other cars such as the ES and the 5 Series? It has accomplished its mission. And in the process has sales numbers comparable to if not better than competitors such as the M and GS (yes, yes, I know YOU don't see these cars as competitors, but many others do).

    Also, the US is not the only market for the Genesis. So Hyundai has been able to uplift its brand with the Genesis while selling a good number of $30-40k cars.

    I have yet to see a Genesis coupe on the road, but I do see Genesis sedans. I did see a sales breakdown on the Genesis awhile back and it showed about a 2:1 ratio of sedans to coupes. I think Hyundai should break these numbers out--but then again, they are using the same practice followed by other automakers such as Toyota, Honda, and Nissan.
  • tjc78tjc78 Member Posts: 17,058
    I feel it is a game changer in the amount of quality, and content one gets for the price as well as it being Hyundai's first entry into a higher price point vehicle.

    what does it matter if it's not outselling some other cars such as the ES and the 5 Series?

    Maybe, none. Its just my opinion based on sales #s its not doing that great. I would think at its price point it could at least come close to ES's sales #s. Perhaps, one thing that holds it back is the fact that its RWD only and in some parts of the country folks won't buy a RWD vehicles due to harsh winters?

    I think Hyundai should break these numbers out

    It would be nice. Like I said I see more coupes than sedans here but that could be purely coincidence. In any event I don't think I even see more than 2-3 coupes a week and maybe one sedan (aside from the one in driveway of course ;) ). I'll tell you what I do see though is plenty of new Sonatas..... thats another story though.

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  • backybacky Member Posts: 18,949
    I think FWD sedans like the ES, Avalon, and Maxima do have a bigger potential market than RWD sedans, especially RWD V8 sedans. I expect an AWD Genesis will sell more copies in the Snow Belt. Although it hasn't helped the M all that much, has it? RWD with winter tires is no problem in winter, IMO (or even with all-season tires if one lives in a city with good plowing crews, as I do), but I know a lot of people think they must have AWD/4WD in any kind of snow.
  • tjc78tjc78 Member Posts: 17,058
    edited May 2010
    Yeah the public is brainwashed on FWD. The RWD layout (of the Gen) is great especially on hard acceleration and taking curves/off-ramps. The manufacturers have done a good job reducing torque steer on higher powered FWD sedans but its still there to some degree (depends on the road at times).

    Although it hasn't helped the M all that much, has it?

    I think the latest redesign of the M is hurting it enough. I haven't seen it in person, but I am not a fan. I loved the looks of the prior generation... just a little above the budget (at least new). I have never driven or ridden in one though. I may not even like the ride, as I am sure the suspension is probably firmer than the Genesis.

    2025 Ram 1500 Laramie 4x4 / 2023 Mercedes EQE 350 4Matic / 2022 Icon I6L Golf Cart

  • jimbresjimbres Member Posts: 2,025
    Although it hasn't helped the M all that much, has it?

    Not sure what you mean by this. I live in a suburb of NYC, & I see a great many Infiniti Ms, 90+ percent of which are the AWD variants.
  • backybacky Member Posts: 18,949
    I meant total sales. Only 4341 for the first four months of 2010, and the 2011 M started selling in March. For comparison, Genesis sales through April were 7842, which includes the coupe but still looks stronger than the M. On the plus side, for the same period in 2009 M sales were only 3610, so it looks like the new design is having some impact on sales. But consider that even with AWD available last year, the M sales were far below those of the Genesis.

    So I don't see a big advantage for the M in sales because it offers AWD, compared to a car like the Genesis that is RWD only. Or are you saying that if the M didn't offer AWD, its sales would have been about 90% less than they were? Or that if the Genesis offered AWD, you think its sales (for the sedan) would nearly double?
  • jimbresjimbres Member Posts: 2,025
    So I don't see a big advantage for the M in sales because it offers AWD, compared to a car like the Genesis that is RWD only.

    If the sales numbers were broken down by region, you would see an entirely different picture. Sunbelt buyers almost invariably pick RWD - I've noticed this when I'm in Florida - but given a choice between AWD & RWD, snowbelt buyers will go for AWD 19 times out of 20. This applies not only to Infiniti, but also to BMW, Mercedes, the Caddy CTS & those Lexus models that offer AWD.

    Keep in mind that I genuinely like the Genesis. There's no question in my mind that it's as much a luxury car as anything else in its price range. But that doesn't change the fact that I can count on the fingers of one hand the number of Genesis sedans that I've seen in my import-friendly NYC suburb since it was introduced last year. The only sensible explanation that I can come up with is Hyundai's failure to offer AWD.

    Do you have a better explanation?
  • backybacky Member Posts: 18,949
    That's one explanation. I think there's many others. "Import-friendly" is not the same as "Hyundai-friendly", for example. If you live anywhere in or near Westchester County, for instance, I would not consider that a Hyundai-friendly area.

    What I am trying to say is, AWD is not a panacea to sales. The M didn't do very well in recent years sales-wise with it, and isn't doing any better than the RWD Genesis now, even with an all-new design. So I think there's many other factors that come into play. I think Hyundai would sell more Genesis sedans if it offered AWD, at a reasonable uptick in price. How many more, I have no idea. But if the pattern is anything like what you are seeing with the M, then we might see a 90% bump in sales for the Genesis in places like NYC when it offers AWD. You think?
  • jimbresjimbres Member Posts: 2,025
    FWIW, I live on the North Shore of Long Island - northwestern Suffolk County, to be specific - which is similar demographically to lower Westchester. In any case, all I can tell you is what I can see for myself: given a choice between RWD & AWD versions of any given luxury or near-luxury sedan (BMW, Mercedes, Infiniti, Lexus, Cadillac, etc.), buyers around here will pick the AWD variant at least 9 times out of 10.

    So it stands to reason that any manufacturer that wants to play in this market segment has to offer AWD from day 1 or risk being a sales footnote in the Northern states. I don't think that's a terribly controversial statement, nor should it be taken as a knock against the basic goodness of the Genesis itself. The only people who should be offended are Hyundai's marketing mavens, who should have anticipated this. The trend toward AWD has been obvious since the late 90s, when Mercedes started rolling out 4-matic versions of its sedans, & the early 2000s, when BMW introduced the 1st xDrive 3 series.
  • backybacky Member Posts: 18,949
    edited May 2010
    The only people who should be offended are Hyundai's marketing mavens, who should have anticipated this.

    How did you know they didn't? We've discussed before how AWD adds complexity to a car (and cost). The Genesis was already a new design with an all-new V8. Maybe Hyundai's marketing mavens figured it was more important for the first-gen Genesis to be rock-solid mechanically, to help maintain Hyundai's improved reliability reputation, than to offer AWD from Day One. What if this first-ever (in the US) Hyundai luxury car had serious reliability problems? How would that have affected the primary goal of the Genesis--to raise the perception of the Hyundai brand? I don't think it would have helped at all, do you? Also consider Hyundai has very little (if any?) experience in AWD sedans. Maybe the first-gen Genesis wasn't the best time for Hyundai to take the first crack at it?

    Funny though how the trend towards AWD has been so obvious since the late '90s, yet when Infiniti released the first M it didn't have AWD. That came later. There's much said here about how Hyundai should be following the lead of the J3 in how they approached the luxury market. But not in this case, eh? I also see posts re Hyundai moving too fast. But not in this case, eh? You don't think they moved fast enough.
  • jimbresjimbres Member Posts: 2,025
    What if this first-ever (in the US) Hyundai luxury car had serious reliability problems? How would that have affected the primary goal of the Genesis--to raise the perception of the Hyundai brand?

    Given that AWD is no longer bleeding-edge technology (& hasn't been for years), why do you think that offering it would have been risky from a reliability perspective?

    Funny though how the trend towards AWD has been so obvious since the late '90s, yet when Infiniti released the first M it didn't have AWD. That came later.

    Not much later. The 1st generation M45, introduced to the North American market in 2003, didn't have it (not surprising - it was just a rebadged Nissan Gloria that was rushed to market to give Infiniti an answer to the Lexus GS), but the 2nd generation M35, introduced just 2 years later, did offer optional AWD - fully 3 years before Hyundai rolled out the Genesis.

    Unfortunately, it looks as if prospective Genesis buyers will have to wait for more than 2 years for AWD. According to Hyundai's U.S. head honcho, AWD will be an option on the 2nd generation Genesis, which we won't see until 2014. (Sorry, but I can't find a link for this.)
  • bobadbobad Member Posts: 1,587
    Given that AWD is no longer bleeding-edge technology (& hasn't been for years), why do you think that offering it would have been risky from a reliability perspective?
    jimbres,

    I have a feeling that Hyundai didn't have the time, resources, or confidence to make their 1st Genesis offering AWD. When you think about all the new cars rolling out the past 3 years, I bet their design team was stretched thin. Speeding up engineering is more than adding new wings on the building and hiring more engineers. Things have to grow slowly to be controllable. Even a top notch manager can lose control of a growing team of eager engineers. Sure, I agree with you they they lost sales in the snow belt. But I also agree with their cautious approach. I'm almost positive I read somewhere (possibly from Krafcik) that AWD was in the works.
  • jimbresjimbres Member Posts: 2,025
    I have a feeling that Hyundai didn't have the time, resources, or confidence to make their 1st Genesis offering AWD. When you think about all the new cars rolling out the past 3 years, I bet their design team was stretched thin.

    Good point, Bobad. I must admit that I hadn't thought of it that way.
  • backybacky Member Posts: 18,949
    Unfortunately, it looks as if prospective Genesis buyers will have to wait for more than 2 years for AWD. According to Hyundai's U.S. head honcho, AWD will be an option on the 2nd generation Genesis, which we won't see until 2014.

    :confuse: Why do you think the next-gen Genesis won't be out until six years after the original debuted (2008 to 2014 = 6 years)? That is a long time between generations, given how fast Hyundai is updating other models. I have a feeling we'll see the next-generation Genesis before 2014.
  • jimbresjimbres Member Posts: 2,025
    I have a feeling we'll see the next-generation Genesis before 2014.

    I hope that you're right about this...
  • fintailfintail Member Posts: 58,498
    Especially as the E60 5er it apes is already an old model

    Oops, I didn't say that :shades:
  • wolverinejoe80wolverinejoe80 Member Posts: 337
    i think sedan sells more. gen coupe is getting hammered because it's going against camaro and mustang. everyone in gencoupe.com agrees. gen coupe meets are everywhere and so far gen coupe owners rarely see another gen coupes. we waive each other whenever we spot coupes.

    gen coupe is still very very rare. i live in chicago, i hardly ever see the coupe.
  • captain2captain2 Member Posts: 3,971
    think sedan sells more. gen coupe is getting hammered because it's going against camaro and mustang
    IMO, Hyundai needs to identify the market it wishes to target with the Coupe.
    As it is it is nothing more than a credible attempt at a rice rocket and NOT anything that should appeal to the hard core pony car enthusiast that really demands the gutteral sensations of the big ole V8.
    If they really want to target the rice rockets like Acura has done so well over the years than they probably need to upgrade it, get rid of the Hyundai nameplate, raise its price a bit, and lastly of course sell it at those now mythical 'Genesis' dealers.
    More properly it would seem logical to go ahead and put that big V8 in the Coupe given that the Hyundai name and the Hyundai dealers are about on the same level as Chevy and Ford dealers and at comparable prices. The pony car market is not insignificant and I imagine that the pony car buyer is going to be influenced more by raw performance (and content) than he would be by something like brand rep.
    This, of course, then leaves the Genesis 'brand' dedicated to more luxurious ( and pricier) vehicles - which is likely best if any room is to ever be found....
  • backybacky Member Posts: 18,949
    What a great summary of many of the points that have been made in this discussion over the past several months, plus a lot of other tidbits e.g. the Genesis' rankings in sales in its segment: 4th out of 18 for the sedan.
  • fintailfintail Member Posts: 58,498
    edited June 2010
    How much was paid for that sales pitch? :P

    That early Genesis prototype thing is hilarious looking, like the love child of a BMW and a Subaru. I'd like to know which "European design house" crafted that headache.

    Equus is still awkward at best. That being said, it will sell a few...even the Phaeton sold a few. A few outside of the home market and the US, maybe not so likely.
  • bobadbobad Member Posts: 1,587
    I like this approach:

    " We'll come and pick up the Equus at your home or business and leave behind a service loan car for you to drive while we perform the work. And when we're done, we'll deliver your Equus back to you. That's pretty special, and unique in our industry. We call it Service Valet. With Equus, it's not about putting you at the front of the service line, it's about eliminating the line entirely and demonstrating extraordinary respect for your time."

    No service department could ever compete with my own home.
  • backybacky Member Posts: 18,949
    edited June 2010
    Demonstrates again that innovation is a key to Hyundai's strategy... not blindly following what others have done before.
  • bobadbobad Member Posts: 1,587
    Oh man, you beat me to the punch on that one!

    The last place on Earth I want to go is a car dealership, regardless of what it looks like. Ideally, I want to go there once every 6-8 years, just to buy the car. When I must go, the ideal duration for my visit would be under a minute. The dealership coming to me is even better, but ideally, I never want to see them again after my purchase.

    My dealership is 55 miles away, so it would be interesting to know if they would shuttle me a loaner that far. :D
  • backybacky Member Posts: 18,949
    edited June 2010
    Yes, that would be interesting to find out. And I'm assuming that they would provide a tow truck if the car is not drivable.

    Going to my local Hyundai dealer for service is not a big deal, as they are only a few miles from my home, and I can drop my car off on my way home from the gym and either wait for it (surf the Web, look at the new cars etc.) while the work is done, e.g. oil change, or they'll drive me home. They have offered to pick me up at my home to get my car, but it's no problem having my wife or son take me over there, it's five minutes away. But just think... this is the kind of service the dealer provides for ANY car they service, including my old Elantra and my Sonata (taking it in for an oil change next week, btw). So why do I care if the dealership is in a rather old building and the waiting area and show floor are kinda small? Well... I don't. I do get good service there, and that is what is important to me.
  • bobadbobad Member Posts: 1,587
    What a great summary of many of the points that have been made in this discussion over the past several months, plus a lot of other tidbits e.g. the Genesis' rankings in sales in its segment: 4th out of 18 for the sedan.

    The same thought immediately occurred to me. There's a remarkable similarity between Krafcik's comments and some of our own. I think Krafcik has been reading this thread, and taking notes!
  • backybacky Member Posts: 18,949
    Or maybe some of the folks posting here had a pretty accurate read on Hyundai's strategy? ;) Or maybe some of both.
  • fintailfintail Member Posts: 58,498
    I'd be interested to see what they give for a loaner too. It's a cool plan though, be interesting to see if the Germans will follow suit. I know they have highline loaners, at least at the dealers here...but I think you have to pick it up yourself.
  • oldcemoldcem Member Posts: 309
    Not much of an innovation - Several of the luxury car dealers here have been doing it for years.

    Regards:
    Oldengineer
  • backybacky Member Posts: 18,949
    Which luxury car manufacturers do this kind of pick-up-and-deliver service as a general rule--with all of their dealerships? I'm not aware of any.
  • backybacky Member Posts: 18,949
    Several other published reports have stated the loaners will be an Equus or Genesis.

    I know, I know, you want links, or it didn't happen... try "Equus loaner Genesis" in google and see what you get.
  • steverstever Guest Posts: 52,454
    edited June 2010
    I've heard that too (for some reason Jaguar sticks in my mind).

    But you're right, it's most likely just a dealer by dealer thing.
  • smarty666smarty666 Member Posts: 1,503
    I of course can't speak for all dealerships since its impossible to know every single one of them in this country, but the 5 local Lexus dealers to where I live in NJ/PA all offer pick-up-and deliver service. My local Cadillac dealership also offers pick-up-and-deliver service!

    But of course, this doesn't mean much because I can't really answer your question backy if all Lexus and Cadillac dealerships do this, but all my local ones do so ???
  • fintailfintail Member Posts: 58,498
    edited June 2010
    Nah, I just don't believe this invisible tuned car that I can apparently buy without a problem :shades:

    When it comes to this loaner plan, I can believe it...I have to believe individual dealers have done this kind of thing in the past, and for those who like to have their butts kissed, it will be an attraction. Unless of course, that loaner car is a roll up window Accent. I wonder what the sales costs will be for the Equus, and if it will be sold at a loss to attract clients as was the original LS. Although with the Equus, maybe the design costs are already absorbed.

    But thanks for being offended that someone dares to question the swoopy H anyway ;)
  • backybacky Member Posts: 18,949
    edited June 2010
    Who is offended? :confuse: Maybe just a little mystified that even when provided the exact search phrase to use, you are incapable of executing a google search to verify that the loaners for the Equus will be another Equus, or a Genesis--and not an Accent with roll-down windows. :sick:

    ... and for those who like to have their butts kissed, it will be an attraction.

    But isn't that exactly the position raised by some here, that Hyundai doesn't "kiss enough butts" currently, with fancy dealerships, service folks in white lab coats, cappuccino machines in the waiting area etc., to be a success in the luxury market? So they are taking what Mr. Obama would call an "unprecedented" step of offering pick-up-and-deliver service with a free luxury loaner for the Equus, for all dealerships.

    Since the Equus is based on the Genesis platform, the engineering costs shouldn't be too big. Maybe the marketing costs will be higher than the engineering costs.
  • backybacky Member Posts: 18,949
    If Jaguar offers this kind of pick-up-and-deliver service, they are keeping it a secret--no mention of it on their web site. I would think they'd make a big deal out of a program like that, if it was a general Jaguar service policy and not something offered by only some dealers.
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