Is There Room in the Luxury Market for Hyundai?

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Comments

  • bobadbobad Member Posts: 1,587
    It's great you are happy with Hyundai as a brand, but not everybody wants to cut corners, and some are more than willing to shell out for it.

    I have never said I am "happy with Hyundai as a brand". Their image certainly has a way to go, as I have said repeatedly. That's because buyers are slow to notice improvements, not a reflection on the cars.

    I am happy with their cars. Their cars measure up very well to anything in their price class. Hyundai does not cut corners. In fact, quite the opposite. I challenge you to find any car the same price as the Sonata, Azera, Santa Fe, Veracruz, and Genesis respectively that match their quality and equipment. I'll be waiting patiently. ;)
  • kdshapirokdshapiro Member Posts: 5,751
    I agree the Sonota is cheaper than let's say the Accord, but not necessarily better.
  • bobadbobad Member Posts: 1,587
    That's a pretty good temporary solution and it should work for the meantime. However, what I am focusing is the long term strategy. I personally don't think the "brand within brand" strategy to go too far.

    Agreed the new name and dealer network would not be necessary. I like Joe97 and backy's solution with just a sight modification.

    Premium badges... Azera, Veracruz, and Genesis for now, would only be sold by the most excellent dealerships. If the lesser dealerships want to sell the premium cars, they can upgrade any time to qualify. I would like that policy because, unlike separate dealerships, the top notch service would trickle down, and would benefit all Hyundai owners.

    I believe if Toyota and Honda has marketed Lexus and Accura directly under their names, there would be little if any difference in sales. The cars made the name, the name didn't make the cars.

    After all, it is still called a Hyundai.

    You just can't make that leap into the present, can you?

    Like I've said, it takes money to make money. The return "usually" is directly proportional to the investment.

    You seem to be under the impression that Hyundai is a mom and pop operation. They are quite capable of making huge investments, if they believed it to be necessary.
  • ykangykang Member Posts: 88
    Because you don't see it, doesn't mean there is a difference.

    Are you serious?

    I guarantee that there is no difference. The only differnce is name and price. ;)
  • bobadbobad Member Posts: 1,587
    I agree the Sonota is cheaper than let's say the Accord, but not necessarily better.

    Since the Accord costs way more than the Sonata, it should be better. A lot better. And is should be a lot better equipped.

    In fact, it shouldn't even be fair to compare the 2 cars. :blush:
  • backybacky Member Posts: 18,949
    When the base Genesis debuts, we can compare it to the Accord EX V6, since they will be about the same price. THAT will be an interesting comparison. ;)
  • kdshapirokdshapiro Member Posts: 5,751
    "I guarantee that there is no difference. The only differnce is name and price. ;) "

    I don't take blanket guarantees like this seriously. :)
  • kdshapirokdshapiro Member Posts: 5,751
    "And is should be a lot better equipped."

    According to who? That is the same exact arguement G35/7 fans throw at BMW. There is much more than features/$$$.

    I agree the two cars can't be compared, when Sonota comes up in refinement to the new Accord, I'll compare them. :surprise

    BTW...seems to be a thinly veiled Honda bash? :confuse
  • bobadbobad Member Posts: 1,587
    When the base Genesis debuts, we can compare it to the Accord EX V6, since they will be about the same price. THAT will be an interesting comparison.

    I think the Accord would come out a little short in interior room. :blush:
  • bobadbobad Member Posts: 1,587
    BTW...seems to be a thinly veiled Honda bash? :confuse

    You will never catch me bashing modern Honda, Toyota, or Nissan cars. I could be quite happy to own any of them.
  • louisweilouiswei Member Posts: 3,715
    The cars made the name, the name didn't make the cars.

    I guess I see why we don't agree on this Hyundai luxury brand topic. I personally DO NOT think Lexus and Acura will be equally successful if Toyota and Honda have marketed with the same dealership network. Yes you are right that the cars made the brand but that's just part one. You forgot about part two which is: after the cars made the brand then the brand made the cars. That's why I said the "brand within brand" solution is good for short term but long term wise, Hyundai needs a separate dealer network.

    You just can't make that leap into the present, can you?

    Oh trust me, I believe Hyundai is an up and comer and IMO it is at the same level with Toyota and Honda on just about everything except reputation. However, I personally don't see that one day Hyundai will be competing in the luxury market with BMW, MB and Lexus. Mark my words, that ain't gonna happen, not with the Hyundai name/brand.

    if they believed it to be necessary

    Exactly, except what they believe in is not always right.
  • bobadbobad Member Posts: 1,587
    However, I personally don't see that one day Hyundai will be competing in the luxury market with BMW, MB and Lexus.

    I don't see any signs that Hyundai wants to or needs to enter the luxury market, nor do I care.

    The Genesis will be interesting. I don't think it will be accepted by the general public as a true luxury badge, but I may be wrong. If word gets out they are reliable and trendy, the floodgates could open. I say it probably won't happen. I think the Genesis will be relagated to a few savvy car buyers that take advantage of a stunningly good car at a stunningly low price.
  • louisweilouiswei Member Posts: 3,715
    I don't see any signs that Hyundai wants to or needs to enter the luxury market, nor do I care.

    Maybe you need to check the title of this board again...

    Last time I checked, it was "Is There Room in the Luxury Market for Hyundai?" If you don't really care then I think you are in the wrong place.

    Seriously guys, this is not a "Hyundai fan club" nor "Let's support Hyundai" board. This is the place for car enthusiasts to talk about if Hyundai can succeed in the highly competitive luxury market. Not everyone here voicing a different view is "bashing on Hyundai". If I am Hyundai executives, I would frequent this board and check out all the different opinions.
  • mpuzachmpuzach Member Posts: 635
    "When the base Genesis debuts, we can compare it to the Accord EX V6, since they will be about the same price."

    Maybe even to the TL.
  • backybacky Member Posts: 18,949
    I don't know if interior room will be the issue--the Accord is after all rated as a full-sized car by the EPA now. But in other ways... well, let's put it this way: given that Edmunds.com rated a like-priced Sonata over the Accord (previous-generation Accord), you have to wonder how the Genesis will fare against a like-priced Accord. :)
  • rockyleerockylee Member Posts: 14,017
    You know what I mean. ;) The bottom line is this car (Genesis) is a reverse engineered marvel. :shades:

    -Rocky
  • pinehurst2pinehurst2 Member Posts: 13
    Since when is Edmunds.com the definitive authority on cars?
  • bobadbobad Member Posts: 1,587
    It took me a good while, but I now think I understand why so many luxury car owners get upset on this thread. It's not so much they dislike Hyundai cars. It's the comparison to their own car they resent.

    Lexus and Accura owners need not fear Hyundai. Hyundai isn't doing anything that will impact the Lexus and Accura negatively. The competition, what little there is, will only cause improvement in their already wonderful cars. (DrFill will set me straight if I'm wrong.)

    Toyota and Honda are a different story. I think Hyundai will eventually take a fair sized bite out of their immense market. If and then that happens, maybe Hyundai's will have an opportunity to expand their premium/luxury line.
  • backybacky Member Posts: 18,949
    Who called them a definitive authority on cars? But if you want to think of them in that way, OK by me.
  • kdshapirokdshapiro Member Posts: 5,751
    "It's not so much they dislike Hyundai cars. It's the comparison to their own car they resent."

    I don't think that it is at all. It's the disbelief a car company can step into a space it took years for other manufacturers to develop. That fact that a car company can produce a nice car with leather seats does not mean it's the equivalent of another car with leather seats costing more $$$. Sure there are a few who will readily admit to that. But that doesn't make it fact. To wit, the fact the Genesis is already beating the 5 series at it's own game is laughable at best.
  • goodegggoodegg Member Posts: 905
    I think Hyundai will eventually take a fair sized bite out of their immense market.

    I thought that was supposed to have happened already. That warning shot Sonata fired across the bow of the Camcord only served to push Camcord sales up. And the Sonata sales have totally stagnated at less than Malibu levels. The Veracruz was supposed to have opened the floodgates of buyers, but in a drought year I guess 1500 a month is a flood.

    Whatever explanation you want to posit about the capacity of the plant, the upcoming refresh, global warming, WMDs - whatever - one day Hyundai will have to actually sell cars at a quicker pace then they are now to take a bite outta Honda or Toyota.

    Yea Hyundai builds a decent vehicle, but masses of people buying them just isn't happening.

    Why? Who knows? Who cares?
  • mpuzachmpuzach Member Posts: 635
    "DrFill will set me straight if I'm wrong."

    As a matter of fact, he'll set you straight even if you're not wrong!
  • ykangykang Member Posts: 88
    I don't take blanket guarantees like this seriously.

    I don't care what you think. I'm just telling the truth.
  • bobadbobad Member Posts: 1,587
    It's the disbelief a car company can step into a space it took years for other manufacturers to develop.

    You must recognize that Toyota took so long to develop their high quality because they had no idea what the American people wanted, and no decent vehicles to copy from. Hyundai, and all other manufacturers can and do study dozens of cars and take the best features from them. Manufactures would be nuts to develop everything on their own dime. This isn't a school test, and copying is fair and legal if no patents are infringed upon.

    Having said that, Hyundai does spend large sums on R&D. They have signifiant patents on manufacturing processes and active electronic stability control. Hyundai uses more robots (their own Hyundai robots) than any other manufacturer. Hyundai was the first manufacturer to offer electronic stability control as a standard feature across the board. Some base model Toyotas and Hondas still do not offer ESC as standard equipment. They will, thanks to Hyundai and government mandates.
  • kdshapirokdshapiro Member Posts: 5,751
    " don't care what you think. I'm just telling the truth"

    Ditto, my friend, ditto. Truth is is in the eyes of the beholder.
  • kdshapirokdshapiro Member Posts: 5,751
    "They will, thanks to Hyundai and government mandates."

    What? BMW was offering ESC in the '80s and has been offering ESC across the board for years. So Hyundai mandates will force Honda to offer ESC in every model? I don't think so.
  • joe97joe97 Member Posts: 2,248
    He was talking about mainstream makers. Just for the record, Hyundai was the first to make ESC/ESP standard on a car (Sonata) and a SUV (Tucson) among mainstream models. Others (most) followed suit.

    Hyundai didn't mandate anything, the governement is. Hyundai just started the trend, if anything ;)

    In other news, Strategic Vision 2007 Total Value Awards are out:

    http://www.strategicvision.com/press_release.php?pr=28
  • joe97joe97 Member Posts: 2,248
    An early sneak preview to the BH luxury RWD sedan?

    What is known, this will mark the first time Hyundai advertises during the Superbowl broadcast in th US.
  • goldsuvgoldsuv Member Posts: 51
    Yes, the Veracruz has a rear suspension similar to the BMW X5
    (multi-link) and the RX(also Camry,ES350) has a rear suspension similar to a 2000 Hyundai Accent (strut).
  • carguy58carguy58 Member Posts: 2,303
    "I thought that was supposed to have happened already. That warning shot Sonata fired across the bow of the Camcord only served to push Camcord sales up."

    What are you talking about? Accord sales have down for the past 5 years:

    2003: 397K
    2004: 387K I think
    2005: 369K
    2006: 354K

    Your right about the Camry though the 07 model is probably one of the best debut sellers for a new model in awhile selling 448K for 2006. Well the 07 Camry came out in March 2006 so there are some 2006 Camry's that were sold out of that 448K number.

    "And the Sonata sales have totally stagnated at less than Malibu levels."

    Malibu YTD: 90K I think the Detroit news said that that is the number that Chevy or GM for that matter has sold this year including rental fleets.

    Sonata YTD: 99K including rental fleets.
  • joe97joe97 Member Posts: 2,248
    Your right about the Camry though the 07 model is probably one of the best debut sellers for a new model in awhile selling 448K for 2006. Well the 07 Camry came out in March 2006 so there are some 2006 Camry's that were sold out of that 448K number.

    Also take into account the hybrid sales are combined with the total Camry figures, which did not go on sale until April 2006, so in YOY comparisons Toyota did not have any sales of the hybrid model in the first four months of April (well, 86 units). The Camry does report a 7% year YTD up-trend unadjusted, subtracting out the unbalanced hybrid sales YOY, the regular Camry is up slightly over 1% YTD.

    But, let's get back to topic before dwell too far offtopic :)
  • carguy58carguy58 Member Posts: 2,303
    "Mmmmm... maybe it's not moot. Think about the last 4 Hyundai releases. They really nailed the Sonata, Azera, Santa Fe, and Veracruz."

    The Azera is a quality car( I have sat in it once or twice) but its not a sales success even auto channel.com had a picture of the Azera when they had the headline of the article titled "when good cars don;t sell"(I think that was the title of the article.)The Azera is getting outsold by the likes of the Toyota Avalon and the Dodge Charger. I was shocked that is getting outsold by the Charger although not the Avalon. Hyundai has only sold 17K Azera's so far this year. In the article that I read from autochannel they said Azera sales are down from last year.

    They did nail it with the Santa Fe though I'll give you that given that it is a sales success.
  • joe97joe97 Member Posts: 2,248
    http://www.businessweek.com/autos/content/oct2007/bw20071018_561752.htm?campaign- - _id=rss_autos

    It was actually an article from BusinessWeek, titled, "when good cars sell badly", and here are the cars featured, in alpha order:

    Acura RL
    BMW 7 Series
    Cadillac STS
    Hyundai Azera
    Jaguar X-Type
    Kia Amanti
    Lincoln Town Car
    Mazda6
    Mercedes-Benz R-Class
    Nissan Quest
    Saab 9-5
    Subaru Tribeca
    Toyota Avalon
    Volkswagen Passat
    Volvo V70

    A lot of automakers represented; not just Hyundai and Toyota.
  • carguy58carguy58 Member Posts: 2,303
    "Mmmmm... maybe it's not moot. Think about the last 4 Hyundai releases. They really nailed the Sonata, Azera, Santa Fe, and Veracruz."

    No, if you are saying if you combine Hyundai and Kia brand sales last year in the US they did not outsell Honda/Acura, ,Nissan/Infinti or Dailmer.
  • joe97joe97 Member Posts: 2,248
    Worldwide.
  • carguy58carguy58 Member Posts: 2,303
    "P.S. I disagree that, for example, Lexus hadn't gained traction and wasn't taking customers from Americans and Germans before 2005. I think it happened well before that. With Acura and Infiniti also."

    Well Infinti really didn;t become a player in the luxury car game until the 2003 Infinti G35 came out than Infiniti became a player in the luxury car game in my opinion.
  • carguy58carguy58 Member Posts: 2,303
    "If there's any truth to the notion that a car maker's ability to compete in the luxury market can be accurately measured by sales figures and whether or not they meet their projections, then you can conclude that Maybach and Jaguar can't compete, either."

    I know Maybach is very volume here in the US but isn;t the Maybach brand aligned with Mercedes? As far as Jaguar goes their sales go down every year it seems in the US I mean even Saab outsells Jag in the Us and how many cars did Saab sell last year in the US? like 32K? I mean is that something that Jaguar should be proud of(in their small numbers of US sales yearly?)
  • carguy58carguy58 Member Posts: 2,303
    "What? It was obvious to me in 1974 they were in trouble."

    1974? Ah the Boomers were buying still loyal to their Domestic makes in the 80's and 90's. I mean the Domestics still had a 70% market share in the US for the year ending of 1997 going into January 1st, 1998. My parents are buy American people but I think my Mom may buy a Japanese branded car once her lease on her Pontiac is up.
  • carguy58carguy58 Member Posts: 2,303
    "I believe their cars are more cheaply made than Toyota's cars, and that is part of the reason they sell for "less" with the "same" equipment."

    Well I don;t think the Elantra, Azera, and Santa Fe are cheaply made and I have sat in those 3 cars yes.
  • carguy58carguy58 Member Posts: 2,303
    "I will eat crow. But it has to be by all accounts and not from motor trend. Has to be sales, wards engine awards, consensus from every car magazine and CR. Other than that I'm not biting."

    Well CR liked the Santa Fe as a matter fact it ranked only behind Toyota RAV 4 in CR's tests for that respective class. CR called the Santa Fe much improved from the last gen Santa Fe(01-06 model.) I believe the Hyundai Azera in CR tests only ranked 2nd to the Toyota Avalon in its respective class as well.
  • carguy58carguy58 Member Posts: 2,303
    "This obsession with Lexus will kill Hyundai, like it has done to Nissan."

    Nissan is obsssed with Lexus? Somebody forgot to send me that memo. How has now Nissan ever try to be Lexus? The cloest thing that Nissan ever made to a Lexus was like the 1997-2001 Infinti Q45.
  • carguy58carguy58 Member Posts: 2,303
    "That they lack total confidence in their engineering/quality control manufacturing departments to the tune of not offering their buyer's a decent Warranty."

    Toyota has a very good reputation for reliability(like them or not) that they don;t have to offer a 10 year warranty like Hyundai does. Hyundai had a very bad reputation so thats the reason why they had to offer the 10 year warranty in the first place and use the warranty to get people to step foot in a Hyundai showroom in the late 90's. I could never buy a Kia though because of bad reliability 10 year warranty or not.
  • carguy58carguy58 Member Posts: 2,303
    "Things like the economy affect Hyundai's U.S. sales and "I just want to make a totally safe" purchase people can continue to buy Honda's and Toyota's, oh sure they can."

    Hyundai does not have the reputation for good reliability that Honda and Toyota do.
  • xiajiaggxiajiagg Member Posts: 31
    Year to date, their sales are way down. Here's my take, (and you can disagree.)

    In the US and anywhere else, the sale point for Hyundai is 1. cheaper, or compete at price point; 2. longer warranty, a reality it has to deal with from their horrid history, and in my book, this doesn't register an endorsement to their product quality either! (Quite the opposite!!)

    Well, in China, hyundai doen't offer a longer warranty program, so it is essentially competing on price point. It is sold well in the past because they are cheaper than Japanese or German. Guess what now? The Chinese brands are poping up in every corner now and they are cheaper with better features (these are computer + software, aren't they?) This doesn't bold well for hyundai.

    As one of the poster said earlier, hyundai is doing a good job in reverse engineering. Well, it will help you to catch up the leader but only innovation will bring it to be a leader.

    Outside the car area, sony lcd actually uses samsung panel but it commends a premium over the samsung tv. Why so? Because side by side, a sony TV is better than the samsung's. Talking about innovation, koran makers still have a mountain to climb.

    (I suspect there're a few posters here are korean-related. I appologize if I offend you by any way, but I just speak of my opinion based on the facts I conceived. As an ordinary people, I am sincerely hoping one of this day, a korean company does commend a premium in the market place, they are just not there yet.)
  • joe97joe97 Member Posts: 2,248
    Just wanted to get a clarification from your post. You post is titled, "Maybe we can take a hint from Hyundai performance in Chinese markets" - that hint tells us ??
  • xiajiaggxiajiagg Member Posts: 31
    Hyundai sales are way down over there becuase its foundation i.e, competing on price point, is collapsed due to the abundant supply of even cheaper products. Can it be a prelude to other markets? Maybe, maybe not.

    Sorry, but I just don't see the success of a brand just because its product is cheaper, unless it is a retailer like warmart.
  • joe97joe97 Member Posts: 2,248
    I wouldn't call it collpased simply because most of the Chinese makers have drastically reduced prices to fend off competition from makers of other parts of the world. The top 5 YTD in China:

    1) SAIC-GM-Wuling
    2) FAW Volkswagen
    3) Shanghai GM
    4) Shanghai Volkswagen
    5) Chery

    Hyundai is in the top 10, still. VW has been the earliest and biggest entry in the beginning of the auto market, IIRC, and still has a significant share. Heck, when I was in Shanghai on business, 95% of the taxi fleet were VW Santana. :)

    I wouldn't draw too much correlation from the Chinese market to others (i.e. US). The Chinese market is in the very early stage, and it is too complex for a short analysis here. Plus, the topic is Hyundai in the luxury game, not how Hyundai is doing worldwide, saleswise (which can take on many meanings). Even then, Hyundai is doing great in many markets around the world.
  • i360i360 Member Posts: 74
    The 2007 Santa Fe also has a multi-link rear suspension.
  • louisweilouiswei Member Posts: 3,715
    Sorry to disappoint you but...

    RX350: Independent MacPherson Strut Front Suspension With Coil Springs and Gas Charged Shock Absorbers Independent Strut Multi-Link Rear Suspension With Coil Springs and Gas Charged Shock Absorbers

    Source: 2008 Lexus RX 350 AWD

    Veracruz: Independent MacPherson Strut Front Suspension With Coil Springs and Gas Charged Shock Absorbers Independent Multi-Link Rear Suspension With Coil Springs and Gas Charged Shock Absorbers

    Source: 2008 Hyundai Veracruz Limited AWD
  • joe97joe97 Member Posts: 2,248
    goldsuv's right:

    Lexus RX: Independent struts with coil springs, gas-pressurized shock absorbers and stabilizer bar

    http://www.lexus.com/models/RX/detailed_specifications.html

    Hyundai Veracruz: Independent multi-link design, coil springs, 17 mm stabilizer bar and gas-charged shock absorbers

    http://www.hyundainews.com/Media_Kits/2008_Models/Veracruz/Specifications.asp
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