Is There Room in the Luxury Market for Hyundai?

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Comments

  • kdshapirokdshapiro Member Posts: 5,751
    "Backy is absolutely correct in his reasoning "

    Actually Backy is 100% wrong. People don't buy a brand, they buy what the brand stands for. People by BMW because BMW has established a reputation for producing high quality sports cars that have an unbelieveble road feel to them. People buy the brand, because they understand what the brand stands for. People who don't understand this, believe people purchase BMW to show off how much they can afford. This garbage about BMWs being expensive while Japanese models are inexpensive is just that. Lexus, Infiniti and Acura as just as expensive.

    I'm sure there will be some ballyhoo when someone proclaims the Genesis is better than the 3/5 series, but I won't believe it. The M45 is still chasing after the 550i and Infiniti has been at this for a while.
  • mpuzachmpuzach Member Posts: 635
    If you think that there aren't people who buy a brand without having any idea what it "stands for", you are severely misinformed. Neither people nor life are as black and white as you're trying to make them out to be.
  • backybacky Member Posts: 18,949
    Well said. I don't know why someone would "buy a brand" without understanding what it stands for.
  • louisweilouiswei Member Posts: 3,715
    BMW will not loose any customers to Hyundai

    I agree that BMW will not loss customers to Hyundai but it's because Hyundai just doesn't have the same "brand appeal", "brand image" or "status" as BMW does yet. Not because most BMW owners actually appreciate the sportiness or driving dynamics of their cars.

    Sure there are a group of people (enthusiasts) who drives Bimmers because they handle well but I would argue that's not the case for at least half, if not the majority, of the BMW owners. Whenever I see trophy wives and daddy's little girls drive a BMW 328i that always solidifies my opinion.
  • steverstever Guest Posts: 52,454
    Let's get back to talking luxo Hyundais and extend a bit more holiday cheer towards each other please.

    thanks.
  • kdshapirokdshapiro Member Posts: 5,751
    Steve is correct, so I'll end ths by saying I responded to your post, containing comments made by you, which I thought were severely lacking in substantive thought and contained nothing but generalities.
  • mpuzachmpuzach Member Posts: 635
    Exactly which comments made by me are you referring to?
  • patpat Member Posts: 10,421
    There's some eggnog and cookies over there on the table. Help yourself. :)
  • mpuzachmpuzach Member Posts: 635
    Thank you, Pat. Happy Holidays to you. :)
  • kdshapirokdshapiro Member Posts: 5,751
    mpuzach, "Is There Room in the Luxury Market for Hyundai?" #973, 14 Dec 2007 9:26 am

    I re-read your post. There is a qualification in the wording and I will use some examples. I'm sure, for example, there is one person in this world who buys a Honda Accord without knowing Honda makes a range of quality, affordable family sedans, and furthermore sells more upscale cars under the Acura brand and furthermore sells other vehicle types also. I'm sure there is a person who buys a Lexus 350 without knowing Lexus mission is to deliver the ultimate in quality, comfort and reliability and their parent company is Toyota. And in the same vein I'm sure there is at least one person who buys a BMW without understanding BMWs philosophy on cars and who by some may be considered to be a "poseur" who should be driving an Elentra. Not a BMW.

    But all of these manufacturers together sell a whole lotta cars. And I would be very surprised if any more than a handful of people bought a car from any of these manfacturers without knowing who they are, where they stand and what they do.
  • backybacky Member Posts: 18,949
    Hey, got any rum for that eggnog? :D
  • patpat Member Posts: 10,421
    Absolutely - it's after 5 in this part of the world, the bottle's on the table! ;)

    FWIW, I think the people who post here are not representative of the general world in their knowledge of manufacturers' objectives and I agree with you if we're looking at our community members. But my personal opinion is that many more people buy cars for payment, color and features with no or little thought toward or interest in manufacturers' objectives; what comes out of their wallet and what they put their rear end in is all they think about. And I also believe that most of those people do not participate in our community.

    Have some rum with that eggnog and let's have some holiday spirit! :P
  • mpuzachmpuzach Member Posts: 635
    I stand behind my point. Though it's probably a small portion of any auto company's customer base, every brand sells cars to people who could not care less about things like reputation, brand image, or the brand's "philosophy" on cars. Not everyone who buys cars (expensive or otherwise) is an enthusiast. I personally know many people who bought their $60-$100K imports simply because they like the dealership, they fell in love with the color, the car felt comfortable during the test drive, or the car was recommended by a friend; in these cases the owners know little or nothing about the actual attributes of the car or the manufacturer. There are others who buy a particular brand in spite of its "reputation"; I'm one of them. I recently sold my Audi A6 4.2 (the best car I've ever owned made by one of the most highly-respected automakers in the world) in order to buy a new Chevrolet Corvette. I knew going in that there was no way any GM product could match up to my Audi, yet I bought it anyway. Why? Because the Corvette can do things performance-wise that not even Audi's R8 can match and for less than half the price.

    There's no telling how the Genesis will stack up vs. European luxury sedans until the Genesis actually appears. When it's finally available for purchase, people will buy it for all kinds of reasons. Some will do so simply because they like the car; others will do so because they see it as a lower-cost but suitable alternative to European imports. Believe it or not, there will even be those who will buy it because (and not in spite of the fact that) it's a Hyundai.
  • slateblueslateblue Member Posts: 110
    Pat, your comments are right on and mirror my own thoughts. Hope you have an enjoyable holiday. :)
  • bobadbobad Member Posts: 1,587
    Well that was very well stated Zack. I can't argue with a single word.

    I can only add that I think there are many people out there that would love to drive a BMW, MB, or Lexus, but can't quite afford the purchase price or high cost of ownership. They end up searching for alternatives. When they actally test drive cars like the Genesis, some will decide it's close enough. In this case, Genesis is not really taking business from the luxury brands. It's accelerating the owner's entry into the luxury market... putting drivers in the seat of a near-luxury car a few years ahead of schedule.
  • kdshapirokdshapiro Member Posts: 5,751
    I agree people buy cars for a lot of reasons, but I couldn't disagree more people don't understand/know what the cars in a manufacturers lineup represent, It is not what I have been noticing. whether the cars cost $25K or $250K. I have been in a position where I crosshopped s SUV against a BMW. I didn't know what I wanted to drive this time around, not that I didn't understand that Jeep produced mainly SUVs and BMW produced luxury cars more geared toward a certain performance niche.

    We also don't know on what the final trigger is for a car sale, it may have little to do with the car or everything to do with the car. Some people have a wider range of acceptable standards than other people. But I don't believe for one minute people don't get the difference between Lexus and BMW or Bentley and Infiniti. The latter a ridiculous comparision but illustrates people do understand these differences.

    As it relates to this topic, there might be people who want to drive one just to try something new, not because they couldn't tell the difference between an Acura and Hyundai or BMW and Hyundai.
  • backybacky Member Posts: 18,949
    I didn't know what I wanted to drive this time around, not that I didn't understand that Jeep produced mainly SUVs and BMW produced luxury cars more geared toward a certain performance niche.

    In case you hadn't noticed, BMW makes SUVs also. That means Hyundai may wind up competing against BMW in that market someday, although for now I think the Veracruz is aimed more at the Lexus/Buick part of the SUV market than the BMW part. A "Genesis" SUV down the road perhaps??
  • kdshapirokdshapiro Member Posts: 5,751
    "In case you hadn't noticed, BMW makes SUVs also"

    BMW makes SAVs not SUVs. I was thinking I wanted a SUV so I could take it offroad or on the beach, siomething with a locking low range. While I think Lexus RX350 is the one to beat, the X3 does a reasonable imitation of a sedan, something the RX350 is very far away from. I thought I had initally like the X3 and disliked the X5 now it's the other way around. BMW has done an awesome job with the X5, the top of the line, which I test drove, is awesome. BMW has to do the same for the X3 oir they will lose customers to the Veracruz.
  • backybacky Member Posts: 18,949
    Ah yes, those clever automakers, always trying to differentiate themselves somehow. Even though the rest of the world considers the X3 and X5 to be SUVs, BMW calls them "SAVs" as if they are something totally unique. Not surprising from the company that came up with "The Ultimate Driving Machine" slogan. Obviously, we will all gladly pay a more for those unique SAVs than for just-another-SUV. ;)

    Maybe Hyundai should borrow a page from BMW and come up with a new acronym for its top-end SUVs--"SVV" perhaps?
  • iluvmysephia1iluvmysephia1 Member Posts: 7,709
    isn't that how we show everyone we're cool? In fact, if we buy a Hyundai we're just not cool at all. And if we buy a Kia, well, and its a deep well...we're just a SUV buyer. We are not of the same ilk that buys cool BMW's and calls them SAV's.

    Yikes. Tell me people aren't that dumb and shallow. Never mind...I just caught an image of Britney Spears in my mind. They are really that dumb and shallow. :sick:

    2021 Kia Soul LX 6-speed stick

  • gagricegagrice Member Posts: 31,450
    Yikes. Tell me people aren't that dumb and shallow.

    Well until the Prius came along the Yugo was the car the liberal greenies wanted us all to drive. You remember the famous line in the song " They swerved to miss a baby duck, they squashed beneath a produce truck, but they drove with pride, in a Yugo"

    Image is everything to many in our country.

    http://humor.beecy.net/songs/Elvis/
  • backybacky Member Posts: 18,949
    iluv, it's worse than that. If you buy a Hyundai or Kia, you have bought "the car of last resort." :P We know after all that only "poseurs" drive cars like the lowly Elantra! ;)

    For many people, it's true what you said... they drive a particular car or brand of car to show others they are cool, or well-to-do, or some similar reason related to ego. That's why Hyundai will have some trouble breaking into the luxury vehicle market I think. Hyundai, or even Genesis, isn't the marque that those folks will think of when they plan to plop down 30-40 Big Ones on a car.
  • kdshapirokdshapiro Member Posts: 5,751
    We are not of the same ilk that buys cool BMW's and calls them SAV's.

    You are a funny person. There are XAVs, XUVs, and the ilk. Yes, the X5 (not X3) is a way cool SAV. I don't need to be cool, I like to be coddled...BMW style. :shades
  • kdshapirokdshapiro Member Posts: 5,751
    Hyundai will have trouble breaking into the near luxury market because people who can afford luxury vehicles, get what they pay for and want what they want. If you don't think there isn't a world of difference between a 550i and an Azera. Your talking cliches...like the rich folk are dumb who all they like to do is spend their money to show off what they have.
  • backybacky Member Posts: 18,949
    If you don't think there isn't a world of difference between a 550i and an Azera.

    Of course I know there's a big difference. But then again, one can't buy a new 550i for around $21k (advertised price for the Azera SE in my local paper today). The Azera is a lot of car for that kind of money. It looks like the Genesis will offer a lot of car for its asking price. Those who need or want what the 550i offers and can afford to pay the price, that's what they'll buy.

    BTW, "... people who can afford luxury vehicles, get what they pay for ..." sounds a lot like a cliche to me. :)
  • kdshapirokdshapiro Member Posts: 5,751
    "BTW, "... people who can afford luxury vehicles, get what they pay for ..." sounds a lot like a cliche to me. :) "

    You have made my point, thank you. The circular argument going on is people buy luxury brands because they are snobs and want to show off what they have. While I'm sure there are those who believe in the absolute sense the Azera is out-BMWs the 550, back on planet earth there is a world of difference in the cars and a world of difference in the price. Getting back to your "cliche".. you get what you pay for is no cliche and usually the truth. The converse is a bargain is usually a bargain, even if you don't want to believe it.
  • backybacky Member Posts: 18,949
    And the point I've made for you is, um, what?

    I find it hard to believe that there are actually people out there who believe that the Azera out-BMWs a 550i, but I guess with 6+ billion people on the planet, you could find at least one person who has any given point of view.

    As for "you get what you pay for" not being a cliche... try googling "cliche" plus "you get what you pay for" and see what pops up.

    When I figure out what you mean by "a bargain is a bargain", I'll be able to tell you if I believe it or not. :confuse:
  • joe97joe97 Member Posts: 2,248
    "Yes, the X5 (not X3) is a way cool SAV"

    And not the X6 SAV either. Yikes.
  • kdshapirokdshapiro Member Posts: 5,751
    "And the point I've made for you is, um, what?"

    I'll let you decide. :shades

    Your point, correct me if I'm wrong, is that *somre* people by things to impress others. The subtext is that the things they buy are usually no better than the less expensive variety, which I'm sure you didn't really mean. While I'm sure there are people who buy things to impress others, it's actually none of our business why people buy high-end BMWs, Lexus, and other expensive depreciating assets. While the intended mission of a Rolex may no better than a Timex, or the intended mssion of a 760 may be no better than an Azera, it's the way the intended mission is accomplished.

    Wood steering, leather, and a host of "other" luxury features are now mainstream, separating near-luxury from luxury is becoming difficult. If Hyundai wants to compete with Lexus, they better do what Lexus does only better and less expensive.
  • gagricegagrice Member Posts: 31,450
    I think Hyundai faces the same obstacles that Lexus did in 1989. My wife was on her 3rd Mercedes and also owned a 928 Porsche. She wanted to give the LS400 that was new on the market a try. She has owned it longer than any other car. It still looks nearly new after 18 years. Hyundai could pull off a similar coup on the luxury brands if the Genesis is a peach of a car at the right price. Not much room for error.
  • iluvmysephia1iluvmysephia1 Member Posts: 7,709
    When does this pup hit our shores? Although I won't be buying one I can't wait to see how Americans are digging the smart looking Genesis.

    The brand new Genesis/Tibby coupe I just read an article on in MT or C&D or R&T(they all run together to me :) ) is a gorgeous new automobile. The one in the article is bright orange and will start at only $24,000. It borrows some shark-bits from the Tiburon and the overall shape is Tiburon-ish, too. The write-up made it sound like Hyundai is not sure if the car will be called the Genesis coupe or the new world order Tiburon yet.

    2021 Kia Soul LX 6-speed stick

  • backybacky Member Posts: 18,949
    My comment was that some people buy things because of ego, e.g. to be "cool" or appear well-to-do to others. That's all it was, a comment. Please don't read more into it than what was there. I don't care one bit why an individual buys a car. It's their money and their decision. My comment was made in the context of this discussion, i.e. why Hyundai will have some trouble convincing some folks to even look at a Genesis let alone buy one.

    I believe that Hyundai can do what Lexus does, at a lower price. I think they have demonstrated already they can do that with the Veracruz and to some extent with the Azera. The Genesis will take Hyundai further down that path.
  • prosource1prosource1 Member Posts: 234
    'The Genesis will take Hyundai further down that path.'

    Hyundai is in this for the long-haul and the Genesis is their product, both in sedan and coupe form to enhance their image. In the boardroom at Hyundai, I am quite sure their objective is not to go head-to-head with Lexus. Despite the fact your see them voicing this with RX350 vs. Veracruz comparisons, their real objective is undoubtedly to enhance their brand image by even being considered and they know this is a marathon and not a sprint. This is an incemental process. The Genesis is another step in the process to get to the Top Five and to maximize profits. They make a great deal more money on Veracruz's, Santa Fe's, Azera's, Sonata's and Genesis' than they used to make on all of the Accents and Elantra's they sold. Even with rebates.
  • mpuzachmpuzach Member Posts: 635
    One thing that seems pretty clear is that with the Genesis, Hyundai aims to have a price advantage over other near-luxury cars. Of course, such pricing advantages can be obtained in many ways e.g. lower margins, cheaper labor, platform sharing, and content levels to name but a few. When it comes to price vs. content, it can be a tough job trying to figure out what buyers are willing to pay a little extra for and what things, if absent, would be deal-breakers for potential buyers. Some of the things that are required if Hyundai wants Genesis to compete in the luxury segment include (IMO):

    High-quality leather interior
    Genuine wood interior trim (and none of the cheap-looking fake stuff)
    Attractive and complete interior lighting, including ALL controls (e.g. power mirror controls, maplight & moonroof buttons) and ambient lighting
    Comfortable seats with adequate thigh and lateral support, multi-level heating AND cooling
    Separate rear compartment A/C controls
    Active cruise control (at least as an option)
    Outstanding sound system
    Multiple suspension settings
    Active xenon headlights
    High-quality interior surfaces, minimal use of hard plastics
    At least a few exterior colors not shared with other Hyundais

    In coming up with this list, I'm assuming that they have the bigger things e.g. outstanding power train & brakes, electronics, etc. covered. If they omit too many items from the above list, though, the Genesis will be little more than another entry in the already-crowded "standard" sedan segment. They'd be better off loading it up, adding a few grand to the price, and making it a true luxury competitor IMO.
  • joe97joe97 Member Posts: 2,248
    Of course it is going to debut at Detroit in January; as far as arrival to showroom, originally it was set for the 2nd half of 2008, although I am hearing it is being pushed to spring 2008. We'll get official confirmation from Hyundai shortly.

    Re: Genesis coupe - rumored the I4 turbo will start just under 20K and the V6 version will be around 24, 25K. As Hyundai said, the most affordable 300hp + V6; and may I add the only I4 turbo when it hits the market.

    It's hard to say whether Hyundai has finalized the name of the coupe, it probably has already. If there is any hesitation, it would be the reputation of the Tiburon already with the market, with the good following, especially in the enthusiast crowd. I'd like the return of the Tiburon nameplate but it's logical to be called Genesis coupe, especially since the "true" Tib replacement is forthcoming.
  • joe97joe97 Member Posts: 2,248
    #3 through 9 you can all but put in the books. The rest we will have to wait until we see the car up and close.
  • iluvmysephia1iluvmysephia1 Member Posts: 7,709
    this Genesis coupe looks hot! I mean, I consider the Tibby hot, and this Genesis coupe draws a lot of styling cues from the Tiburon.

    Oh, I quoted the V6 version, but the one I would buy would be the I4 turbo version. At that price it only makes me salivate. I currently am driving a '08 Mitsubishi Lancer GTS with the automatic CVT. If I bought a two-door coupe like this I would want the standard 5-speed transmission. This new Genesis coupe is beautiful. The magazine was confused as to whether it was gonna be called the Genesis coupe or the Tiburon, so it got me confused as well. ;)

    2021 Kia Soul LX 6-speed stick

  • backybacky Member Posts: 18,949
    IMO giving the new coupe the Genesis name would be a mistake. I don't see how Hyundai can offer a "luxury" coupe for a price starting under $20k. I think Hyundai should reserve the Genesis name for its offerings that target the luxury market, as they are trying to do with the sedan.

    Also I can't understand why Hyundai would offer a coupe that offers both an I4 (turbo) and V6, and starts under $20k, plus offer another coupe that is supposedly a replacement for the Tiburon. How much different in price would these two cars be? With a pretty well equipped Elantra sedan starting at $17k MSRP these days, who would buy a FWD I4 Elantra-based (assumption) coupe when they could spend a couple thousand more and get a turbo I4 RWD coupe? And what would be the combined market for these two coupes? IMO, Hyundai should spend its resources making sure the Genesis launch is flawless and massaging their bread-and-butter vehicles (Sonata, Santa Fe, Elantra) into class-leaders in every way possible.
  • gagricegagrice Member Posts: 31,450
    Genesis coupe looks hot! I mean, I consider the Tibby hot, and this Genesis coupe draws a lot of styling cues from the Tiburon.

    Hopefully it is a little roomier than the current Tiburon. My sister has one and I have driven it twice. I have to hold my head sideways to see out the windshield or let the seat tilt back to where I am laying more than sitting. It is the most uncomfortable coupe I have ever driven. It does look racy and my sis loves it.
  • cdmuilecdmuile Member Posts: 152
    I particularly agree with your third item. Especially annoying to me is the inside rearview mirror. I use the" Homelink", or whatever it's called, to open my garage door. Problem is, the buttons aren't illuminated. I've had the car almost two years and at night I'm still stabbing, groping, fondling the mirror to find the #$%^$#@* garage button.
  • joe97joe97 Member Posts: 2,248
    Interior is expected to be roomier. The coupe's RWD platform (shorten a bit vs. the sedan version) is much longer than the current Tiburon's platform (Elantra).
  • joe97joe97 Member Posts: 2,248
    I can certainly see where you are coming from, and I'd agree with the last part, especially.

    The Veloster concept, hinted for forthcoming fwd coupe, is i30 based, IIRC.
  • hjc1hjc1 Member Posts: 183
    The button for Homelink garage door is located next to the GREEN light. on the mirror.
    No need to grope for the button LOOK for the light.... easy :=)
  • prosource1prosource1 Member Posts: 234
    Mazda Millenia. Mitsubishi Diamante. Hyundai Genesis. Hyundai is hoping that like the Millenia and Diamante, which failed to catapult those manufacturers to the top tier with the Honda's and Toyota's, where there are real profits and sales, their Genesis sedan willl vault their brand image to compete with Honda and Toyota. Hear me, don't get confused thinking this is Hyundai's attempt to offer a luxury sedan, No!. It is their attempt to enhance their brand image so they can sell more Sonata's and Santa Fe's in their Hyundai line.
    The fact is that this Genesis is the single most important product Hyundai has ever built. It's bigger than the 10-year warranty, it's bigger than their quality improvements and JD Power rankings and bigger than the new Sonata, Santa Fe or Veracruz. Why?
    It's all about perception in this industry and Hyundai is not perceived to be equal to the top tier brands of Honda and Toyota. In fact, Hyundai's own research shows that despite initial quality nearly equal to Lexus, rave reviews for safety and design and even improved reliability, they are barely equal with domestics, even after a $800 milllion dollar advertising campaign to tout their gains! Hyundai's image and sales are flat. So what do you do? If you're Hyundai you build a perception altering, paradigm shifting sedan and coupe that creates a buzz like never before. Overcompensate. You set aside five years, a half-a- billion dollars, you buiild your first real RWD, a direct injection V8, give it almost 400hp, put every imagineable option that you can get on a Lexus or Bimmer and hope it grabs the attention of the media who influences the public. Then wait to see if it trickles down to your money-making volume products. Who cares how many you sell. With revenues of $67 billion last year, Hyundai can afford to take this risk to keep their big investment factories running. You also concentrate more on how well it is built and how much press it gets. The Genesis is overkill and it's NOT really intended to compete with the sister, Lexus, but the big brother, Toyota, who really makes the big money selling millions of Camry's, Corolla's and RAV 4's.
    It's a sensible strategy for if they succeed in enhancing their image, there will be huge payoffs when Camry, Accord, CRV or RAV4 buyers now consider the Hyundai. If it works you won't worry about your Montgomery plant because Sonata's and Santa Fe's will be flying out of there at record levels. And watch your Azera's, Veracruz's, Accents, Tucsons and Elantra's move too!
    So forget about the Genesis being Hyundai's attempt to compete with other luxury brands. If Hyundai was attempting to get in the luxury market, they would rebadge Azera, Veracruz, Genesis and Genesis coupe and give us a luxury brand now!. But they aren't spending the $1 billion to set up a luxury marque and they won't any time soon.
    If you are listening, Chairman Chung, the Genesis better be good. When Edmunds, Autoblog, Jalopnik, Car and Driver and Motor Trend tests this, if it is not huge news, if it is not given a big thumbs up, if the ride, performance, handling and execution isn't right there with Lexus and BMW, after all the buzz the media has created for you, you will have blown an opporuntunity to get to the top tier that other automakers like Mazda and Mitsubishi will never get again and are now relegated to the second level of manufacturers. Remember the Mazda Millenia? Gone. Remember the Mitsubishi Diamante? Gone. Since then their sales have basically remained flat. Those models were their Genesis and they never got to the table.
  • backybacky Member Posts: 18,949
    I agree with your comments... in the short term. Once Hyundai builds up its brand image, however, I think it will go directly after the Lexii of the world. How many years that will take, I don't know. But it will happen.

    Also, consider that there are other markets for Hyundai besides North America, so the Genesis gives them a luxury vehicle to sell in those markets--including the important ROK home market.
  • backybacky Member Posts: 18,949
    Isn't the i30 based on the Elantra platform?
  • joe97joe97 Member Posts: 2,248
    I don't think so. The i30 shares the platform with the Kia Cee'd but there are some tweaks between the two.
  • hjc1hjc1 Member Posts: 183
    I agree on everything you says about Hyundia except about the Millenia & Diamante.
    They never had an image..... no real power and not much style
  • cdmuilecdmuile Member Posts: 152
    I'm not sure if I should thank you. I have so few complaints about the Azera I kinda enjoyed getting pissed when trying to find the garage door button. Next to the green light.....how simple! Okay, Thanks.
  • prosource1prosource1 Member Posts: 234
    I keep hearing the argument that Hyundai Automotive sales are flat. But there is a whole world outside US borders. Even sales in Canada are up. World-widenumbers are up in double digits. It is only in the US where they are not up in double digit figures. When 2007 figures are released Hyundai will again be the 6th largest automaker in the world. You can check monthly sales figures at PRNewswire.
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