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Is There Room in the Luxury Market for Hyundai?

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  • carguy58carguy58 Member Posts: 2,303
    "Yeah, we have a Hyundai, Pontiac, Buick, GMC Subaru dealer over here. Up the road is a Nissan-Kia-Cadillac dealer."

    There's a dealer that sells Nissan's and Caddy in the same delership? I never heard of those 2 brands paring up in the same dealership before. I have seen/heard of a couple Nissan-Kia dealerships paring in Jersey though(where I live.)
  • fezofezo Member Posts: 10,386
    I'm in Jersey, too. This is in Toms River.

    To be fair I think the Cadillac part is its own building. The guy with the Buick-Pontiac-GMC has that in one building and the Hyundai-Subaru building across the street. They all used to be one dealership but he's grown considerably.
    2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
  • carguy58carguy58 Member Posts: 2,303
    "To be fair I think the Cadillac part is its own building. The guy with the Buick-Pontiac-GMC has that in one building and the Hyundai-Subaru building across the street."

    Oh yeah I remember seeing the Caddy dealership, and Hyundai-Subie dealer on RT 37 the last time I went down to Seaside Heights. I think I remember seeing the Buick-Pontiac-GMC dealership on RT 37 too.
  • carbuyer11carbuyer11 Member Posts: 114
    Since the 3000+ new Veracruz owners are really "early adopters", I thought it would be useful to begin a post that allows us to post your experiences with initial quality and how responsive the dealers have been in correcting any problems. I was in a similar situation 2+ years ago when I purchased one of the first 2000 Honda Ridgelines to roll off the assembly line. I joined an on-line owners club that allowed everybody to share their experiences. Despite being a Honda, there were lots of initial quality issues (most of them cosmetic). I learned a lot from other owners' experiences and these learning helped me when working with my selling dealer.

    For the record, I've had no issues so far with my Veracruz (a little under 1000 miles and 3 weeks of ownership). So far, Hyundai is living up to their recent track record for initial quality, one of the main reasons I took the plunge.
  • jimmyz4jimmyz4 Member Posts: 25
    If the Veracruz I have is any indication of Hyundai's commitment to quality and design, I say they can compete in the Luxury market.

    I bought a VC, Limited with Ultimate package and am more than satisfied with what I got for $35,000. I had an RX300 before. It has 2200 miles and gets 19 city and 23.5 highway MPG. It is far easier to drive than my Lexus and I don't tire as much on long trips. It seems to "know" where it is going and tracks the road beautifully. Those of you that have VCs know what I am saying.

    If you read all the VC comments, you will see that consumers who purchased are very happy. Oh, you do see an occasional set of nutzo comments, but, we all know where those may be coming from.

    The biggest obstacle might be getting out the message that Hyundai has "grown up" and is a serious contender for $30000+ vehicles. Some people may still want that "L" in the front of their cars.

    I suspect that Hyundai was making a quiet introduction of the Veracruz and will be carefully watching their new addition. Third party reviews and customer comments may help to move the brand forward.

    No, they will not put Lexus/Toyota out of business, but, I am sure as we speak their engineers are taking apart a Veracruz and wondering how Hyundai can produce such and excellent product and sell it at the price they do.

    I love my Veracruz and recommend it highly. The fact that Motor Trend report compared the Veracruz to the Lexus shows that they are in that luxury market. Though, perhaps in a quiet way for now.
  • scbobscbob Member Posts: 167
    FYI, the Anderson (near Greenville) SC Hyundai dealer is in a stand alone facility right next door to the Nissan dealership. The "senior" sales manager at Nissan also sort of, kind of supervises Hyundai if you have a complaint. Both are owned by the dealer who has the franchise for all GMC products in Anderson and that facility is about two miles away.
    I looked real hard at Lexus ES 350, Infiniti G35 and Acura TL before I purchased a 2007 Azera Limited w/ Ultimate pkg. Did not consider price and still came back to Azera. To me it is in same category as ES 350, G35 and TL - Upscale sedans. The price is what keeps it from being considered in that group.
    I considered BMW, MB and Audi, but the reliability records are not real good. Then you have to buy so many options to get a comparable car that the price really skyrockets.
    In looking at Lexus/Avalon products, I found the dealers to be arrogant and the prices really inflated compared to Consumer Reports' Bottom Line figures, Lexus in particular.
    At one time,nobody thought of Toyota as being capable of producing more than an econobox, much less a luxury car. Of course, the ES350 is really a Camry with a few more bells and whistles and a much higher price tag.
    Anxiously awaiting the Genesis. :shades:
  • microrepairmicrorepair Member Posts: 508
    I've been reading this discussion with great interest on t whether Hyundai can succeed with a true luxury car. I'd like to throw in my .02 worth on what a luxury car is. I currently drive a Mercedes E320 that has 99K miles and I had previously owned another that I sold when it had 140K miles. I bought both as certified used from the same dealer and they each had mileage on them in the mid-30K range. The first was fairly reliable, not too many things went wrong; but the current one has had a lot of problems in the last two years. Fortunately, it has cost me nothing because of the MB Starmark warranty program, else I would spent over $4K in the last two years.
    So I am looking ahead to next year when I can hopefully afford to buy another luxury car. It won't be a Mercedes. For approx. the same price as a 2 year old E-class I can buy a brand new Azera that has virtually the same features and equipment as the my E-class. And the Azera will be more economical to operate (reg. gas) and more reliable.
    To my mind, price is not the determinant of luxury status, but the features and performance. I have yet to test drive the Azera so I cannot say whether I would class it as a luxury car until I see if it rides and handles similar to the MB. I have thought about and looked at the Infiniti M35, the Mercury Milan, and a few other nice cars too. But I have time yet before I need to make a decision. I hope the new Hyundai Genesis is available by the time I need a new car; I'll certainly throw that into the pool of choices. I don't see a problem with a new upscale car being labeled as a Hyundai as they have improved and made a terrific reputation for themselves in the lsat few years.
  • cdmuilecdmuile Member Posts: 152
    Do by all means drive the Azera before deciding on your next purchase. I still don't know why I even drove the Hyundai when I was looking to replace my last vehicle(a luxury car). I guess it was becaused I was p***** off at the old dealer. That was in March of 06 and I can't praise the Azzie enough. My, how far they've come (Hyundai) since the late 80s! Forget the manufacturer and please just drive one.
  • stushstush Member Posts: 62
    I have a 02 santa fe. Bought in 04 with about 28,000 miles on it. I'm about to turn 59,000 miles. I still have my original B F Goodrich tires on. Should pass inspection in May 08 with them. It has been nothing short of bullet proof. Only had drivers side power window motor go. Brakes and rotors, but, that is to be expected. Also, have the 07 Entourage. A few small problems but it drives like a dream. That is to be expected of a new model introduction. As far as a luxury car, aka, Genesis. I think you would be crazy not to include Hyundai as a test drive. They are offering all the bells and whistles as the known luxury models, but at an affordable price. Sure you are going to lose that sexy / look at how much money I make appeal. But you'll be laughing all the way to the bank. Hyundai is taking the walk soft but carry a BIG STICK approach. I have nothing but high expectations for this new luxury car. Again, you would make a big mistake if you at least didn't give them a try.
  • bobadbobad Member Posts: 1,587
    Luxury car prices are getting crazy, and prospective luxo buyers must wait. Current luxo owners are often forced to drive their cars an extra year or 2. Hyundai has created the solution for that problem. The Veracruz and Azera are the real deal. There's no downside to owning and driving them. I don't have a doubt in my mind that Genesis will equal or even improve upon the fine reputation those cars are building.
  • scbobscbob Member Posts: 167
    First they better get the suspensions corrected, e.g. the Azera's.
    However, if you look at the current luxury cars, they are actually getting smaller, esp. the back seats and trunks. Lexus is just one example. Also, in order to appeal to the "sport" crowd, they are sport tuning the suspensions which lessens the true luxury ride.
    This could leave a big market for Hyundai.
    Perhaps, the Azera as a sport tuned, performance model and the Genesis as a large comfortable, luxury model- or vice versa would be a good scheme.
  • volvomaxvolvomax Member Posts: 5,238
    Don't know where you are getting this information.
    Most luxury car drivers lease their cars,so they only have them for 2-4 years.
    Lux cars are really the only cars whose sales are increasing.
    BMW, M-B,Audi and Land Rover are having record years.

    no real lux car buyer would be caught dead driving a Hyundai,unless its a rental car.
  • british_roverbritish_rover Member Posts: 8,502
    Land Rover has had record sales for the past two years and 2007 will be another record year.

    They have also had worldwide record sales.

    the best performance in 714 months of business.
  • rockyleerockylee Member Posts: 14,017
    When is the Genesis, going to debut ????

    -Rocky
  • bobadbobad Member Posts: 1,587
    Don't get price confused with luxury.

    Maybe the Hyundai's don't have the last little bell or whistle, but they have the important things that make a luxury car.

    If you drive the cars without knowing the price or what badge is stuck on it, the gap closes dramatically.

    I think there's a huge market out there consisting people who want luxury, but are just short of affording it (or are too smart to pay 2x what it's worth).
  • drfilldrfill Member Posts: 2,484
    ......they have the important things that make a luxury car.

    If you drive the cars without knowing the price or what badge is stuck on it, the gap closes dramatically.


    It would be difficult to contradict yourself more. :sick:

    Hyundai needs to build their brand image, which they seem to want to do in a microwave, and then build a new luxury brand, if they want to do this right. That cake won't rise without all the ingredients.

    Sounds like the want to half-[non-permissible content removed] it. It's shown in their Hyundai sales. I see their sales problems continuing. :lemon:

    DrFill
  • bobadbobad Member Posts: 1,587
    Don't know where you are getting this information.
    Most luxury car drivers lease their cars,so they only have them for 2-4 years.
    Lux cars are really the only cars whose sales are increasing.
    BMW, M-B,Audi and Land Rover are having record years.

    no real lux car buyer would be caught dead driving a Hyundai,unless its a rental car.


    I'm not talking about uber rich, traditional luxury car buyers. I'm talking about younger people that would settle for an "entry level" luxury car. They don't care as much about status as the older luxury car owner. They would like a nice, large, safe, comfortable car with good reliability that doesn't cost them a year's salary.

    If you think a prestigious badge or a high purchase price magically make a car luxurious, then we can never agree. If you compare such tangible attributes as ride, room, appointments, styling, and safety, then we have some common ground. I can understand those who disagree, because high price is practically the very definition of a luxury car. A $75K Caddy is a luxury car, an identical $30K Caddy would not be considered a luxury car... except for what the badge hinted at.
  • mpuzachmpuzach Member Posts: 635
    Do you have any facts to support your opinion? I happen to agree with bobad's points 100%. Though I haven't seen any pictures or read any info about the Genesis' interior (upon which many peoples' opinions will be based), I'm betting that when the car comes out it will make heads spin. BTW, I don't recall hearing one word from Hyundai about wanting to turn themselves into a luxury brand; what I know is that they're working hard to improve the quality and design of their existing line-up (which few would dispute they've done a great job of so far). The upcoming Genesis isn't their attempt at redefining the brand, it's their way of competing in a market that up to now they've merely been able to observe from the sidelines. As for your final comment, I find it to be quite idiotic.
  • drfilldrfill Member Posts: 2,484
    Go look up Hyundai's sales numbers for the last two years.

    Look up the revolving door of executives.

    Look up the weekly revisions of their sales goals.

    Look up the sales of their core products (Elantra and Sonata).

    Look up the change in marketing, and who their new target market is.

    I know what's happening. The question is do you know? :confuse:

    If you want to use the word idiotic, that's fine. Know what it means first, and show that you can use it in a sentence, that's all I ask.

    If you come here, aren't educated, then want to call me out, know what your talking about first.

    If you're gonna be rude, I'll let you wallow in your own ignorance. ;)

    DrFill
  • volvomaxvolvomax Member Posts: 5,238
    Luxury is more than just bells and whistles.
    I think hyundai hopes that people believe that is all that it is.
    Luxury is engineering details. Suspension design, brake systems, material quality.
    Hyundai simply cannot match the best from the Germans or Lexus in those categories.
  • volvomaxvolvomax Member Posts: 5,238
    I'm not talking about uber rich, traditional luxury car buyers. I'm talking about younger people that would settle for an "entry level" luxury car. They don't care as much about status as the older luxury car owner. They would like a nice, large, safe, comfortable car with good reliability that doesn't cost them a year's salary.

    I would say that the badge matters MORE to those people.
    These are people who would buy or lease the least expensive bimmer or benz just to say that they drive one.
    If you lok at sales for Lexus,BMW, M-B, Volvo, Audi etc you will find that they all sell more of their inexpensive cars than the expensive ones.
  • gagricegagrice Member Posts: 31,450
    The badge may mean a lot to some folks. It is a poor criteria for buying a vehicle. We just went through the trials of buying a new SUV. I looked at the VeraCruz. If it was bigger I would have considered it. I started out with the idea of buying a used Mercedes GL320 CDI so I could register it in CA. One landed at our dealer with 8000 miles. I took an extensive test drive and did not like the transmissions shifting up and down with lurching thrown in. There went my interest in a Mercedes. I had some time to kill so I drove a Sequoia that is the size I like. It was extremely smooth shifting, riding and handling. We checked out the Lexus GX470 that is slightly smaller. It was really no nicer than the Sequoia Limited. In fact the paint had a blemish in the hood. I pointed it out to the salesman. His response was it is covered by warranty. That would be the day I bought a new car that was going to be repainted at a dealership. So Lexus lived up to my expectations. I had previous experience with that dealer that was way less than positive. The wife liked the Sequoia so we bought it. Has everything offered from the factory. MSRP $51,684. Dealer knocked off $10k without haggling via the Internet manager. It was a painless buying process.

    With reviews matching the RX350 to the VeraCruz and the Hyundai winning the contest, I think it proves that at least they have a fighting chance at those that are not brand conscious such as myself.
  • drfilldrfill Member Posts: 2,484
    Would be a good idea. Not exactly a compelling argument for the Hyundai. Pretty shaddy, actually. :sick:

    MT used to be good.

    But television used to be watchable, too. :lemon:

    DrFill
  • joe97joe97 Member Posts: 2,248
    Land Rover has had record sales for the past two years and 2007 will be another record year.

    They have also had worldwide record sales.


    Wrong thread? ;)
  • joe97joe97 Member Posts: 2,248
    When is the Genesis, going to debut ????

    -Rocky


    Detroit Auto Show in January, although we could see domestic market version (S. Korea this December or earlier).

    The car still doesn't have an official name yet, although the Genesis is an ideal candidate, and still is in the running. For the time being, most in the industry, myself included, calls the RWD luxury sedan the "BH", appropriately as its dubbed codename.

    The near-production concept Genesis at New York Auto Show this past year, a very large portion, should flow through to production.
  • british_roverbritish_rover Member Posts: 8,502
    I was providing data that luxury marks aren't slowing down and aren't losing customers or volume.

    Gas is approaching 3.00 dollars a gallon Land Rover only sells SUVs and before April the least expensive vehicle sold by Land Rover started at around 48,000 dollars. Even now the average MSRP of Land Rover's is well over 50,000 dollars.

    If any brand was going to be seeing a slow down it would be Land Rover.
  • joe97joe97 Member Posts: 2,248
    Ok Toyota salesman, what does a future product has anything to do with current sales? Why am I not surprised to hear about your bashing for anything that's not Toyota-related? Believe it or not, Hyundai has the products to compete with the rest of the industry. Obviously the perception is something the brand has to overcome. Are they working on it? I draw to you their latest campaign efforts, which are focused solely on changing perceptions. Will they accomplish their goals overnight? No, of course not. It will take time but don't think they're not trying. That reminds me, I know I'm an old fart but memory serves me correct a lot of brands (i.e. Toyota, Honda) went through similar phase as Hyundai did.

    Talking about memories, recent memory tells me the past few months which Toyota was down, how did Hyundai do? Someone forgot to tell you they were up.

    I see that's the sales problem Hyundai has...regardless, drfill's "Hyundai (alleged) half [non-permissible content removed] plan" has nothing to do with the purpose of this forum. By the way, the sales setback the whole industry is going through - it's called housing and the ripple effect.
  • joe97joe97 Member Posts: 2,248
    Gotcha :)
  • joe97joe97 Member Posts: 2,248
    Right....and when M/T was good for you, of course, Hyundai hadn't gotten the first-place nod over Lexus.
  • 0patience0patience Member Posts: 1,712
    Actually, Hyundai is slowly gaining ground.
    After 30 years of having only GM products, I bought a new Santa Fe this year for my wife. I bought it because it had everything I wanted, plus was about $10,000 less than other vehicles we looked at. The only vehicle that we went back and forth with was a Duramax Silverado extended cab 4x4.
    But since it was the wife's, the Sante Fe won out. :surprise:

    A couple of my customers, one who owns a BMW 545i and a Jag XJ and another who has a Mercedes CL500, both brought over brand new Hyundai vehicles for me to check out for them.
    One was a new Azera Limited and the other was Tiburon Limited.
    They both were saying that the vehicles had everything their other cars had, but less than half the pricetag.

    They were tickled to death. Now their high dollar cars can go in the garage, while they drive a similar car. (Their words, not mine)

    And before you go and say that they probably couldn't afford another vehicle, they can. But they are also conscious of the fact that sometimes you don't have to spend that kind of money.
  • joe97joe97 Member Posts: 2,248
    Congrats on the Santa Fe purchase. An excellent crossover!!

    I will be on a similar path as your customers, as there is a good chance the forthcoming BH luxury RWD sedan will end up in my garage next year. The other two on the short list is the G8 & the M. And should I end up with the BH, who knows, I may get its matching cousin, the RWD coupe based on the same platform ;)

    This is still at least a good 9 months away so we'll see...
  • 0patience0patience Member Posts: 1,712
    My wife is kind of upset we didn't wait until the RWD model came out, once we saw it on one of those TV shows.

    If Hyundai continues to keep the prices down and provide the quality they have been, along with the 10yr/100,000 mile warranty, then a lot of the car manufacturers will need to start staying on their toes.

    One of the deciding factors on buying the Santa Fe was that for $28,000 we got everything that we wanted.
    Basically a loaded vehicle. I had them drop the leather seats (Teenagers and leather, not a good idea) and the entertainment center. It wasn't needed, as I do some installs.

    Once my sister in law saw our Santa Fe, they ended up buying a Tuscon, which was too small for us, but she paid less than $20,000 for it.

    The thing is, they seem to be holding up pretty well and their cost is reasonable. That in itself is a big seller.
    They sure seem to like to put the luxury type items in their vehicles.
  • bobadbobad Member Posts: 1,587
    Would be a good idea. Not exactly a compelling argument for the Hyundai. Pretty shaddy, actually

    DrFill,

    How do you get that Hyundai competing with Toyota in engineering, quality, features,and value is "shady"? It's a free market, sir.
  • drfilldrfill Member Posts: 2,484
    Settle down! Settle down. Everybody find a seat. :)

    Alright, I'm going to tell you a story.

    There was a unique car made many years ago called the Toyota Supra Turbo. It had 320HP, which was about 500 in today's market, and would beat pretty much any sports car any magazine could put next to it, for value or performance. And from humble Toyota, no less, it was a shock to the industry. It was The One.

    It was so impressive, in fact, Road & Track found need to find it some real competition. Not a direct comparison as to what was better, but a fun little exercise, and a nice way to sell magazines. Put a Supra against a Ferrari 512 and a Porsche.

    Suffice to say, the Supra did very well, but the exotics weren't included to be discredited. And the exotics offer advantages that make a true comparison unrealistic.

    The point is discrediting a vehicle in another class is not a legitimate basis for comparison, especially against a vehicle that hadn't made sale one, nor shown superiority to the vehicles it competes with (HL, Pilot, CX-9). :confuse:

    How seriously should I take a publication that takes a new vehicle that doesn't sell well, and isn't compared to class-competitors, but, in a rather sloppy test study, overmatches the best-selling luxury SUV of all-time? Doesn't the Veracruz seat 7? why would anyone compare it to the RX? The RX is $40k plus! And a luxury vehicle, from a respected marque? The test has little basis in reality, and should be treated as such.

    Nobody replaced their Ferraris for Supras, and the same applies here. This test is more of a disservice to the Lexus than R&T's article. And, having read MT for 20 years, it is far from their best work. :lemon:

    The market hasn't started any stampedes to the Hyundai dealerships since the test. You tell me what value to place on it? What has been the market's reaction? :blush:

    My point is make a legitimate comparison. Take on Pilot and CX-9, and HL, then we'll talk. I've already seen Tucson and Santa Fe get beat by their peers handily. What should be any different with a VeraCruz?

    DrFill
  • drfilldrfill Member Posts: 2,484
    what does a future product has anything to do with current sales?

    We'll need to work on the grammar, but I the answer is pretty simple.

    If you have bad credit, bankruptcy, foreclosure, then want to buy a house because you've had a good couple of years in the stock market, do you expect a 6% rate?

    Hyundai struggles to sell what they have, and when they bring in a new model, the falling sales from their current line-up mitigates the increase. This has been going on for 2 years.

    What is the change?

    DrFill
  • joe97joe97 Member Posts: 2,248
    I've already seen Tucson and Santa Fe get beat by their peers handily. What should be any different with a VeraCruz?

    Funny how you always stretch the truth...
  • joe97joe97 Member Posts: 2,248
    Do you ever look into something more than just the surface? I mean, if I had looked on the surface, I would have came back and told you the same thing for a lot of automakers - glaringly tons more negative marks than postive for almost everyone in the industry, including Toyota. Of course, I know better to see a story behind a story, which is why I am not jumping the gun and writing something when I don't have the full picture. If nothing else, clearly this is a great time for the buyers and no so for the sellers.

    Sales are important but not the total indication for success. My point being, before jumping the gun and writing it off, let Hyundai bring these products (ie. BH sedan and coupe) to the market and then make the judgment how it has penentrated the market, after the market has had time to absorb.

    What's also clear - in your mind, Hyundai has never succeeded, and will never succeed, EVER. So my question is why spend so much time here, we heard you loud and clear the first time and every time after that...
  • bobadbobad Member Posts: 1,587
    Hyundai struggles to sell what they have, and when they bring in a new model, the falling sales from their current line-up mitigates the increase. This has been going on for 2 years.

    You keep switching the conversation to sales, because when you compare the actual cars, you lose.

    High sales has never created a good car, and never will. If we compare the Veracruz, Azera, and undoubetly the Genesis, they are way more car than anything in their price range. They even stack up well with cars costing 25% more. It's just a matter of time until the public is educated to that fact.
  • steverstever Guest Posts: 52,454
    is discrediting a vehicle in another class is not a legitimate basis for comparison

    I can't say I agree. People in the make/model discussions not only compare across classes, many of them activity shop between pickups and hatchbacks or other disparate cars. Lots of posts here have people reporting that they went to the showroom to pick up a new Dodge only to find themselves swayed by a Mazda that the dealer also happens to sell. What seems legit to you isn't an iron clad rule and the manufacturers spend a lot of money chasing conquest sales.

    Edmunds must be selling lots of magazines - we're comparing an '84 Ferrari to a '97 Sedona. Who's got it better, Magnum or Mom? :shades:
  • drfilldrfill Member Posts: 2,484
    I wasn't able to finish my post from before...

    I don't really care what's happening in other discussions. I care somewhat more in legitimate car publications, that people turn to for advice. CR, MT, C&D are relied upon, by millions of people to help make an educated decision. Are we all in agreement on that?

    Just because you sell a lot of cars doesn't mean you make anything in particular. All it means is people trust you with their money. Are we all in agreement on that? Cars are an investment in a company. People rarely invest in companies they don't trust.

    Hyundai is in EXACTLY the same position the domestics are in. Sales are flat, or falling. The reason for that is when times are tough, gas is high, jobs market is weak, people go to companies they trust and know they will get a ROI.

    Toyota has been down for 3 months. But are almost 5% up for the year. Honda is up as much, if not more. Why is that?

    Toyota is competing against itself, and they've been the most successful company for the last 10 years. Not even a close second. They've set records for sales, this year! Tundra. Corolla. Prius. So they can have a slow period, and Toyota gets the benefit of the doubt. They are still well ahead YTD.

    Hyundai doesn't get a pass, because they've been consistently NOT reaching THEIR OWN GOALS, much less setting records. Santa Fe is the ONLY vehicle having a good year, actually helping the business.

    Comparing a Hyundai to a Lexus is beyond folly, to anyone who is objective. Lexus doesn't deserve to be thrown in with Hyundai, on any level. That is disrespectful. Period! Like comparing Lebron James to some kid at the playground. :lemon:

    It would be just as foolish to compare Mitsubishi, or Mazda, to BMW. Hyundai is in that sub-class, until they prove otherwise. 3rd-tier. Below the Nissan/Honda Tier. Below the GM/Ford/Toyota/Chrysler tier.

    Hyundai needs to establish themselves as a non-schitzophrenic company, that can consistently build high-quality, high-value vehicles. The domestics are in the same boat.

    They've both had plenty of chances to save themselves, and haven't gotten it done. This is not news. Now, all of the sudden, Americans are supposed to run to them and buy their vehicles, because they say they're good now? Come on.

    EVERYTHING comes back to sales! That's the name of the game. If sales are flat, or falling, it's your fault. If sales are up, it's your fault. These are not stocks.

    Hyundai probably makes a lot of good vehicles, but the market doesn't care. Why? History. Competition. And poor management. :lemon:

    Targeting Lexus in your marketing is foolish. They need to build their business legitimately. One customer at a time.

    If they were REALLY SMART, they'd forget luxury cars, and build their business. They can't even sell 500k, with 9 vehicles. Lexus is catching them in sales! What does that tell you? :confuse:

    Toyota isn't perfect, but they might have the perfect plan. And that's more than I can say for Hyundai. They're just throwing spaghetti against the wall. It maybe good spaghetti. But it's on the friggin' wall! :sick:

    Hyundai hasn't shown me they can build a successful business. Lexus shouldn't even enter their minds, unless they want to build a luxury marque, the right way. Then please take as many pages out of their book as you can!

    They're making this harder than it really is.

    DrFill
  • joe97joe97 Member Posts: 2,248
    All eyes on you? PLLEEASSSE

    This forum isn't really about bean counting, but, as the title suggests, "is there room in the luxury market for Hyundai". This is not a sales discussion.

    And why can't some of Hyundai's vehicles measure up to Lexus? Actually we all know they already have but it's fine if you wanted to keep hiding the truth.

    All I know is this, Hyundai worked themselves up to the #6 largest automaker in the world, and the perfect candidate for the most improved the past decade. You can keep bash them down but history is not on your side, which is a very good thing. The history I am talking about is when most bashed Toyota and Honda down in the US.
  • drfilldrfill Member Posts: 2,484
    Is there enough room for Hyundai to sell luxury cars, successfully, or just act like they're selling luxury cars?

    Honda and Toyota had plans. That worked. They built their business, and left Cadillac/Mercedes/BMW to their own, until they were ready to do it right. :blush:

    What Hyundai is doing ain't working. It's definitely the cheap way in. Reinforces their nickel-and-dime image. ;)

    There's room in the market for 2nd-rate companies. that's what Infiniti/cadillac/Acura are for. Or 3rd rate companies. That's what Lincoln is for.

    I thought Hyundai wanted to establish themslves as a company to be taken seriously.

    My bad. :P

    DrFill
  • mpuzachmpuzach Member Posts: 635
    ...starts with producing cars that people want to buy. Hyundai is clearly addressing that. As a lifelong automotive enthusiast, I'm proof. Up until very recently, there's no way I'd have even slowed down in front of a Hyundai dealership; I now own a 2007 Santa Fe along with my C6 Corvette and my Santa Fe is one of the best vehicles that I've ever owned.

    When you're a car company that isn't selling enough cars, you must take a close look at how you can sell more of them. In most cases, the answer is to build better cars, plain and simple. That's what Hyundai is doing. Many here may remember when Audi was in the same position. After the unintended acceleration fiasco, they couldn't give their cars away (at least in the U.S.). Their business plan: Build cars so good that they could legitimately compete with Germany's best but at significantly lower prices. The initial results were the 80, 90, 100, and 200. They kept at it with the A4, A6, and A8. They put thenselves back on the map by hitting the bullseye with their cars. As a past owner of 2 recent-year A6s, I'll state emphatically that they've nailed it. Their sales figures confirm it. Fortunately, Audi had the forsight to ride out the lag time for their sales to catch up after the new product came to market.

    MT's Veracruz/RX comparison is wholly legitimate. They didn't compare the 2 companies as wholes, they didn't compare corporate marketing plans, and they didn't compare changes in their executive rosters. They compared the 2 vehicles, plain and simple. Whether or not you agree with the verdict, I couldn't care less. The fact is, MT did the article because Hyundai clearly went after the RX with the Veracruz. Some will think that they succeeded, others will not. The point is that the Veracruz is a much better SUV than it would have been had Hyundai's target been a lower one.

    I hear one person here arguing that Hyundai has no business trying to play in the luxury league. I for one applaud them. They're working a lot harder than much of their competition and if they stick it out, they'll emerge victorious.

    (I remember when, in 1980, no one gave the U.S. olympic hockey team a chance against the Russians. The problem was, neither Coach Herb Brooks nor his players let their competition's record dissuade them from going after them. The rest is history.)

    Reach for the stars, Hyundai!
  • steverstever Guest Posts: 52,454
    Again, I can't agree with all your observations. I quit reading CR after getting steered wrong on a canoe in 1974 (long memories here). I don't read C&D, MT, R&T - those are enthusiast magazines and I don't much care about zero to 60. Over on Inside Line, I'm focusing on the long term test drives more than the concept cars and spy videos or how Edmunds did on the track with the new Charger or whatever. For bang for buck, I read real world reports on forums and the owner reviews here (with the usual grain of salt).

    What's foolish is not targeting the leader (or targeting above and beyond them). What's amazing is how well Hyundai is doing on JD Powers owners reports in light of all the CEO troubles and frequent strikes.

    I think the Azera and Genesis will challenge the luxo segment nicely, but if they want to keep value guys like me on their radar (and away from the Yaris and Fit) they'll need to keep at it with the Entourage or new Elantra hatch.
  • mpuzachmpuzach Member Posts: 635
    What's foolish is not targeting the leader (or targeting above and beyond them). What's amazing is how well Hyundai is doing on JD Powers owners reports in light of all the CEO troubles and frequent strikes.

    I think the Azera and Genesis will challenge the luxo segment nicely.


    My sentiments EXACTLY.
  • volvomaxvolvomax Member Posts: 5,238
    Actually, it IS a sales discussion.

    Can Hyundai convince real luxury car customers to abandon their cars for Hyundai's?
    No. not a chance.
    Can Hyundai capture someone who is trying to choose between a Honda Accord or a really cheap 328i w/ leatherette?
    Possibly.

    That person ISN'T a luxury car buyer.
    He doesn't have the income.
    a person who can afford a Lexus RX isn't going to buy a Vera Cruz.
    It just isn't going to happen.
    Real Luxury buyers are for the most part image conscious.
    Plus, the like the pampered treatment that they get at a lux store.
    When you go to buy a Lexus, you are treated far better than if you go to buy a Hyundai.
    After sale care is far better as well.
    If you bring your Genesis in for service, is Hyundai going to give you another one as a loaner?
    Probably not.
    It is one thing to say "Our car is as good as a Lexus,BMW,Benz"
    It is another to back that up with service and customer care.
  • steverstever Guest Posts: 52,454
    I think the diametrically opposed opinions from some of the buyers in here and most of the sellers is pretty interesting.

    Luxury sometimes is just defined by price (the Jones syndrome?). Or it's something not essential (do you really need headlamp wipers?). Or it's hard to obtain (maybe a Mayback?).

    Fresh fruit used to be a luxury. Now everything is shipped by air or by refrigerated trucks and ships, so no one is impressed by your lunch orange. With credit, almost anyone can swing a loan for a big black Mercedes.

    For the truly wealthy, you have to wonder if they feel like they can impress any of their peers with something as ordinary as a car. They are probably showing off their $400 million dollar yachts and tricked out 757's.
  • drfilldrfill Member Posts: 2,484
    InsideLine does the best comparisons, at this point. By a good margin. :D

    DrFill
  • drfilldrfill Member Posts: 2,484
    Exactly. I don't see any difference here than when VW tried, and failed, at the same hairbrained "business plan".

    At the end of the day, you are driving a Hyundai.

    It's not about the car, it's the company people have to buy into. :sick:

    DrFill
  • volvomaxvolvomax Member Posts: 5,238
    Good point w/ VW.
    The Phaeton was an abject failure.
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