Is There Room in the Luxury Market for Hyundai?

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Comments

  • toyetoye Member Posts: 351
    Couldn't have said it better
  • fintailfintail Member Posts: 58,498
    From all accounts I've seen, the suspension tuning on those cars isn't fully baked yet.
  • fintailfintail Member Posts: 58,498
    Quite a few symbols have a positive correlation to enjoyable experiences in real life.

    If symbols weren't important, newcomers wouldn't have their own symbols...
  • bobadbobad Member Posts: 1,587
    From all accounts I've seen, the suspension tuning on those cars isn't fully baked yet.

    Do take a drive in a 2010! It's free, and I promise you won't get cooties. ;)

    I'm not talking so much about symbols as symbol worship. Even when the car beneath the symbol has long since become average, the symbol retains undeserved value.
  • fintailfintail Member Posts: 58,498
    Has there been a suspension change for the 2010s?

    I don't think the average salesman would appreciate how I'd like to drive the car :P

    I think "average" is subjective, as is symbol worship. People like different things for different reasons.
  • captain2captain2 Member Posts: 3,971
    Even when the car beneath the symbol has long since become average, the symbol retains undeserved value.
    OK BUT then you ought to be to accept the reverse as also being true-
    - even when the car beneath the symbol has long since become exemplary, the symbol retains an undeserved reputation -
    A continuing problem for Hyundai IMO, particularily as it attempts to gain acceptance into the ranks of luxury car mfgrs.
  • backybacky Member Posts: 18,949
    Yes, there was a suspension tweak for 2010 (sedan). Some details on it in the Genesis sedan discussion, maybe even here going back a few pages.

    If you are a serious buyer, I don't think they'll mind you taking the car for a thorough test drive. If you're "just looking", maybe not.
  • fintailfintail Member Posts: 58,498
    I will google it. Maybe I will wait til a new generation for a less weirdo front and BMW sides. :shades:

    When I drove my current car the salesman didn't mind if I flogged it around a little (hard turns, full throttle acceleration, etc) , and I was even able to take it out on my own...but I think I got lucky there. Although pulling up in a pristine MB does seem to do wonders for getting drives. I wouldn't be the average Accent test driver taking it on a 30mph run through the suburbs.

    Maybe H needs to take some of its Genesis-selling dealers through an e-commerce and PR course
  • steverstever Guest Posts: 52,454
    the suspension tuning on those cars isn't fully baked yet.

    Just for grins, here's a nice tour of the 2011 Kia Sorento's suspension. Parts is parts. :)

    2011 Kia Sorento: Suspension Walkaround (Straightline)
  • bobadbobad Member Posts: 1,587
    Parts is parts.

    Why am I suddenly hungry for chicken? :surprise:
  • steverstever Guest Posts: 52,454
    Go luxury and get the Cornish Game Hen.

    (aka a "young" chicken - it's all about the badge, right? :shades: ).
  • houdini1houdini1 Member Posts: 8,356
    Has anyone ever seen a LIVE Cornish Game Hen? :)

    2013 LX 570 2016 LS 460

  • toyetoye Member Posts: 351
    yeah Chicken Little!!!
  • bobadbobad Member Posts: 1,587
    yeah Chicken Little!!!

    OK, no midget chicken jokes. That'll get you tossed.
  • toyetoye Member Posts: 351
    Again more and more proof of the direction that Hyundai is moving!!
  • toyetoye Member Posts: 351
    To be fair their are a couple of reviewers in the media that aren't impress with the Equus when they saw at the Detroit Auto Show

    One person thought that the Equus didn't have any personality and it looked like Hyundai picked different parts of other luxury autos.

    Another thought that they were going all wrong on how they were going to market the Equus under the Hyundai name and reminded on VW failed experience with luxury.
  • bobadbobad Member Posts: 1,587
    Another thought that they were going all wrong on how they were going to market the Equus under the Hyundai name and reminded on VW failed experience with luxury.

    Yes, we've had that read back to us about dozen times. ;)

    But I agree the Equus needs a slight facelift for the American market. It wouldn't be a good thing for Genesis to look more upscale than Equus, which it does handily at the moment.
  • backybacky Member Posts: 18,949
    VW big mistake was introducing the Phaeton to the USA at prices comparable to those of premium-brand cars such as MB. Hyundai is not making that same mistake with the Equus (or whatever it will be called here). It will be comparable to premium sedans, but in typical Hyundai fashion will be priced considerably less than those cars. Hyundai will also not repeat the other major mistake VW made with the Phaeton, i.e. try to sell a gas-gulping V12 engine at a time when gas prices are high and going up.
  • toyetoye Member Posts: 351
    From News Blaze

    Even some luxury products can be marketed as being just good enough. For instance the Hyundai Genesis, a luxury sedan, has been directly compared to Lexus, but is much less expensive.

    "If Hyundai can convince you the Genesis, is substantially the same as Lexus with essentially the same features, why pay thousands more for the Lexus? Hyundai is not claiming to be a prestige brand, but they're claiming the Genesis is just as good"

    Dr. Robert P. Leone
    Marketing Expert
    MJ Neeley School of Business
    Texas Christian University
  • captain2captain2 Member Posts: 3,971
    If Hyundai can convince you the Genesis, is substantially the same as Lexus with essentially the same features, why pay thousands more for the Lexus?
    A big IF - think that is a really really hard sell - a Hyundai branded product vs a Lexus branded one???
    Even if you can bite into the 'substantially the same' you still have the whole perception issue. Because Lexus is undeniably a 'prestige' brand and Hyundai is not, they cannot be perceived as the same. One mfgr makes luxury cars, the other doesn't. It's kind like the guy that ran out an spent a lot of money on a Buick Lucerne, and his neighbor that spent more on an ostensibly identical DTS, one owns a luxury car and the other doesn't.
    Now, whether or not the Lexus (or that Cadillac) is 'worth' the extra money or not is a different conversation.
  • backybacky Member Posts: 18,949
    As Ronald Reagan used to say, "Well, there you go again!"

    One mfgr makes luxury cars, the other doesn't.

    Incorrect. Both Toyota and Hyundai make luxury cars. The difference is, Toyota has a separate brand, Lexus, to market some of their luxury cars in some countries. Hyundai doesn't have a separate brand for its luxury cars. But that does not change the fact that both automakers make luxury cars.

    So if someone goes out and spends $40k on a Genesis 4.6, and his neighbor goes out and spends $55k on a Lexus GS 460, they both own a luxury car. The main difference is, the GS buyer spent about $15k on the Lexus badge.
  • captain2captain2 Member Posts: 3,971
    yeah, there I go again - precisely what this particular forum is supposed to be about BTW, if you'd rather talk about nothing other than Hyundai warm-and-fuzzies I'm sure there are some forums that'll work better for you.
    yes the difference IS that Toyota does have a separate brand for its luxury cars and a good example why Hyundai won't have a luxury car without doing the same.
    You seem to be stuck on a 'luxury car' being no more than some summation of gadgets, bling and specs. If that was truly the case than ANYBODY could make one - an assertion that to me is preposterous......
    Let's see - the G8 is supposed to reappear as a Caprice in the near future - I just can't wait to run out and buy my well optioned LT Caprice, and run circles around all those Gen 4.6s out there. And, I'll bet that it comes in at less money too. A legendary luxury brand that 'Chevrolet' just like that other legendary luxury badge you call Hyundai. ;)
    BTW, unfortunately a badge premium would also be something that true 'lux' cars have in common.
  • backybacky Member Posts: 18,949
    If you can't tell the difference between a G8 or Caprice and the Genesis 4.6, there is no hope for you.

    But try to tell Toyota that this is not a luxury car. Note, no "luxury" badge on it.

    http://www.batfa.com/new_car_toyota_crown_majesta.htm

    And YOU talk about someone being "stuck" on something? That is the best laugh I've had in a long time. :D
  • captain2captain2 Member Posts: 3,971
    how Toyota -or any other brandname - is perceived OVERSEAS has little to do with what we perceive it as here in the good ole USA.

    get real
  • tenpin288tenpin288 Member Posts: 804
    how Toyota -or any other brandname - is perceived OVERSEAS has little to do with what we perceive it as here in the good ole USA.

    Captain2, where in this discussion/thread title does it say this discussion only encompasses the US market? :confuse:
  • backybacky Member Posts: 18,949
    Questions for you: How popular were minivans in 1990? How popular were SUVs? What were the top 3 selling cars in 1990? How many vehicles did Hyundai sell in the US in 1990 (and which models, and what were their MSRPs)?

    The point? Markets are not static. They change over time. Buyer preferences change. What worked in the late '80s for the J3 for introducing luxury cars into the US market might not be the only way or best way to do it today. Brand perception might not be what it was in 1990, or 2000, or even 2005. (Refer to recently-posted articles re buyer attitudes towards brands changing.)

    And yes, there is a world beyond the US. And people buy luxury cars out there.
  • captain2captain2 Member Posts: 3,971
    Markets are not static. They change over time. Buyer preferences change. What worked in the late '80s for the J3 for introducing luxury cars into the US market might not be the only way or best way to do it today
    and you know - you might be absolutely right, time will tell - sooner or later we'll know if the Gen sedan is the next LS or the next Phaeton. We surely don't know yet, do we? The current Gen sedan is priced as it is really competes in the 'upscale sedan' segment, the real test will more likely be in the Equus - imagine a Hyundai with a $50k pricetag! As it sits right now, I'll put my money on the consistency (and the brand consciousness) that the American consumer has shown us for 50 or even 100 years - and tell you also that, as a Hyundai, there is no room in the 'luxury' market for a Hyundai branded product.
  • toyetoye Member Posts: 351
    There is plenty of room in the luxury market for a Hyundai MADE product
  • captain2captain2 Member Posts: 3,971
    There is plenty of room in the luxury market for a Hyundai MADE product
    I have no problem with this - with one caveat - there is plenty of room in the 'luxury' market for any product that doesn't happened to be labelled as a Hyundai and sold at Hyundai dealers, IMO. Not a cut at Hyundai or FTM the Genesis mind you - only a comment on how ridiculously brand consciousthe American autobuyer has shown to be.
  • backybacky Member Posts: 18,949
    ... time will tell - sooner or later we'll know if the Gen sedan is the next LS or the next Phaeton. We surely don't know yet, do we?

    That is the most reasonable and logical thing you have ever said in this discussion. Yes, the truth is, it is too early to tell if Hyundai's approach to the luxury market will succeed long-term. But the fact that you are at least open to the possibility that it MIGHT succeed shows you have an open mind. I had my doubts about that. ;)
  • fintailfintail Member Posts: 58,498
    The Genesis will certainly fare better than the Phaeton in this market - it already has. I don't think anything can create the shockwaves sent by the first LS.
  • captain2captain2 Member Posts: 3,971
    The Genesis will certainly fare better than the Phaeton in this market - it already has
    the Phaeton, as a 'relabelled' A8 was one helluva a car and certainly priced as such. A 'bad' label for sure as VW has taken its hits lately. Sales volume for any vehicle as those kind of prices ($70k) should obviously be much lower than those priced in the $30k-$40k higher volume upscale sedan market.
    If indeed Hyundai is intent on a $50k Equus (or whatever they choose to call it) then I would suggest sales would naturally fall - they are playing to a much smaller audience.
    There certainly was some 'audacity' attached to the LS - and also its share of naysayers at that time. As good as the LS was (and as good as it continues to be), I don't think it would have made nearly the impact it did had Toyota chosen to label it as such and further sell it at 'common' Toyota dealerships. They correctly understood the American penchant for soft boulevard cruisers as well as understanding the need for brand differentiation. MB and BMW I think were caught with their drawers down, and to this day I don't believe that they have really matched the service, reliability, and even mystique levels that Lexus established.
  • captain2captain2 Member Posts: 3,971
    for all the hundreds of posts I've made in this forum, I challenge you to find even one that talks about the Genesis negatively - the Hyundai name and the reputation that comes with it , yes - but their recent crop of products, no.
  • toyetoye Member Posts: 351
    Hyundai has already said their sales expectations for Equus are low meaning they want to be able to show the US consumer and Media that they are capable of building an automobile worthy of the 7 Series and S Class at a price 10s of thousands cheaper. I've seen and sat in the Equus last summer and it commands respect! Much more conservative than the Genesis. In this case Hyundai main goal is to continue to change the perception of its past image.
  • toyetoye Member Posts: 351
    But you talk about Hyundai as IF they haven't had their recent crop of products, that they are still the company you knew back in the late 80's when you were in Korea.
  • captain2captain2 Member Posts: 3,971
    yep I believe the American consumer does have an often too long memory, and is going to slower to forgive than what the last 5 years (or so) of better products will allow.
    Think of what Toyota (and Honda) had both done in the middle late 80s, both living down crappola products foisted on us in the 60s and even 70s, but by the time they established their 'luxury' brands both their reputations were sterling. Hyundai IIMO is not at thast point - yet. It shouldn't take the 15-20 years that it took Toyota and Honda - but probably something more than the 5 years (or whatever) it's been.
    Indeed, their current product line would seem to indicate tat they are well on their way.
  • toyetoye Member Posts: 351
    Think of the crappy american products in the mid 70's that Ford was pushing..example the Ford Mustang, Mercury Bobcat and Pinto all had the same body shape and was a hatchback. My neighbor had the Pinto and it wasn't even air tight brand new and was stuck with it. Don't get me started with the gas tank!!!
  • fintailfintail Member Posts: 58,498
    The Phaeton is still sold in Europe, and a few of them do move, it is seen as an individualistic choice compared to the three mainstays and it is a bit cheaper spec for spec. That was VW's biggest sin, they priced it way too ambitiously in this market. They didn't follow the Lexus pricing strategy...luckily for H, it did with the Genesis.

    I do agree had the LS simply been sold as a fancy Toyota with no different badging or sales experience, the impact wouldn't have been the same.

    Lexus has virtually no "mystique" outside of this continent (and virtually no mystique for actual enthusiasts anywhere), and is a very minor player in the market that developed this segment, Europe. I suspect the S and 7 outsell the LS on the continent by 50:1, maybe more. The swoopy L does a lot of things right, but not everything.
  • backybacky Member Posts: 18,949
    And that would serve... what purpose? :confuse: And if I did find such a post... what then? I am sure you would have an appropriate explanation.
  • bobadbobad Member Posts: 1,587
    yep I believe the American consumer does have an often too long memory, and is going to slower to forgive than what the last 5 years (or so) of better products will allow.

    And I believe Hyundai learned from Toyota and Honda there are no substitutes for quality and reliability. Hyundai is also smart enough to fast track Toyota and Honda's long, arduous journey, dispensing with the middle 20 years. They have already surpassed Nissan and Honda in sales, so they are doing something right.

    Give people a little credit. Most of us are smart enough to know Hyundai products have changed, and new models don't share any DNA with recent models. Most people aren't followers, and they respect ambitious young leaders.
  • captain2captain2 Member Posts: 3,971
    Most people aren't followers
    perhaps the cynic in me, or as history tends to support - I would tell you that - most people ARE followers and they also tend to buy what everybody else buys and/or what they think their neighbors would 'approve' of. The reason , perhaps that cars, in this case, like Camcordimas outsell things like Sonatas by such a large margin. Think about it - if everybody else KNEW -like you seem to- that Hyundai had improved to such an extent - then why are they plopping down so much money on something else? IMO the problem is not really in the cars, as much as it is the baggage that Hyundai products still carry.
  • bobadbobad Member Posts: 1,587
    perhaps the cynic in me, or as history tends to support - I would tell you that - most people ARE followers

    I know you are speaking for yourself, but you would be surprised at how many people think for themselves. I would say "people are cautious" rather than impune them as being mindless followers.

    It's still early. It took Toyota 40 years to get where they are. How about giving Hyundai another 4-5 years to get their new line established? It will take about that long to shake the outmoded beliefs and let the cars stand on their true merits.
  • captain2captain2 Member Posts: 3,971
    How about giving Hyundai another 4-5 years to get their new line established? It will take about that long to shake the outmoded beliefs and let the cars stand on their true merits.
    As it relates to this topic - I think that Hyundai would have to have at least the quality and reliability perceptions that the J3 had back in the 90s (and even still today) BEFORE they could reasonably expect any acceptance into the the fellowship of luxury manufacturers. Whether they can expect that kind of change in that short of time period certainly remains to be seen. But we are talking about today - and not necessarily 4 or 5 years from now.
    Unlike our friend backy that believes apparently that any really well optioned automobile can be a luxury car, I think that there is substantially more to it than that. It does have a lot to do with brand perceptions and badge prestige - both areas that I believe that Hyundai lacks any positive impact in TODAY - despite a reasonably good first effort at it - the Gen Sedan.
    But I also believe that that whole separate dealer, new badge issue is the only way that Hyundai can attack the whole 'prestige' thing - a failing of the American autobuyer perhaps - but a very real one.
  • sanjaysdcasanjaysdca Member Posts: 269
    how Toyota -or any other brandname - is perceived OVERSEAS has little to do with what we perceive it as here in the good ole USA.

    get real


    Well Well we are center of the world again

    Actually for Hyundai's or any other maker How it is percieved in China and India is MORE important thne how it is percieved in good ole USA. Thats where the growth is.
    That is why Buick still exists...very desirable in China a market expexted to be biggest auto market in 5 year time frame

    Hyundai us extremely well regarded/respected & positioned well in South Asia. I am not sure of China
  • backybacky Member Posts: 18,949
    Unlike our friend backy that believes apparently that any really well optioned automobile can be a luxury car,...

    Tell you what... you don't put words on my fingers, and I won't put words on your fingers, OK? I find it difficult to believe that after all this time you still don't understand my position.

    I think that Hyundai would have to have at least the quality and reliability perceptions that the J3 had back in the 90s (and even still today) BEFORE they could reasonably expect any acceptance into the the fellowship of luxury manufacturers.

    Let's assume for discussion that is true. I assert that Hyundai already has the quality and reliability perception of the J3 today--especially wrt Toyota... no, probably BETTER than Toyota at this moment in time. IMO the quality and reliability perception of the J3 has slipped since the '90s. That is backed up by statements from e.g. CR that actual quality has slipped. Also Hyundai has compared very well against the J3 in recent quality and reliability studies, e.g. the latest JD Power IQS in which Hyundai was higher ranked than Toyota, Honda, or Nissan (actually higher than everyone but Lexus, Porsche, and Cadillac--all luxury marques. And since the IQS is basically an opinion survey of car owners, that substantiates the assertion that Hyundai is already on a par or better than the J3, and even luxury brands, in perception of quality. On reliability, Hyundai ranks ahead of Nissan and just below Honda and Toyota, as of early 2009 (April Auto Issue). So they are doing well against the J3 on that score also. And according to another JD Power survey from 2009, the APEAL study, the Genesis sedan took top honors in the midsized premium car segment:

    Easily the largest defeat of the survey was left to the midsize premium car segment where the new Hyundai Genesis took top honors. Right behind were the Jaguar XF and BMW 5-series. ... Clearly, this shows that Hyundai has what it takes to play with the big boys. In the 2010 survey, will we see the upcoming Equus unseat the S-class?

    http://www.autospies.com/news/JD-Power-APEAL-Study-Shows-Tides-Are-Changing-Hyun- - - dai-Genesis-VW-CC-Take-Top-Spots-46037/

    All this without a separate badge for Hyundai's luxury cars, without separate dealers. The 89,000 people surveyed by JD Power had no problem perceiving the Hyundai Genesis as being superior to the likes of the BMW 5-series, in fact tops in its class.
  • captain2captain2 Member Posts: 3,971
    Hyundai us extremely well regarded/respected & positioned well in South Asia. I am not sure of China
    and if this is the case then Hyundai would obviously have an easier time gaining acceptance as a luxury brand than it does over here. And certainly, there is more potential volume in the 2 most populous countries in the world than here - but that is all hardly the point.
  • backybacky Member Posts: 18,949
    ...but that is all hardly the point.

    Uh... why isn't it the point, or a big part of it? Today's "market" is a world-wide one. And the USA isn't even the biggest part of that market.
  • captain2captain2 Member Posts: 3,971
    I assert that Hyundai already has the quality and reliability perception of the J3 today--especially wrt Toyota... no, probably BETTER than Toyota at this moment in time
    you may 'assert' what you wish - but show me anything factual that supports this.
    I can at least look at CRs reliability ratings and mfgr ratings that do indeed show Hyundai improving, but still lagging behind Honda and Toyota. As far as perceptions I can point to overall sales figures and the fact that J3 brands still outsell correspondent Hyundai products despite being more expensive. If this doesn't point to a perception issue, what else does??? :confuse:
    As far as putting words 'on your fingers' I'm not - I'll look up the post if I have to - but you are the one that listed several qualifications of what you thought made a 'luxury' car - things like ", standard leather, RWD, fancy audio systems, high HP V8s etc. If I accept that (which I don't) than anybody can do that - true???

    PS I have no problem with silly JDP telling me that the Gen Sedan is the 'most appealing' premium sedan. I personally happen to agree It is definitely NOT the most appealing luxury sedan, however - that honor would go to something on a level that the Gen Sedan isn't perhaps the LS , a S, or a 7 series. Heck, not even JDP (or CR FTM) can call it a luxury car - maybe because it isn't ;)
  • backybacky Member Posts: 18,949
    So when you are faced with the facts, you turn a 180... from a discussion on perceived quality and reliability, to sales numbers. But then, your numbers are wrong! Hyundai does NOT lag Honda in sales, nor Nissan--so it outsells 2 of the J3. Hyundai Group is the world's fourth largest automaker. And right at this moment, they are the world's third largest automaker and lead Toyota in sales (since Toyota's sales in several countries including the US and China are pretty low right now).

    GM leads Hyundai in sales. Does that mean people perceive that GM vehicles have better quality and reliability than Hyundai vehicles? Or could it mean GM has greater production capacity and a larger distribution network than Hyundai?

    You misstated my position on what a luxury car is. It is not, as you said, any well optioned car. I do define a luxury car based on the attributes of the car, not of the little plastic or metal badge on the trunk lid. You look at things external to the car, such as the brand name and how fancy the dealerships are that sell the cars. Two much different views.

    Funny though that JD Power is "silly" now. They weren't so silly a few days ago when you used one of their surveys to support your opinion. It appears JD Power is silly only when someone else cites them. ;) But I am glad you have no problem with JD Power telling you that the Genesis is the most appealing premium midsized sedan. Note however that JD Power's term for "luxury" is "premium". The 2009 APEAL study has the S Class as the top Large Premium Car. So JD Power puts the Genesis on the same level as cars like the S Class and LS.
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