Hyundai: We Haven’t Ruled Out Creating A “Lexus” Premium Brand

will March 30th, 2007 12:40 PM Link

It’s an idea. I do really like Hyundai, no other carmaker has improved so much 10 years. I think a luxury brand from them has possibility- but perhaps not yet. They aren’t in the mode to do their own things, they still ape too much from others. Granted Lexus got started stealing everything they could from Europe, but I’d like a better fate for Hyundai. They should add some supreme creativity to the segment.

Plus, their design sense has been developing. They’ve been trying to solidify a wholly new Korean way of looking at things. As is, the Genesis concept is a mismash of ES, LS and Camry elements. If Hyundai tried to do something completely unsafe and totally new, it would absolutely be a giant success. They just need their icon to be the foundation for this thing first.

Matt March 30th, 2007 12:45 PM Link

Price has always been selling point for Hyundai. However, it has also been a shortcoming in perceived quality. Their difficulty will not be creating the products but properly marketing to entry-lux buyers that their car is the “sexier” choice. If they continue to improve quality and maintain their extended warranties, it is possible. However, it seems like a crowded segment to attempt to enter. I would recommend a focus on the now pricy accord/camry territory with a bulletproof no frills sedan (similar to early 90s accord) and fill the gap with a solid car to build their rep. That is exactly what Honda did before Acura entered the picture and it seemed to work for them. Hyundai needs to be patient and remember what they are in the eyes of the consumer. No one wants to drive a wannabe.

redzonda March 30th, 2007 12:49 PM Link

Of course, it makes total sense to create a luxury brand for Hyundai, given what happened with VW with its attempt to go upmarket with the brand. The Genesis will be the highest priced product for Hyundai, because anything higher in MSRP will not be justified in the marketplace. If Hyundai decides to create a larger, more luxurious car (e.g. Equus), then it definitely needs to create a new brand with more cachet and totally different experience from yore regular Hyundai dealer experience.

As for the Hyundai as whole, totally pleased with the product offerings since it leaves the low-end segment for the Chinese automakers to dominate in the coming years.

Now, I just wish Hyundai could build a sports car or foor-door coupe(3.8 V6, 300BHP, or 4.6 V8 350-380BHP) off the Genesis concept RWD platform to compete against G37, CLK, BMW 6-series, and Audi A5. This could be the beginning of an interesting chapter for Hyundai.

Reilly Brennan March 30th, 2007 12:54 PM Link

Redzonda,

I think your coupe dreams have been heard. We’ll have more news about this in our next issue of WINDING ROAD, live on 4/23.

The Stig March 30th, 2007 1:34 PM Link

Hyundai is doing the same thing Toyota and Honda did - but they are doing it much faster. I have a lot of respect for that company for all the reasons mentioned above. However, I’m not sure the time is right to create another upmarket brand. I’m not sure they’ve earned the credibility they need to make a success out of it. Toyota and Honda were successful at it because they had a long running track record and reputation to fall back on. Not knocking Hyundai - they’ve come a remarkably long way - but IMO they need to change more minds first.

Shady March 30th, 2007 4:30 PM Link

At the end of the day, it all boils down to the product. Creating a separate premium line is all well and good, but for Hyundai - still an up-and-coming carmaker, for all intents and purposes - to actually pull it off in the wake of Lexus, Infiniti and Accura, they must offer nothing short of outstanding. And by outstanding I mean something that’s enjoys levels of luxury, performance and - most importantly - refinement in terms of quality and design that exceeds what the big guns from Germany and Japan already have available. They have to get it right right at the get-go. Simply matching Lexus at a cut-price simply won’t work. Your average well-off consumer has probably grown jaded over the 20 years or so that have passed since Lexus (and Infiniti) offered the first viable alternatives to the Teutonic giants. So anything from Hyundai that’s short of class-leading will induce little more than a oh-no-not-another-luxury-brand yawn. I’d rather have a luxury product from Hyundai that matches a comparable Lexus on price but exceeds it in performance, design and quality, than to have a virtual Lexus clone for the price of an Avalon. Product is the name of the game.

Don March 30th, 2007 5:07 PM Link

Good for Hyundai. No other automaker has come so far in as little time.

I’m sure Toyota will be watching this with true anxiety.

Did anyone honestly think we’d see this after driving the Excel 20 years ago?

Kevin March 30th, 2007 6:01 PM Link

Hyundai has come a long way and should actually become the “lexus” brand instead of creating a new name.
Since its recent purchase of Kia motors, Hyundai could easily just make Hyundai the “up market” name and keep Kia the sporty image name plate.

This is the best move in my opinion and would save the need for more names and brands that people really dont need. In this very aggressive marketplace cost is key, and by keeping current name brands would effectivly do this for Hyundai.
As we all know a chevy is as much a pontiac as it is a buick as it is a GMC.
None of this makes you want the car more or make it more desirable. Rather a good car made by a strong company with a track record in product reliability and styling is what sells cars.

Currenty I think Hyundai should be more focused on make the brand qith more unique styling istead of copying so closly the Toyota and Honda names.

Adam Maciejewski March 30th, 2007 7:18 PM Link

I absolutely support Hyundai venturing into the higher echelons of the automotive kingdom. What better way than to create a premium brand? But will the new brand have the panache to go against the big boys? (Infiniti and Lexus from Japan, BMW and Audi from Germany) It’s not the product I’d worry about (Hyundai has come a long way in a short time), but the monetary risk involved. Would people buy into it?

Austin March 30th, 2007 9:54 PM Link

GM should sell them the Olds brand. (After driving my Dad’s new Azera, I can say they certainly build a better Buick than GM.)

Or maybe they should just buy Jag, Mercury or Saab.

I’d wonder if they could’t even fix Chrysler.

But, yes, they could so a luxury brand. Although I sort of wonder why bother given the generous content in their upper end models.

I might be more include to grab some low end brands and move Hyundai further up market. Have Kia in the middle. And then do something funky, fun and low cost for a new entry level.

Plymouth!

Johnny Rocket March 31st, 2007 12:31 AM Link

Not another one…

Johnny Rocket April 1st, 2007 1:52 AM Link

Well, Hyundai may not spank Lexus in reliability or cabin design, but there’s always a place ahead of Acura–everyone else is.

snipsnorty April 1st, 2007 7:58 PM Link

I think im in the majority when I say within the past 10 years, hyundai has made great strides with respect to product supply, portfolio, and reliability. With that said, the areas that I think need a little work are product design and originality. I bought a used 2000 Elantra with 32,000 miles on it 4 years ago and it has been near bulletproof to 153,000 miles and counting. Because of it, Hyundai has gained my respect and admiration as well as a good customer. I bought my mom an 2007 Accent and expect a near flawless ownership experience. Hyundai once had a well deserved reputation for poor and deplorable quality. That reputation is now misplaced. However, Hyundai must find the right time to execute this sort of plan and I dont think it is now. American cynicism is thick and it will be hard for Hyundai to cut through it so fast. Take your time Hyundai.

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Sandy Block April 2nd, 2007 10:22 AM Link

Recently in a 2007 Hyundai Azera Limited. I was blowen away. What a nice car. I like the style of it better than this “Gensis” prototype - but yes, Hyundai is nothing to snicker at any longer.
I just don’t think that Hyundai Service Depts and customer treatment are on a par (yet) with Cadillac & Lincolns, of which I have 1 of each, and get treated like some kinda Diplomat every time I go. Free Town Car (or DTS) loaner, free breakfast, free newspaper, hospital clean shop, and a full explanation of everything that was done. But, IF anyone can do, Hyundai can do.

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