Can Hyundai Gain a Foothold Against Lexus and Acura with the new BH?

For years, Hyundai's followed the Toyota and Honda blueprints as it grew its business in North America. Now, it's copying the Lexus and Acura blueprints by launching it's own luxury model.

Its called the BH. An 8 cylinder luxury car the Korean car company plans to sell in Korea in the first half of next year, and here in the U.S. In the second half of '08. Hyundai hasn't given a target price range for the BH, but my gut says Hyundai will look to price it in the rang of $45,000 to $55,000.


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EL34EL34 - 3/21/2007 12:24:25 PM
-7 Boost
Can Hyundai Gain a Foothold Against Lexus and Acura with the new BH?

Yes.


Agent009Agent009 - 3/21/2007 1:33:57 PM
+4 Boost
Funny, they said the same thing about Lexus when it first went on the market.


Will_Will_ - 3/21/2007 12:32:25 PM
-2 Boost
HMMmm...

It has the side profile of every other car in its competing segment.


S4cabriofoxoneS4cabriofoxone - 3/21/2007 1:00:56 PM
-1 Boost
And that side profile looks uncannily like the last-gen G35 sedan, even with the camo.


mitchatlexusofmarinmitchatlexusofmarin - 3/21/2007 5:26:21 PM
0 Boost
It looks like an Infiniti side profile Will. Don't you think?


jt716jt716 - 3/21/2007 12:33:20 PM
+1 Boost
It actually looks good


AMGC55AMGC55 - 3/21/2007 12:52:34 PM
+1 Boost
ummm the VW pheaton didnt do well niether did the RL ... What makes this thing so special... when i can just get a Bmw 550i


mitchatlexusofmarinmitchatlexusofmarin - 3/21/2007 5:27:02 PM
0 Boost
Price will make it special.


S4cabriofoxoneS4cabriofoxone - 3/21/2007 12:56:16 PM
+1 Boost
FIFTY GRAND FOR A HYUNDAI!

NOT IN MY LIFETIME!

A definite NO!


answeranswer - 3/21/2007 12:58:10 PM
0 Boost
It truly depends on the vehicle itself.

If this is a market segment Hyundai wants, they have to start somewhere.

More choice, more competition equals better products from everyone.


indifferentindifferent - 3/21/2007 1:08:34 PM
-2 Boost
Depends on what the car competes with. Have it compete with a GS/5/E? then there is no way it can survive. Make it compete with the LS/7/S for 55 to 60 grand and they will have a winner. Hyundai is a crappy company right now, but for half the price of one of those high end cars, im sure they will have a lot of buyers


Will_Will_ - 3/21/2007 1:12:39 PM
+2 Boost
I guess as a Lexus and Infiniti fan, I should be for this, being that Hyundai is a very mainstream economy car company now all the sudden wanting to go upmarket. However somehow, I'm just not. Is it 100% certain that this is going to be badged as a Hyundai? That will be a fundamental mistake. Different brand values requires a different badge if not solely for brand image purposes. I don't doubt that this will be a fantastic car for what it is, but it all means nothing wearing the wrong badge. The Phaeton is the clearest example of that. Clearly Hyundai has not studied Lexus, Infiniti, Acura, and VW well at all.




Agent009Agent009 - 3/21/2007 1:43:03 PM
-1 Boost
Hyundai is changing, they have already publicly admitted to positioning the Vera Cruz in between the Highlander and the RX350 to steal sales from both. They also are planning a larger SUV by 2009.

Their object is exactly the same as what Lexus had when it entered the market against the Germans. Provide a similar product at a cheaper price and you will steal sales from the lower end model of the luxury marquee. This got them the foothold they needed. At that time reliability was an unknown for them thus not a factor.

It worked then and will work again. There is someone always wanting something similar for cheaper.


S4cabriofoxoneS4cabriofoxone - 3/21/2007 1:51:02 PM
+2 Boost
"...they have already publicly admitted to positioning the Vera Cruz in between the Highlander and the RX350 to steal sales from both."

That doesn't mean it WILL steal sales from the RX. Prestige is what's key here. Had the RX been badged as a Toyota, it definitely would not be selling as well as it is.

"Their object is exactly the same as what Lexus had when it entered the market against the Germans."

The difference is, Hyundai isn't making a spin-off luxury brand. Toyota didn't sit back lazily and produce the "Toyota LS400," they created a new brand- Lexus.

Hyundai, on the other hand, has no plans of a new brand. As of now, the Hyundai name isn't what I'd call prestigious. If they want to sell a luxury car, it would be smarter for them to start a new, more sophisticated luxury company, in which they could build an image from scratch and market it as a true luxury car.

Look at VW and the Phaeton. Although it complicates things that Audi was already there, they tried to make a luxury car with the VW badge. It was a superb vehicle, but it still failed miserably.

I state again- Toyota, on the other hand, made a new brand. It has taken the US market by storm.


Agent009Agent009 - 3/21/2007 2:05:04 PM
-1 Boost
Well Lexus had no image when it started other than a new marquee from Toyota.

IMHO if Hyundai wants to get serious it needs a luxury marquee nameplate.

The top end Vera Cruz has most of the features of the lower end RX350, thus it has the potential to usurp sales from it.


Agent009Agent009 - 3/21/2007 2:10:15 PM
0 Boost
VW failed because they went to the top end first, (stupidly) with no middle ground. How can you explain a mid 30K Passat then the next step is a $70-100k Phaeton.

In the US VW has never been know as expensive cars like abroad. The lineup is too limited here and the nameplate is stereotyped due to such. Hyundai may fair better because it is hitting for a much more main stream segment of the market. The lower the price the more potential for a sale.




Designer1Designer1 - 3/21/2007 2:02:11 PM
-3 Boost
It looks like the new Altima from the side.


no1listensanywayno1listensanyway - 3/21/2007 2:51:39 PM
-2 Boost
You would have to get your head checked for paying that amount for a Hyundai.


PlanBPlanB - 3/21/2007 3:58:18 PM
+1 Boost
Although I will admit Hyundai is a vastly different company from even 5 years ago, I think it'll be awhile longer before anybody looks at this car as a real option. Unless... Hyundai does what it does best. Undercut competing prices in the size range and remind everybody about that 10yr/100,000 mile warranty. They just might turn a few heads, you never know...


LexusLexus - 3/21/2007 4:01:21 PM
+3 Boost
Lexus, Acura and Infiniti is not the only that should be worrying about this. The German and American brand should worry too.

Most people are not going to pay up to 50K for a Hyundai, when they can get a Lexus, BMW, Audi, Acura, Infinit, and the MB instead. But there alway someone who want to be different would buy this.


answeranswer - 3/21/2007 4:10:20 PM
+2 Boost
You do need a premium sound system in this class, I wonder who Hyundai will partner with?

Harman Intl. (BMW, Lexus, Merc)

B&W (Jag)

Bose (Infiniti, Caddy)

B&O (Audi)

Who does that really leave for Hyundai to pair up with?


BMW995BMW995 - 3/21/2007 4:33:13 PM
+2 Boost
This car, sized somewhat between a G35 and a M35/45 can be a success, IF it is priced right. If it were a separate luxury brand (ie, Lexus, Infiniti) they could charge a higher price for it. It it stays a Hyundai the price has to drop (imagine a previous Lexus owner going in for service and driving up next to a Hyundai Excel - sorry to be a snob).
Now, is this car going to have a V6 or V8, or both? My guess is that if it were a V6 (and branded a Hyundai) it would have to be priced $3K to $4K less than an equivalent G35. If it had a V8 it would have to undercut the M45 by $5K to $6K.


izfuneyizfuney - 3/21/2007 4:50:35 PM
+2 Boost
I think somebody already mentioned it here... The jump to 50 - 60k is huge given that they have nothing between 25k and 50k.

While we may all look back at toyota/Lexus in the 80's or even Merv/BMW in the 50's/60's in the US market, the game is different now. Lexus made its name with its tier one service, the Germans based on past (pre war) prestige. Hyundai needs to sell more then the car to convince people its more then another Phaeton.



tecnopolistecnopolis - 3/21/2007 4:51:48 PM
+3 Boost
I can see why Toyota is keeping an eye on Hyundai, they are relentless!


trd1trd1 - 3/21/2007 5:17:52 PM
+2 Boost
i bet you that this car is not going to be any more then 40k, because no one will pay over 40k for it. but i wonder how the v8 is going to turn out.


germeezy2germeezy2 - 3/21/2007 5:51:03 PM
+2 Boost
They should start a luxury Division like Acura or Lexus or Infiniti, me I prefer my luxury cars with heritage.


VinnyPVinnyP - 3/21/2007 7:04:13 PM
+2 Boost
Yea, I always thought that Kia was the company Hyundai brought out to get rid of their old, crappy engines.

So logically, Hyundai would be the higher end maker. But since their old name has such cars as the Accent, and Elantra badged to it, Im not to sure they can do to well in the luxury car market. Well not along side Lexus and Acura. If anything they will always be known to compete with TOYOTA and HONDA. Guarentee this big car will take aim at the Avalon IMO.


S4cabriofoxoneS4cabriofoxone - 3/21/2007 10:57:04 PM
+3 Boost
Speaking of Lexus...

I've been considering the LS460 more openly for my wife. Whether or not the RWD issue matters on this car remains to be seen- but the equipment levels on the various packages are stupendous. Although she vehemently denies wanting a Lexus, I believe this is one of the best (if not the best) options for her. She wants a luxury sedan, not a performance sedan.

In just one $11,000 package on the SWB LS460, you get...

• Navi (real-time traffic, touch screen, she has touch screen now and loves it)
• ML audio w/ hard drive
• Self-park
• Park sensors (redundant, yes)
• Power door closers, power trunk
• Power rear seats, with power rear headrests and memory
• Rear vanity mirrors
• Power rear sunshade
• Heated steering wheel
• Heated/cooled front and rear seats
• Headlamp wasers
• Rear-side airbags

I'm out of breath! It offers all that, plus floor mats, cargo net , trunk mat and wheel locks for only $11,087! That brings the total to $72,802, which is $4-5K less than what her A8 would be. I really don't care about the price at this point, but it just adds to the appeal.

I'd say the reasons to buy the A8 over it are the AWD, the sleek style and the handling. LS460 is probably faster, though-- you just can't hear it.

One thing I'd have get to make the LS look better, if we got it: 18" Teleios rims. Here they are:

http://www.lexus.com/models/LS/accessories/index.html

But I'll definitely add it to our list.


dicardicar - 3/22/2007 12:07:15 AM
0 Boost
Is it the same as the start of Lexus/Acura/Infinity?

No.

Hyundai is the copy of Mitsubishi several year before and now.

Mitsubishi is not bad.

However, Hyundai is not in the same position as the Japanese car of 15 years ago.



chuck717chuck717 - 3/22/2007 11:14:56 AM
+1 Boost
55k (Hyundai Corp)>> Throw in a view lot and granite counter tops we may have something here?


zorbeezezorbeeze - 3/22/2007 11:41:43 AM
+2 Boost
First off Acura competes more with Volvo and Saab not with lexus and BMW.
Second this car might be able to compete with Acura, Volvo & Saab, it all depends on the final product, but if i were too guess i'd say no.
Third in this price range brand image plays a huge role, a lot bigger than most people think. And noone will want to pay 55K for a car that is linked to an Accent or Elantra. That's why Toyota created Lexus. A 55K Toyota will not sell.
Hyunday should have gone the Jap way and create a new luxury division. By not doing that they'll loose more money, in the development of this car, then they make.


S4cabriofoxoneS4cabriofoxone - 3/22/2007 8:49:34 PM
+1 Boost
"Hyunday should have gone the Jap way and create a new luxury division."

Exactly what I said.


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