The weak US economy is helping to boost early sales of the new Hyundai Genesis premium sedan, company executives say.
The top-of-the-line V-8 version of the Genesis has a base price of about $38,000. Hyundai initially identified the target buyer of the Genesis as an owner of a mid-sized or large mass-market car who wants to move upscale.
But John Krafcik, Hyundai Motor America's vice president of product development and strategic planning, said at a press event here last week that the Genesis also is appealing to budget-minded owners of costlier luxury cars.
"That group, in these economic times, seems to be bigger than we expected," Krafcik told Automotive News. "We are seeing a lot of people who say, 'I didn't really get good value from the premium brand and the $3,000, $6,000, $10,000 or $15,000 extra I had to pay.' "
The Genesis sedan went on sale in late June. Production of a coupe is scheduled to begin in December. Next year, Krafcik said, Hyundai expects to sell as many as 50,000 of the cars to U.S. buyers.
Hyundai identifies the primary competitors of the Genesis as the Chrysler 300C, Lexus ES 350, Pontiac G8 and Cadillac CTS. "Image" competitors include the Lexus GS series, Infiniti M series, BMW 5 series and Mercedes E class.
To address consumer skepticism about Hyundai's move into the premium market, the $80 million advertising campaign for the Genesis will feature engineering test results that favorably compare the car with its competition. The tests cover such measures as acceleration, braking, cornering, interior sound and exterior finish.
"We are trying to overcome what we know are prejudices toward the brand," Joel Ewanick, Hyundai Motor America's marketing vice president, said in an interview. "So we are providing the burden of proof and laying out those key elements we know are important to consumers."