Why Hyundai Won't Unseat Lexus In Luxury Supremacy

Why Hyundai Won't Unseat Lexus In Luxury Supremacy
Fresh off a win as North American Car of the Year it is clear that Hyundai is serious about shaking up the luxury car community with the Genesis sedan.  Widely praised across the industry for a great first effort, the fact is Hyundai is positioning itself much like Lexus did 20 years ago when it made its first appearance in the marketplace.

But can a Hyundai reign supreme in the luxury car ranks?

I have my own thoughts on the question, but the Genesis sedan is good enough that if others don't take notice what Hyundai has accomplished, it could very well be besting the best in second and third generation form.

My working title for this piece was "The Price of Pride - Why Hyundai won't unseat Lexus in Luxury Supremacy" - a title that I think identifies the biggest hurdle Hyundai faces with their emerging luxury car.

The name Hyundai, and peoples perception.

Commented on here by several of you, the truth is those looking for the luxury car experience aren't going to darken the door of Hyundai dealership because of the perception of "cheap."  And since perception is reality, the goal of getting people behind the wheel of Genesis to experience what it is that Hyundai has accomplished must first overcome the stigma created by years of cheap.

In my part of the country, the advertising of local dealers is borderline obnoxious as louder than normal spokespeople hawk their wares. 

Those in the market for a luxury car expect a luxury experience to accompany the purchase.  Buying said luxury car from a dealer that also advertises $149 + a job gets you a car alongside the luxury model really leaves a bad taste in ones mouth.

And sadly, no matter how good the Genesis is, or continues to get, it is the stigma of the rest of the model lineup that will continue to haunt dampening the attempt to break into a market Lexus owns with the ES and GS.

So short of creating a new division, true success in the luxury market will be limited relegating the Genesis to a "last resort" purchase as opposed to a status symbol.

But in this economy, launching a new division is the last thing on anyones mind, and therein lies the true quagmire, a great car saddled with a less than stellar public perception brought on by the rest of the lineup.

So whats Hyundai to do?

I have laid an idea or two, but why not bring their problem to the readers and ask them the question, if you were running Hyundai -  how would you overcome the Hyundai perception in an effort to create luxury car supremacy with the Genesis?

Why not check in with an idea or two, the management at Hyundai graciously thanks you for your ideas.

And of course why you are formulating your response, don't forget the ability to upload photos on the go simply by sending them to mobile@AutoSpies.com

Also, be sure to check out the Detroit Auto Show Gallery - Hey this is the show that awarded the Genesis the North American Car of the Year award, see it from the eyes of Agent 001.


_43LE_43LE - 1/17/2009 11:53:54 PM
+14 Boost
Part of what made Lexus what it is today was the dealership experience and level of customer service they offer, Hyundai will not be able to match that unless they create a new division.


iLexusiLexus - 1/20/2009 3:15:49 AM
+2 Boost
I agree with you 100%. But I also think think that the great history of legendary Toyota also help Lexus what it is today. People know Toyota make great cars, which lure them into buying a Lexus.

People would rather pay $75,000+ for a Toyota Landcrusier than pay $40,000 for a Hyundai Genesis and feel very happy about their decision no questions ask.


Intensity007Intensity007 - 1/18/2009 12:00:41 AM
-6 Boost
I don't care about the 'luxury experience'. The Genesis is GOLD for Hyundai and at the end of the day, owners know they have a LOT of car for the money. That has to make you feel good knowing you have most of the same features of the Lexus - not to mention outstanding build quality, the warranty, etc. for so much less. I hope that Hyundai doesn't follow Lexus in the route they are taking their dealerships. I mean, I personally wouldn't want to sit around a bunch of old people for hours in the Lexus Lounge - eating Bon Bons and sipping high calorie lattes. Talk about boredom! Just change my oil and I'll be on my way bro!


Intensity007Intensity007 - 1/18/2009 12:03:12 AM
+2 Boost
The Genesis is for a Hyundai dealership what a filet mignon would be for McDonalds. Just go in there, grab it while it's cheap and hot and enjoy it!


Intensity007Intensity007 - 1/18/2009 12:05:53 AM
+2 Boost
I used a meat example and I'm a vegan - deboost me!


Intensity007Intensity007 - 1/18/2009 10:47:12 AM
+3 Boost
LOL - BSBB :-)

Most people probably would agree with you bro!


KthornKthorn - 1/18/2009 3:41:08 PM
+1 Boost
Intensity007, Our customers don't "hang out in the lounge sipping latte's", we put them out in loaners, in droves... When they return, they're out of here in seconds not minutes, and they climb into a sparkling clean car with the seat, mirror, and steering wheel positions unmoved. If the car comes in for an unscheduled service visit (rarely), the car is fixed right the first time, and the cost of periodic maintenance is likely less than every other car they've ever owned. You personally may not care about the "luxury experience", (which I truly doubt because everybody likes to be respected and appreciated) however it is on the mind of EVERY prospective customer in this segment. Humans are creatures of habit, we tend to do the same things the same way over and over again. We judge our experiences by the "bests and the worsts", and when comparative shopping, we gauge "this" experience to our last one, and if the last one was at a Lexus dealership, then there is a very good chance it was the best shopping experience they've had. Say what you want about the Lexus product being soul-less, spongy, "badge engineering" etc... but make no mistake about it, Lexus is the "Benchmark" for the "luxury experience" and they will never yield that "top" spot to any manufacturer. There is not a manufacturer on the planet today that is as committed to being on top as Lexus is, and that commitment is shared by every single link in the chain. Having worked for almost every luxury car maker in the world I can tell you the European brands have an entitlement mentality, this was never more evident than in 1990 when Lexus launched and handed them an overdue ass whipping. And since then Lexus has never looked back. As someone else has pointed out somewhere on this thread, if Hyundai is to be successful in their attempt to dethrone Lexus, they must rebrand the merchandise. There isn't a kid in jr. high school right now dreaming about owning a Hyundai someday. This is in no way a slam on their product, dealer network, etc... it is a verdict in the court of public opinion. For most people in the luxury segment, their car is an extension of their ego and/or personality, and right now Hyundai is not synonymous with an image conscience consumer. Hyundai can either spend hundreds of millions of dollars trying to sway public opinion, or they can rebrand their merchandise which is probably as expensive, but easier on the average fragile ego in the luxury segment. People who own half million dollar homes will never park a Hyundai in their driveway unless one of the kids is driving it. They will never pull up to the spa, clubhouse, or valet attendant driving a Hyundai. These people wear the labels of their clothing on the outside, and they would rather drive a car they don't like, than to have to explain to one of their contemporary's why they chose the Hyundai over the blank. I will say this though, if there is a company that has a shot at Lexus, it is Hyundai, more so than any oth


Intensity007Intensity007 - 1/19/2009 1:28:29 PM
-7 Boost
I don't see high school kids itching to get their hands on a Lexus either. Especially when they can get a real luxury car for the same price (as in Mercedes-Benz and BMW). Thanks for the laugh bro!


PorschinatorPorschinator - 1/19/2009 2:20:23 PM
+4 Boost
Bow down to Kthorn's wall of text!!!


KthornKthorn - 1/19/2009 6:39:16 PM
0 Boost
A real luxury car for the same price? Now that's funny. About the only compliment I can give mercedes benz is they make one hell of a truck. Other than that nothing about that company is impressive. oh wait, the $20,000 in trunk money on the CL and CLK is impressive. And thank YOU for the laugh. I take it from your post you own one, so sorry.


PorschinatorPorschinator - 1/19/2009 8:04:58 PM
-2 Boost
Nothing impressive about MB? Whose kidding who?


Agent001Agent001 - 1/18/2009 12:23:41 AM
+4 Boost
Smokefreak,

Seems you're partaking a little too much in the smoke...

I didn't write this article, 00J did.

Pass the Dutchie,

001 ;)


Intensity007Intensity007 - 1/18/2009 12:30:34 AM
0 Boost
I agree about Lincolns looking cheaper. I'd take a Genesis over ANY Lincoln. I saw a Genesis today going through a parking lot and the tight body was beautiful. It looked as if it were carved out of a single piece of steel. It looks so much better the the bloated Lexuses.


Intensity007Intensity007 - 1/18/2009 12:35:39 AM
-3 Boost
addition: It looks so much better the the bloated Lexuses AND style-challenged Lincolns. I was behind a Lincoln MKX and it doesn't even have LED tail lamps. Lincoln better step their game up very quickly if they want to get noticed. The ugly new face is such a turn-off for me. They could use LEDs for everything and the only way I'd take one is with a steep discount.



Intensity007Intensity007 - 1/18/2009 12:24:24 AM
+1 Boost
I think Hyundai is taking a fresher approach to luxury which will appeal to my generation. Over time, their lineup will have more and more 'best value' leaders that younger people who are interested in luxury can afford. All of their models are moving upscale and giving people what they want for much less. I connect with what Hyundai is about and as time goes on, more and more people are going to buy cars for their value and not for the brand name. Don't go soft Hyundai - go hard and ROCK OUT!


g2okg2ok - 1/18/2009 1:18:09 AM
+1 Boost
While their cars are getting better, Hyundai has 2 issues that Toyota/Lexus never did:
1) Hyundai's dealer network is just not good, which won't cut it when the cars are $25-30k. People expect service that at least matches Toyota and Honda levels.
2) Hyundai is not cheap anymore. What's sticker on the Genesis ... guessing $30k. That's not less money. Can't take chances at that price. It's more probable a Chinese owned Buick brand will challenge Lexus in 5-10 years.

I see the local Hyundai store has Genesis parked in front, but these dealers are focused on the lower end of the market and just make the whole picture look very sad. I still think it would have been better to put resources into building a better Sonata first to get Camry-Accord buyers. That would build the brand in terms of value. I would not pay over $20k for a Genesis as it stands today.



wooodwoood - 1/18/2009 11:02:04 PM
+4 Boost
I agree with you regarding the better Sonata to get the Camry and Accord buyers. Genesis should be a different brand if it truly wants to go head to head with Lexus/Infiniti/Acura. On the other hand, if value and tech from the Hyundai Genesis will eventually trickle down to cheaper models, its a whole new different ballgame. Imagine what Toyota achieved with the Lexus without spending on a different dealer network.


BobWBobW - 1/19/2009 11:21:07 AM
+2 Boost
Have you driven a current Sonata? In the past year I've been given Sonata's twice as rentals, a four and six-cylinder model, and they are surprisingly close to what Honda and Toyota offer in the class. Solid body, smooth ride, decent handling, good acceleration for the four and very strong for the six, interior materials are nice and the fit and finish is exemplary. After driving each of them several days it's a car I would recommend to anyone in the market for the mid-size segment.
I think Hyundai can make a very good living selling Genesis models to the typical American luxury car buyer--someone who places a premium on value and isn't worried about what badge is on the grill. I've seen a couple Genesis sedans around and they look great (I first saw one parked in front of the local dealer and from the rear at first glance I thought they had a used 5-series on the lot, a second look as I passed revealed a modern, good looking luxury car at a Hyundai store!)
I don't think they will ever capture much of the solid gold luxury market for the reason of pride--a Hyundai will never have the prestige of the Euro-brands or Lexus. Frankly, I wouldn't purchase a Genesis over a 5-series, A6 or E-class (there aren't any Lexus models I would purchase--high quality cars, just nothing that grabs me), but I believe there are plenty of buyers for the Genesis at Hyundai dealerships.


RNeekChicRNeekChic - 1/18/2009 1:50:12 AM
+4 Boost
I personally don't have an idea for how Hyundai to get out of it's "cheap streak" but...I do think that the main problem is pricing. Most ppl that search for luxory cars like benz and bmw know how much they pay for their car and that is taken into account by ppl. People know Hyundai is a great deal in terms of price and what you get, but that's part of the problem. People put the label ultimate luxory on things that cost A LOT regardless of what the object is and if it's worth it. The fact is that something is expensive will put that item/brand on a different level. So...with that said, if Hyundai want to be top tier luxory brand, imo they need to charge like the other brands do but....they first have to build something that is worth the price of other top tier luxory brands.


NKP5NKP5 - 1/18/2009 4:15:40 AM
+2 Boost
If Hyundai is serious about playing with the big dogs, this is what they need to do:

1. Develop an entirely new luxury brand with a different name. Don't offer a car starting less than $35,000. Keep things simple as well. Just start out with 2 sedans: A mid-size one for $35K, and a larger, ultra-luxury sedan for $55-60K. Don't dabble into 3 different SUV's, crossovers, convertibles, or coupes just yet. Most people still purchase 4-door sedans.

2. Build 4 state-of-the-art dealerships in the biggest markets- New York, Chicago, Los Angeles and Houston, just to get things started. These dealerships would need to be un-rivaled in terms of style, decor, technology, comfort, etc. The more extravagant, the better.

3. Staff is key. Visit the Trump Towers in Chicago. Everyone who works there is extremely respectful, kind, knowledgeable, and welcoming. Raise the bar for customer service. No more receptionist texting her girlfriends while customers who paid $35K plus for a car wait at the front desk....

4. Interior furnishings on the vehicles must be top grade. You are trying to establish your name as a player in the extremely competitive upper vehicle segment. Don't skimp out on anything. Even your base $35K vehicle should have a suede headliner, real wood, thick floormats, top grade leather, etc, etc. People do notice these things. Everything should LOOK and FEEL expensive.

5. Draw styling inspiration or ideas from vehicles like the Maserati Quattroporte, the previous generation Jaguar XJ, or Mercedes-Benz CLS. Not the Lexus LS460, or any Lexus for that matter....

Sure this sounds impossible, and maybe it is....But Hyundai has no choice but to create a seperate brand and disassociate itself from it if they want to compete with the likes of Mercedes, BMW, Audi, Lexus, Infiniti,etc.


Agent00JAgent00J - 1/18/2009 9:04:10 AM
+2 Boost
Finally someone offering up some suggestion for Hyundai rather than arguing the merit of the Genesis.

Good insight and suggestion, certainly would create a new perception following your suggestions.

-00J


commander104commander104 - 1/18/2009 3:54:35 PM
0 Boost
In addition, I see Hyundai as The Audi's Apprentice. Audis used to be composed of some un-reliable though solid cars and they have now put "old luxury on notice". Hyundai is here to put new luxury on notice. They should try to partner with Audi and tag team to take out the old guys. I suggest that Hyundai target Acura, Infiniti and Lex ES buyers while Audi hits everthing else above that.


kpaxxkpaxx - 1/18/2009 7:33:30 AM
-1 Boost
Hyundai won't have a problem beating lexus at lexus own game. lexus is more about marketing than anything. If Hyundai wanted to it would be easy for them to setup luxury brand and remarket like toyota!


VISOVISO - 1/18/2009 9:50:28 PM
+1 Boost
Interesting observation Commander. However, there is one problem. Audi has been building luxury and sports cars for over 100 years starting with the Horch brand that was the epitome of luxury and snobbery during the early 20th Century Europe to the end of WWII. So, one has to keep that in mind when discussing Audi which sometimes seems to be lost on American automotive enthusiasts. The first Audis were dominating European motorsport as far back as 1910. If anything, BMW is really the youngest of the three German premium pedigrees. Lexus is just a baby still. One also must consider Jaguar who has a long history that it has lost in the modern era. Audi in a sense is on its second renaissance that started in 1995 and seems to really be clicking on all fours (Quattro that is) right now.


KthornKthorn - 1/18/2009 2:00:37 PM
-5 Boost
Huu your statement confuses me. I'll agree that a Lexus is less like a Toyota than the Infiniti is to Nissan. But to say "some" Lexus cars are not rebadged Toyota's would be a more truthful statement. If you are going to call yourself a "Luxury" car maker than that's all you should make. The only company that has stayed true to that statement is BMW. So far the rest have sold out. Porsche/VW/Audi, MB/Chrysler, Lexus/Toyota, Jag/Ford, Audi/VW, etc....


mitchatlexusofmarinmitchatlexusofmarin - 1/18/2009 3:04:53 PM
-1 Boost
NO LEXUS are rebadged Toyotas. Not one. What an idiotic statement. Rebadged means- exactly the same vehicle with a different badge. Is that really what you think? And then act as if you know cars? Are you kidding me?? Cmon.


KthornKthorn - 1/19/2009 8:48:17 PM
+3 Boost
Chuck, the only "retard" on this entire site is you. Time and time again you post some of the most ignorant statements, most if not all defy true logic. If you choose to ingnore the fact that every luxury car manufacturer with the exception BMW has at one point or another cross platform shared with their counterpart, then keep on posting your drivel.


StarStar - 1/18/2009 3:15:21 PM
-4 Boost
Hyundai is indeed getting close to tier 2 where Lexus and the other pseudo luxury Japanese boxes have been stuck for years in spite of their attempts to dethrone the real luxury German brands that reign supreme in the auto world.


_43LE_43LE - 1/18/2009 9:35:27 PM
+2 Boost
Remember Star, at you not with you...


4ron4ron - 1/18/2009 3:27:57 PM
+1 Boost
Hyundai doesn't need supremacy ... just equality in the public's eye. No question. Hyundai's products are greatly improving in design, features, and quality. Look at the reviews (Consumer's Report, Consumer Guide, the leading magazines, etc.)and reliability surveys. Yes, public perception is their biggest challenge. That takes continuous improvement (look at renderings of the upcoming Sonata model)and a strong marketing message. The new Genesis models (coupe to come in the Spring)are the first step. In addition the "sales experience" in the dealerships will have to go to a new level. Not impossible by any means. Give them some time. The Koreans are very persistent.


LexSucksLexSucks - 1/18/2009 4:45:16 PM
+1 Boost
The entire premise of this article is flawed. Who says that Lexus enjoys "Luxury Supremacy"? America?


TheRealDrFillTheRealDrFill - 1/18/2009 5:42:01 PM
+2 Boost
Hyundai has licked the balls for many years, and now has decided to build their cars with care, and not on the cheap
You do what Toyota, not Lexus, did.
You build good cars until you become synonymous with good cars
Not have a nice 3-4 years
It can take 15-20 years to change your reputation
They don't want to wait, much less invest, in that necessary step
Hence, sales down for a 4th straight year

When you skip ingredients, the cake doesn't rise
There are no shortcuts in the car business
But Hyundai has ALWAYS taken the short way, haven't they?
DrFill


answeranswer - 1/18/2009 7:35:08 PM
+2 Boost
All the Hyundai naysayers aren't saying anything the Lexus naysayers said 20 years ago.

Hyundai made a great car in the Genesis. You can't for certain say that they will replace Lexus, but at the same time you can't say that they won't.

20 years ago few imagined what Lexus would become. 5 years ago nobody imagined the very real possiblity of the big three going bye-bye. In the automotive world it's pretty damn hard to make predicitions.

That's why it's best to keep an open mind.


BeRealBeReal - 1/18/2009 9:40:22 PM
-1 Boost
DrFill what are taking about? Hyundai sales are down for 4th straight year. Hyundai sales had been going up the past 10 years straight. Hyundai did not become the 5th largset automaker by sales with US sales going down.


TheRealDrFillTheRealDrFill - 1/19/2009 1:59:27 PM
+1 Boost
Research my man, research!
Look up HyundaiUSA sales numbers for the last 4 years
Share has crept up slightly but sales have not increased, or have fallen, for years now
DrFill


VISOVISO - 1/18/2009 10:09:04 PM
+3 Boost
The Genesis is a home run for Hyundai, and it will do very nice things for Hyundai in terms of the public perception of the brand. However, there are two issues here being fused and wrongfully so. The Genesis represents Hyundai's improved quality and its ability to produce a highly respectful vehicle. The Genesis is a luxury car by all definition, but Hyundai is not a premium brand. VW has tried to go up market with very mixed if not poor results. You have to start as a premium brand in all respects to be seen as a premium brand. Toyota did the smart thing by creating Lexus and differetiating it from the plebian Toyota brand. Yet Lexus is still finding its place globally. If Toyota badged the LS as a Toyota it would wind up as the Phaeton. And there is nothing wrong with the Phaeton other than the bagde because of the brand perception. Hyundai must stop at the Genesis as its flagship as the Genesis is the perfect competitor to th ES and the Avalon. If Hyundai wants to go upmarketand upscale, it will have to create a new luxury brand as Toyota did with Lexus or buy a free standing premium brand and go from there. But there are not too many free standing true premium brands out there. Globally, the premium market is dominated by Audi, BMW, and Mercedes-Benz (>1 million in volume)with Lexus the only premium brand to possibly play with the big boys eventually. Infiniti, Acura, and Cadillac are simply regional luxury brands with Cadillac the only with any kind of pedigree to it. Jaguar has potential as a global premium brand due to its history and pedigree, but it needs lots of TLC and committment - it needs some kind of second rebirth almost. So, for Hyundai the road is quite tough, but it is big enough to pull it off. But not as Hyundai.


lexworldlexworld - 1/18/2009 11:15:36 PM
0 Boost
It is what it is. By the time Hyundai catches Lexus,Lexus cars will be flying or driving upside down. Ever seen The Minority Report? It's a hint of Lexus Supremecy in the near future. Technology wins hands down guys. It's the gift given to the Japanese. I'm not mad at'em...in fact I'm happy is a lark and glad to be a part of the family.


BeRealBeReal - 1/18/2009 11:46:14 PM
-1 Boost
sound good lexworld so why NASA use Hyundai fuel cell Technology on the Space Shuttle and not Lexus (Toyota). Hyundai doing alot more than many think.


Intensity007Intensity007 - 1/19/2009 10:23:25 AM
+2 Boost
I don't hate Lexus as it's only a shinier Toyota but what gets me is the owners that think they have something better than a Mercedes Benz or BMW. No matter how good Lexus is, they will NEVER have the history and prestige of the aforementioned marques. A Lexus will always rub off as a fake Rolex to me. Hyundai on the other hand, was the underdog for many years and they've learned from their mistakes. They will outdo Lexus and it's just a matter of time. My generation doesn't want a brand that was just born out of the Japaneses desire to exude European and German refinement. We'd rather have a fighter that worked hard and doesn't come with all of the pretense and ego that Lexus has created for itself. Deboost me all you want. I'm just speaking the truth for MY generation. Lexus will NEVER be accepted all over the world but mark my words, Hyundai will - on their own name alone. Hyundai. Real. Look at all of the latest blogs on the Genesis and Hyundai period. People are talking. People are waking up. Apparently somebody is 'Thinking about it'.


NItePhireNItePhire - 1/19/2009 11:27:36 AM
0 Boost
What exactly is your generation any way?


Intensity007Intensity007 - 1/19/2009 11:36:08 AM
+1 Boost
response to NItePhire: Generation X. Thanks ChuckG37!


AnthonyAnthony - 1/19/2009 4:29:11 PM
0 Boost
So you hate Lexus on a perceived notion that their owners think they are better than BMW and Mercedes, so you want people to buy Hyundais and want them to think that their cars are better than Lexus? Number one, that is bias, number two that is hypocritical, and number three that is called being a moron.

Did you forget all the years that Toyota was the automotive underdog? Are you not old enough to remember when Lexus was the underdog luxury brand? By most aspects Lexus is still the underdog luxury brand. Hyundai gets much respect for engineering a car as well-equipped as the Genesis is at its price point. However they get no sympathy for doing almost exactly what Toyota did with the Lexus LS nearly 20 years ago. The difference? Toyota had the business savvy to create a new brand before asking people to plow down more money for a more upscale product.


XYZZXYZZ - 1/20/2009 2:40:59 AM
+1 Boost
"No matter how good Lexus is, they will NEVER have the history and prestige of the aforementioned marques. A Lexus will always rub off as a fake Rolex to me." LOL! history will only get you so far. oldsmobile had a history 2nd only to m-b, and where are they now? some people may have an exaggerated 'appreciation' for history, but practical folks will always also ASK, "what have you done for me lately?" inability to give a good answer is partly what killed oldsmobile. as for lexus being like a fake rolex, if you compare the reliability of the electronics and more importantly, the drivetrains, TOYOTAs, say nothing of Lexuses, are at THE TOP of the heap. automobiles are meant to transport people reliably and with no fuss or muss, NOT to adorn a driveway. in this respect, toyota/lexus products are the best REAL cars, everyone else is 2nd or 3rd rate in comparison. or FAKE autos/rolexes if you will.




Intensity007Intensity007 - 1/19/2009 10:24:58 AM
+3 Boost
correction: I don't hate Lexus as it's only a shinier Toyota but what gets me ARE the owners (and lessees which most Lexus drivers are)


Intensity007Intensity007 - 1/19/2009 11:43:36 AM
-1 Boost
Earlier in this post, someone mentioned that the title of this article is DUMB. I totally agree bro! It's biased and will be proven false over time.


Intensity007Intensity007 - 1/19/2009 11:59:23 AM
+3 Boost
Remember the commercial with the Azera and the Lexus LS460 where it ended with: "... however, the Lexus CAN parallel park itself, and the Azera can't, but at half the price, you can easily have someone park the Azera for you..." I think Hyundai should do the same type of advertisement for the apparently "Holier than Thou Lexus dealership experience". It would be so funny to see an ad where they show how pretentious and uptight Lexus dealerships are. If you don't believe me, walk into one and see for yourself. Hyundai should do a commercial to shatter the misconceptions about luxury and prove once and for all what the NEW luxury is. While Hyundai is not Bentley, Rolls, Maybach or the like, it can definitely create cars with equal and/or better quality, content, warranties, technology etc. as Lexus of all people. I can't believe how stupid Americans are to buy into mushy marketing. Go Hard Hyundai. You're not Mercedes or BMW but you can definitely create a shinier version of yourself and give the people what they want without the pretense.


Intensity007Intensity007 - 1/19/2009 12:02:26 PM
+2 Boost
In a few years, I see the Genesis brand as one that will take a HUGE chunk out of Lexus sales from day one. Right now, they're just proving that they can do it. Mark my words: Within 5 years of continued success, Hyundai will create the Genesis brand and Lexus will have to just recognize that it's just a Toyota and will always be that.


NItePhireNItePhire - 1/19/2009 12:14:39 PM
+1 Boost
It seems to me to Hyundai has only two choice inorder to make this thing work for them. They can try and recast the Hyundai (which is the harder of the two) by dropping the Accent and every other thing that cost under 29 grand base price. They could take the Azera and move it up one rung on the ladder to a base price of 29999.99 up to about 37 grand, more of a competitor to the ES and make the Genesis more of a competitor to the 5 series. Better handling and driver dynamics for start have that at around 39 starting price and end around 50. Then a 7 series competitor as well starting at around 50 base price. Keep the Veracruz but change the interior appointments to better match the 40plus range of CUV's. Allow Kia to take over the family section of the market that Hyundai now holds. OR the could spend some cash creating a new chain for Genesis and use a 3,5,7 and X5,X7 competitors along with the so called Lexus showroom experience. And yes I do know that the X7 is not in existence.


Intensity007Intensity007 - 1/19/2009 12:15:42 PM
-2 Boost
If you work for Hyundai and are reading this, relay this to your advertising department: Create a commercial where a Toyota Yaris pulls up to a Lexus dealership for an oil change and then gets redirected to a Toyota dealership 40 miles away by a snobby clerk. As the Yaris owner is leaving, show an impatient LS460hL driver blow his horn at the Yaris driver to move out of the way so he can get in. Show the face of the Yaris driver as he leaves the dealership feeling somewhat shamed and disappointed. Then show a Hyundai i30, Accent or Elantra driver in the same scenario - except this time, have the smaller Hyundai and the Genesis pull up to the service bay at the SAME time. Show the Genesis driver motion for the other Hyundai driver to go first. Then end it with a line like, "at Hyundai, we believe that true luxury is taking care of family..." (or something like that). I could see a similar thing done once Hyundai creates the Genesis brand to show an i30 owner getting the same white glove treatment as any other customer.


PorschinatorPorschinator - 1/19/2009 2:18:33 PM
0 Boost
ONE CAR DOES NOT MAKE YOU A LEXUS KILLER!!!! A no brainer...


TheRealDrFillTheRealDrFill - 1/19/2009 2:51:32 PM
0 Boost
Intensity
You might need counseling
DrFill


CynicalCynical - 1/19/2009 4:44:19 PM
+2 Boost
A lot of people have commented on Hyundai setting up a separate brand name for an entirely separate line of upscale vehicles. Now, I believe that the marketing for the Genesis points towards a "same luxury quality, cheaper price" ethos, but has anyone heard from Hyundai on whether they are planning on making MORE upscale vehicles (excluding the Genesis coupe, which I believe is just a derivative of an existing vehicle)? What if the sole point of the Genesis line was to try to raise the image of the rest of the product line (effectively raise Hyundai's brand perception), so that Hyundai could compete better with Toyota? What if Hyundai has absolutely no intention of ever entering the pseudo-lux market, and instead, focusing on creating a better Hyundai brand?


BarackBushBarackBush - 1/20/2009 1:18:04 AM
0 Boost
The Genesis is superb however Lexus has nothing to worry about. If anyone needs to worry its Infiniti, Acura. The Genesis has a V-8 that is more powerful than any sedan they offer with better MPG.


XYZZXYZZ - 1/20/2009 2:56:32 AM
+2 Boost
hyundai should have learned the FREE lesson offered by vw at their great expense with the phaeton: the BEST luxury car they can build, is still handicapped when labeled with a logo long associated with CHEAP CARS.

if they really expect to compete directly with lexus, there is no shortcut for following the toyota game plan. a whole NEW brand. a whole new system of dealers (carefully screened so only the best qualify). a whole new buying experience. all combined for a WHOLE NEW IMAGE.


Intensity007Intensity007 - 1/20/2009 3:56:04 AM
+1 Boost
I didn't mean to get some of you ladies panties in a bunch. Just relax girls and stop reading about Hyundai. This article should be irrelevant to you since you have nothing to be threatened about. You're Lexus owners and fanboys, remember? You are superior to anything less... although it's funny how you ARE taking notice of Hyundai. Why even bother clicking on anything Hyundai since they must not be any better than Chevrolets? It's amazing how it doesn't take much to get into your heads. Reverse psychology? DrFillMyNutsInYourMouth.


indoctrin8edindoctrin8ed - 1/20/2009 6:48:20 AM
+1 Boost
Ya'll are missing the point.

Hyundai needs to rebrand themselves for high end, just like Toyota->Lexus did, Honda->Acura did, Nissan->Infinity did, and continue to make the "baseline" good and better (As they have done).

I am rolling my eyes on why they would produce such a nice car with the Genesis and then not miss an opportunity to launch a high end brand like the others have done and proven it works.



civicdrivrcivicdrivr - 1/21/2009 6:16:50 PM
+1 Boost
Hyundai HAS to launch a new brand. Proof?

They don't even put a Hyundai logo on the hood of their "flagship" sedan. People within the company must have said, "ya know, I probably wouldn't buy it if it had that badge on there".


KrazeedddKrazeeddd - 1/22/2009 12:54:40 PM
+1 Boost
So pick up the Saturn dealers for a song, solve GM's Saturn dilema (heck GM might pay Hyundai to take them), and gain a limited number of dealers known for not being obnoxious. For the cost of new signs (the Saturn name has to go) you have a stand alone upscale brand. The no-haggle theme would serve an upscale brand well. Add a couple badge engineered SUV's like Lexus and it would work.


chingchongxitchingchongxit - 2/4/2009 2:17:56 AM
+1 Boost
In the spirit of "Hyundai," this is probably the most economical way: (1) transfer all the small and cheap Hyundai cars to Kia. Then, (2) change the stupid Hyundai name. Get rid of that name. Nobody can pronounce it anyways. Even their own commercials pronounce it wrong. It just sounds so stupid in English. And the spelling, looks ridiculous. Consult an ENGLISH-SPEAKING company, and get a new name already. It's like living in the US and insisting on keeping your name when your name is, "Ching Chong Xit." (3) Convert existing "Hyundai" dealerships to the new upscale brand.


AntsoneAntsone - 10/16/2011 2:26:02 AM
+1 Boost
Both makers are not on my shopping list but Hyundai IS rebadging the Lexus LS as their own. Ford and GM ae now claiming to being up to par with Toyota and Honda. Hyundai makes no claims and I think it's smart on their part. But as far as technology, ride quality and customer service Hyundai has a lot of work ahead of them if they are in direct competition with Lexus. BMW and Mercedes are always going to be a world dominating auto maker with Audi and Lexus trailing not too far behind. Hyundai in my eyes is more in the infinity and Acura league as far as "luxury cars" in America. Kudos to them in bringing affordable cars in this era of our economic crisis. Toyota is going to curve ball Hyundai with the scion line in the near future, kindly funny how these companies work but what ever works, works. Until then I'm personally not impressed until Mercedes and BMW have their cages rattled from Asian and American auto makers. Drive safe and within your means


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