Is Hyundai Replacing Lexus As The Understated Luxury Brand?

Is Hyundai Replacing Lexus As The Understated Luxury Brand?
Conspicuous consumption has taken a back seat during these hard times, and an apparent beneficiary of that is the Hyundai Genesis, introduced last year as an affordable upscale sedan.

Starting at $32,250, it has drawn buyers who until recently might have opted for more costly prestige cars, such as the Mercedes-Benz S-Class (stickered at $89,350 and up), says John Krafcik, president and CEO of Hyundai Motor America.

Such a downshifting in consumer preferences may be tied to today’s public disdain of perceived excesses, from Wall Street bonuses to corporate jets. If there’s a time for flaunting it, it’s not now.

So, the Genesis becomes an understated luxury for many affluent consumers who want to avoid overt displays of extravagance and status, Krafcik says.

“A huge number of Genesis buyers are coming from premium brands,” he says at the auto show here, where Hyundai unveils its Nuvis concept cross/utility vehicle.

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kpaxxkpaxx - 4/15/2009 2:23:22 PM
+9 Boost
The genesis is a very nice vehicle but it is still a small step behind when compared to the like of the Luxury cars coming out of europe!


Agent009Agent009 - 4/15/2009 2:49:46 PM
-2 Boost
Actually that is exactly how Lexus started out by flying under the radar. Actually the skeptics of Hyundai sure sound a lot like those that dismissed Lexus in the 90's, too bad they can't see the error in their ways.

However the obvious success of Lexus as a brand now makes it on par with other high end vehicles. So is has become high profile to the average person.

So for those who want to fly under the radar Hyundai is it.


B7FANB7FAN - 4/15/2009 4:10:07 PM
-1 Boost
thats true I think i will stick to my BMW's


dlindlin - 4/15/2009 9:57:03 PM
+2 Boost
I wonder why this site keeps posting something so stupid.

~Great job, 009!~


Agent009Agent009 - 4/15/2009 2:50:14 PM
-11 Boost
I prefer to call it "encouraged discussion"


david999david999 - 4/15/2009 3:21:33 PM
+5 Boost

Your right Kaner. These articles basically are to start a flame war. By the way, Lexus started out as a luxury brand, but Hyundai has $8,000 cars in their showroom along with their flagship $33,000 Genesis.


IVANURI97IVANURI97 - 4/15/2009 3:32:39 PM
-1 Boost
But David, Lexus is just a fancy Camry, so pretty much the same thing!


dlindlin - 4/15/2009 9:58:30 PM
-1 Boost
I hope you are not referring to AUDI at the same time, because at least LEXUS bother to switch to RWD platform.


abcdabcd - 4/15/2009 2:53:24 PM
+6 Boost
Hyundai hasn't worked out yet reputation in any area(e.g. reliability, performance, styling...), at least in cars, in shipbuilding maybe they have reputation, but I'm not interested in ships.


Type707Type707 - 4/15/2009 3:21:50 PM
-4 Boost
I wouldnt be suprised if Hyundai replaces Lexus. Hyundai has been stepping up their game when they came out with the Genesis already competing with Infinitis G37.


Agent009Agent009 - 4/15/2009 4:04:28 PM
+1 Boost
Hyundai has the resources to do whatever they want. Lexus built a brand on reliability. Hyundai can build a brand on quality for the price.


jeeka715jeeka715 - 4/15/2009 3:25:26 PM
+9 Boost
"Encouraged Discussion" aka, "My deadline is tight, so I'll just write up the same exact article with a new flame friendly title, thus trying to tie Lexus to a lower brand so as to not give them credibility when it comes to BMW/Audi/Merc"...


JUGNUJUGNU - 4/15/2009 4:02:22 PM
-1 Boost
The difference between Lexus and Hyundai is that Lexus like Europeans, develop many new technologies and set standards.
Hyundai just collect all these technologies from these top level brands, put it in a car and charge less.

There you have it, Hyundai VS460(Equus) vs Lexus LS460. Not to mention they copy the designs and now names as well.

JUGNU


r_driver04r_driver04 - 4/16/2009 12:13:35 PM
+1 Boost
What a novel idea. C.A.S.E = Copy and Steal Everything. Consumers don't care what you name it as long as they get a quality product that has the bells and whistles that they want.....right?


222max222max - 4/15/2009 4:08:29 PM
+3 Boost
Whatever happens I think we must all realize that the Genesis seems to be accomplishing exactly what Hyundai set out to do; bring a new type of customer into the showroom, elevate the brand and demonstrate the company's ability to build a credible upscale car. It's only icing on the cake that it's actually selling well. If the reliability and satisfaction reports are favorable then I would call this gamble an unqualified success for Hyundai.


vaithavaitha - 4/15/2009 5:58:38 PM
-1 Boost
Bravo! Appropriately crafted statement- Nothing could be more accurate.

But no matter what, Things like Lexus will succeed in this world.


r_driver04r_driver04 - 4/16/2009 12:16:52 PM
+1 Boost
Saturn L Series....Saab 9-3. VW Jetta....Audi A4??? Chrysler 300....Benz E Class(old body). Heck a Caddy is just a gussied up Chevy...right? Get a clue!


Agent63Agent63 - 4/15/2009 4:18:11 PM
-1 Boost
I think the Genesis is a very understated luxury sedan. It's very comfortable from what I gathered at the car show and is probably very quiet on the inside.

I think in order for Hyundai to be recognized as an understated brand would depend on the new Equus and how high the bar is set. VERY HIGH POTENTIAL


1dott81dott8 - 4/15/2009 4:30:23 PM
+7 Boost
the question should be, is hyundai (trying)to replace Lexus As The Understated Luxury Brand? i don't like lexus' but hyundai has a long way to go before that happens.



PerformanceGuyPerformanceGuy - 4/15/2009 5:00:01 PM
+3 Boost
Hyundai is doing a good job with their cars, but somehow they keep getting placed against cars in the wrong category. There cars will do well against, Honda, Toyota, Nissan, and cars like that. They can't compete and really doesn't make since to try and place them with Audi, Infiniti, BMW, Mercedes, Lexus, etc, but I guess it does make a good flame war I guess.


monkeyrunmonkeyrun - 4/15/2009 5:02:45 PM
+9 Boost
So Accent is a luxury car now?


PerformanceGuyPerformanceGuy - 4/15/2009 5:04:19 PM
+6 Boost
Apparently so. Logic has no place here!


theoptimisticpessimisttheoptimisticpessimist - 4/15/2009 5:02:55 PM
+7 Boost
When was Lexus ever understated?


thetruth01thetruth01 - 4/15/2009 5:08:13 PM
+8 Boost
Good Lord.


1uberaudi1uberaudi - 4/15/2009 5:20:16 PM
-2 Boost
Yes.


AnthonyAnthony - 4/15/2009 5:29:16 PM
+4 Boost
This is only happening as wishful-thinking in the delusional minds of Lexus-haters. These articles involving Hyundai are laughable at best. The Genesis is not the only sub-$50,000 near-luxury car that offers great value. A Toyota Avalon has just as much room, and even more value than the Genesis, but you wont see too much attention on a comparison between those two, because that is not what this Lexus-hating website wants to show.


hyundaifansdotcomhyundaifansdotcom - 4/15/2009 5:30:49 PM
+2 Boost
Hyundai at this stage cannot be compared to Lexus. They are not there yet and will never get there by selling the Genesis along side the Accent and Elantra in the same showroom. What Hyundai is trying to do is elevate the image of Hyundai over where it was a decade ago. i.e. crap vehicle builder. To that extent, they have succeeded. The Genesis sold 1600 units last month and it has got people who are used to Lexus, BMW and Benz vehicles interested. To be really considered a luxury brand, Hyundai would have to separate the Genesis and the upcoming Equus into a different brand under the same corporate umbrella. So far, they have shown no interest in doing that.


hyundaifansdotcomhyundaifansdotcom - 4/15/2009 5:52:08 PM
+6 Boost
Lexus competes with Rolls Royce and Bentley?? Are you on crack??


MrBratwurstMrBratwurst - 4/15/2009 6:04:58 PM
-6 Boost
— hyundaifansdotcom:

| Lexus competes with Rolls Royce and Bentley??

In some aspects...

Noise level in decibels
-> at 70 mph (~112,5 km/h)
-> at full throttle
-> when idling

1. Lexus LS 600h L
-> 58,9
-> 66,6
-> 38,3

2. Rolls Royce Phantom
-> 59,0
-> 67,0
-> 40,0

30. Bentley Continental Flying Spur
-> 65,0
-> 73,0
-> 46,0

68. 2003 Bentley Arnage R
-> 73,0
-> 75,0
-> 51,0

Sources:
http://www.edmunds.com/insideline/do/Drives/FullTests/articleId=120486/pageId=122610
http://www.edmunds.com/insideline/do/Drives/FullTests/articleId=108933/pageId=68143
http://www.edmunds.com/insideline/do/Drives/FullTests/articleId=109001/pageId=68259
http://www.edmunds.com/insideline/do/Drives/FullTests/articleId=89619/pageId=46013


theoptimisticpessimisttheoptimisticpessimist - 4/15/2009 6:30:05 PM
+9 Boost

"Lexus competes with Rolls Royce and Bentley??

In some aspects..."

Just not sales or clientele.



MrBratwurstMrBratwurst - 4/15/2009 6:39:32 PM
-1 Boost
||| "Lexus competes with Rolls Royce and Bentley??

|| In some aspects..."

| Just not sales or clientele.

Absolutely right. But I bet some would like to have a car which is even a tiny bit quieter than Rolls Royce Phantom but you don't have to be a multimillinaire to buy and maintain one.

Notice also that this is an aspect in which Rolls Royce excells. There's nothing impressive in making a car faster than Phantom cause Flying Ladies are not about speed. Making one with better soundproofing, now that's something.


JMB1013JMB1013 - 4/16/2009 9:56:20 AM
+3 Boost
So Hyundai can't compete with Lexus because they sell $20,000 cars and the "$33,000 Genesis;" however, a $50,000 Lexus competes with $250,000+ Rolls Royce and Bentleys? And this makes sense to you?


theoptimisticpessimisttheoptimisticpessimist - 4/15/2009 7:33:32 PM
+4 Boost
— MrBratwurst

I concur with your comments - the noise thing is BMW, they like people to here the exhaust note while accelerating. Having driven a new RR Phantom is pretty damn quiet.

david969 I don't think you're on crack, I just think your a boring troll.


david999david999 - 4/15/2009 9:46:30 PM
0 Boost

I agree totally with your observations.


lexworldlexworld - 4/15/2009 8:39:57 PM
-1 Boost
PerformanceGuy is right. It's only obvious that Agent009 has some real-time envy of the Lexus brand and can't seem to get over the fact that no matter what Lexus is the worlds best made luxury car......Period. Over all Hyundai does not compare to Toyota in quality,refinement,workmanship,appeal,durability,reliability,brand image,gotta have it factor,status,prestige,wealth,resources,influence,resale value,customer loyalty,value you name it any fool can see and know that comparing Hyundai to Lexus is not smart buisness. Agent009 this is a reflection of your weakness not your strength. Stay focus and think big..........


onetimeonetime - 4/15/2009 10:20:22 PM
0 Boost
The current Hyundai Sonata seems to have a more luxurious interior than the Lexus ES. And the Hyundai Veracruz looks nicer than the Lexus RX.


91z4me91z4me - 4/15/2009 10:32:56 PM
+1 Boost
Lexus started out with the LS400 and the ES250 (a rebadged Camry). How is this a full lineup?


david999david999 - 4/15/2009 10:35:37 PM
-3 Boost

For the record, in the U.S. there were a total of 3,900 Genesis vehicles sold in Jan, Feb, March. Hyundai was hoping for 25,000 per year, so in their eyes it is not as successful as the article trys to portray it.


1evlaudi1evlaudi - 4/15/2009 10:59:56 PM
+7 Boost
This is just too funny, I saw the title on the home page and I knew it was one of those Agent000 posting. This is fake news, irrelevant, absurd, stupid, you name it. But I had a lot of fun reading some of the comments. LOL


EL34EL34 - 4/16/2009 2:43:48 AM
-1 Boost
All this talk about how quiet a Lexus is - is a joke.

If you have a 50 watt Marshall tube amp which is very lud and your neighbors will call the cops if you turn it up and you have a 100 watt Marshall tube amps the 100 watt amp is only 3db's louder than the 50 watt amp and it's twice as much power.

When you're talking about 3 or 4db differences in cars I don't think any of you could hear the difference in noise level.


klossfamklossfam - 4/16/2009 10:02:33 AM
-2 Boost
Yes, Agent 009 does bring up stupid opinion surveys but if all the knuckleheads on this site are going to bother to respond (assuming you aren't a 14 year old boy without a license) at least answer the question. I say, YES, Hyundai is the "new" understated luxury. I've driven both Genny sedans (and a 3.8 Coupe). The sedan is impressive and is certainly a way to say "I enjoy my luxury without having to be a seen in a BMW or MB". Forget Lexus - they are nothing more than Japanese Buicks - save for the IS. I would definitely put a Genesis Sedan at the top of my list for next vehicles (and my current ride is a 2008 Infiniti G35xS which replaced a Audi A4 3.2 Quattro)...This is exactly what Hyundai was trying to achieve: Real consideration from people that have owned other luxury brands.


LexSucksLexSucks - 4/16/2009 10:36:45 AM
+1 Boost
"I would definitely put a Genesis Sedan at the top of my list for next vehicles "

- I wouldn't. The Genesis wouldn't even make my list.


LarsDFWLarsDFW - 4/16/2009 11:01:11 AM
+1 Boost
All of these posts simply support the reason we have a number of (mostly) viable brands to choose from. My Infiniti M35Sport lease just ended. With lessors seeming less willing to support residual values, I decided to buy my next car. My auto schizophrenia (intensified by blogs such as this one) and a down financial market prompted me to consider a the following new cars: Hyundai Genesis, Cadillac CTS, Acura TL, BMW 3 convertible, BMW Z-4, Infiniti G37 convertible and the following used cars: a Lexus SC 430, Lexus LS 430 and a remarkably priced used Audi A8. I really wanted the Audi - but when I researched cost of ownership (which includes not only maintenance costs, insurance costs and depreciation schedules) I had to go back to Lexus.

I am in my mid-late 50's, make a reasonable amount of money, like very nice cars - but temper that with practical business sense. I have enjoyed owning Mercedes, BMW, Infiniti, Acura, Cadillac and Lexus products. I purchased an 05 LS430 with 30k miles for $30k. It will not depreciate as much as the other cars I considered and will cost me considerably less than the others over the 2-3 years I plan to keep it.

I strongly considered the Hyundai - but am not convinced it will hold its value. That said, I concur with all of the comments harkening back to Lexus' earliest days when they produced a remarkable product at a significantly lower cost.


r_driver04r_driver04 - 4/16/2009 12:09:42 PM
+3 Boost
If Hyundai can study the book of Lexus, they'll be able to compete with the luxury car market easily in the next 5 to 10 years. All Lexus,Infiniti and Acura did was study the European cars and then build them better. Plain and simple folks. Hyundai has a cheat sheet to become a superior brand.

You can thank the Europeans for over pricing their unreliable cars despite how well they perform. Because unfortunately, 90% of the posers/posters here won't even come close to driving their AMG or M like it's meant to be driven, what a waste. 90% of us use our cars to go to work not rack up track time. That's how the Japanese have managed to run rough shot over other makes.


ToneeTonee - 4/17/2009 10:39:57 AM
+1 Boost
"Starting at $32,250, it has drawn buyers who until recently might have opted for more costly prestige cars, such as the Mercedes-Benz S-Class (stickered at $89,350 and up), says John Krafcik, president and CEO of Hyundai Motor America."

First of all I really want the people at Hyundai to get it throught their thick skulls that people who are in the market for a Mercedes S-Class DO NOT think about Hyundai. Buyers in that market don't really care about money, I mean come on if the S550 stickers for $89k plus, that buyer isn't thinking "Oh man, I should get that new Genesis b/c I'll save $50k." People who look at Mercedes-Benz will probably gop to other real luxury counterparts like BMW or Audi and not even consider Hyundai. However, I think they might have an argument if they compare it to Lexus buyers instead of Mercedes buyers.


DRC4DRC4 - 4/17/2009 3:59:52 PM
0 Boost
Hyundai make some very nice and now well and solid built car's. However they are years behind the technology put behind the lexus models and lights years aways from the Hybrid tech that Lexus has. I mean I hope people are serious about the BULL/$%?.


charlie3charlie3 - 4/18/2009 12:51:49 PM
+1 Boost
To (76 are what ever you call your self)'Hyundai Has Been Here Half The Time As The Others.'Give Them Fifty Years Here Like Toyata 'And Look Out"They Maybe Number One Like Toyata Is Now."OK 'Charlie6


zorovaczorovac - 4/18/2009 7:54:24 AM
+1 Boost
Dear huu76, your comments show a lot of hatred you have against Hyundai cars. Has hyundai done something personal to you to have such a hatred built in you? Hyundai Genesis is a great car by its own merit and has been given a lot of respects by both the cadanian and north america journalist associations. North America Car of the Year is an example. Please try not to convince readers here with your hatred against Hyundai. Please keep your hatred to yourself and learn to show some respects where they are due.


kopeekopee - 4/18/2009 9:03:10 AM
+1 Boost
well,leavin hyundai alone is one of the best advise i can give to hyundai haters.of course hyundai is on the road to replacing lexus as a luxury brand.all the excuses given by hyundai haters including the one that says hyundai copies to that of hyundai ripping bmws interior,is just silly.well if people really hate hyundai this this much why do they stumble across these articles?hyundai can take it self to any level it wishes to,because it has what it takes to do so.


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