Hyundai "Testing" In Europe, Can It Penetrate The Market?

Hyundai
I think after Volkswagen saw disappointing sales with the uber-luxo Phaeton, no one expected the Hyundai Genesis sedan to take flight like it did in the US. I mean, it's a Hyundai. The Germans are probably in a boardroom right now saying "How?!"

After experiencing success in the US market, now Hyundai is "testing" in Europe to see if it can continue moving its brand forward and across a new market. After seeing what happened in the US, the Germans must be sweating.

Although there will always be naysayers, there is one thing about Europe that would make the Hyundai highly desirable and it is in this little nugget from The Truth About Cars...

The key is here:

There is a lot of reverse snobbery in Europe. Ostentatious consumption (Maybach comes to mind) is out, smart shopping is in. Women proudly pronounce at parties that they bought the outfit at H&M...

**Can Hyundai maintain the success it has seen in the US in Europe? What say you, Spies?


Launching a new car division is tough. A monumental task, you might say. And it has to be executed just right. I’ll give you an example, look at Lexus. When Lexus was launched in the United States, it was a hit. It didn’t take much to separate American drivers from their Cadillacs, Lincolns and Buicks. Now compare this to the European launch. Lexus never really took off. Why? Well, a good reason would be that when Lexus starting exporting to Europe, Germany was making luxury cars to a high standard already, so Lexus was nothing special. Hyundai knows this.

Car and Dealer reports that Hyundai wants to bring the Genesis to the UK. Not a problem, you might say, just get it to European standards and off you go. Not so fast. It’s not as simple as that...


[Source: The Truth About Cars]








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WorldofLuxuryWorldofLuxury - 10/17/2010 8:41:51 PM
-2 Boost
In today's market, I can't say for sure. One thing is for sure: Lexus isn't suffering too much. Hyundai MIGHT have a chance...


tangotango - 10/18/2010 12:56:09 AM
+4 Boost
That article is misguiding. Lexus did not fail in Europe because it was any less of a vehicle than any European car. It failed because Europeans are nationalistic. If a car doesn't come from Europe they don't want it no mater how well it's built. To top off the prejudice, European countries have quotas on the amount of Japanese cars that can be imported. The fact is the Lexus is and always has been better built than any European car. PERIOD. They use minute details like "not sporty enough for our tastes", "no diesel option", "no manual option", "too boring to look at". And my personal favourite "doesn't have the pedigree". "Pedigree" is the European equivalent of inbreeding, as far as I am concerned. I will pass on that, thank you. Hyundai will also fail at this push, but it will have nothing to do with their lack of trying or the level of quality in their product.


WimmerWimmer - 10/18/2010 6:22:25 AM
-2 Boost
Tango you're full of crap.

Lexus is doing poorly in Europe because they have not adapted to the European market. Period. Selling American-style luxury in Europe doesn't work. In order to function here as a luxury brand you need a variety of engines choices, small and big, diesels, different trims etc. and Lexus doesn't have any of this. Their dealer networks are only available in major cities (a BMW/Benz dealership can be found in the most backwater town, literally). Oh, and yes, Lexus cars aren't very sporty. Most people here don't care about sport, but a certain steering feedback / road composure is useful here because our roads are narrower and twistier. Driving a Lexus on these roads isn't very comfortable when you're sweating all the time trying to concentrate on holding it in its lane - literally.

Furthermore, you claim that a Lexus has always "been better built" than any European car. What the hell does that mean? On what basis do you base this silly argument? I'm European, I live in Europe and there are tons of older European luxury cars still driving around here in perfect shape. Based on this, I assume I can claim that European luxury cars are well-built, because I am guessing you're basing your claim on the fact that you see more older Lexus in the US than European luxury cars. Well guess what? Seeing x-number of cars on the road from a certain brand means nothing in the big picture. It means that in this region more people drive cars from a particular brand. That's all.

Lexus is overrated to me. Their rivals are just as good if not better in many key areas. Where Lexus shines is reliability and value. Oh, and another reason why Lexus is doing piss poor here is because they don't have estates, coupes etc. and their cars, except their SUVs (of which only the crossover RX is sold here), have an embarrassingly small payload capacity and interior space. Europeans love to take their luxury car on vacations with them and that means they want interior/trunk space and need a useful payload capacity. You can't really do that with a Lexus (and the fact that they only offer gas-guzzling engines here).

Yes, Europeans are nationalistic, but we're not blind. We want a good deal and a good car just like anyone else, but a Lexus? A Lexus in Europe stands for "overpriced Toyota" - literally. Why? Because it has no PEDIGREE. I'm going to throw this in your face now because in the luxury market in Europe, PEDIGREE IS IMPORTANT. When I buy a luxury car here I want it to stand for something. What does Lexus stand for? Ask this question to the average European and they won't even know what or who Lexus is (or they'll you that is an overpriced Toyota). Luxury brands in Europe evolved through motorsports, tradition, heritage, innovation etc. to get where they are today. How did Lexus evolve? That's right: rebadged Toyota from day one. Sorry, NOT APPEALING. When people discuss BMW, Mercedes, Jaguar, Aston Martin etc. you talk about their history a


BillBill - 10/18/2010 3:17:34 PM
-1 Boost
I agree with you completely, Wimmer.


CaraficionadoCaraficionado - 10/18/2010 9:41:33 AM
-4 Boost
OMG Wimmer, you hit the nail right on the head. Thank you for putting it out there so well and clear.


1BadMan1BadMan - 10/18/2010 7:58:45 PM
-2 Boost
Wimmer: You statements are spot for the European market. Very well said. The Genesis is a very nice car but is not a luxury car as it is intended. But Hyundai is honest about the car. Toyota's "Lexus" is what is know in the retail world as Commodity Luxury. Americans were and have been all over it since day one.


nguyenvuminhnguyenvuminh - 10/19/2010 2:07:19 AM
+1 Boost
I agree with Wimmer. Europe places certain priority on pedigree when it comes to high price products and this not only for auto. YOu can see it in watches, clothes, etc. There are fresh new European brands that are sucessful commercially but the historical name like Patek Philippe, IWC, etc. for watches still stand above the rest. Europeans saw right through the Lexus/Toyota connection and felt slighted by that move much more so than Americans (who tends to be a bit more practical about that). I think Hyundai will run into more difficulty in Europe than they did in N America.


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