Hyundai Places Industry On Notice - Moves To Make Genesis A Stand Alone Global Brand

Hyundai Places Industry On Notice - Moves To Make Genesis A Stand Alone Global Brand

South Korean automaker Hyundai Motor Co appears set to launch a standalone global premium product line-up, to be called Genesis, as it seeks to boost profitability which is being squeezed by a strong won currency.

Hyundai is expected to announce the move as early as Wednesday, three people close to the company said.

The maker of the Sonata midsize sedan and Santa Fe crossover sport utility vehicle (SUV) plans to launch Genesis as a separate global brand, though the line-up is likely to be sold through the existing Hyundai-brand distribution channel – at least for now, said one of the knowledgeable individuals.


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monopoly1monopoly1 - 11/3/2015 4:48:34 PM
+2 Boost
About damn time! Kudos to Hyundai.


GMCadillacGMCadillac - 11/3/2015 4:55:51 PM
-6 Boost
Looks like this is the end of Lexus, Infiniti and Acura. Because honestly, no Japanese "luxury" brands can compete with the price of Korean "luxury" brands.


TomMTomM - 11/3/2015 5:21:23 PM
+3 Boost
That will depend on how the market perceives Genesis. It will also depend on how they price the cars too. But at least Johan DeNysschen will have another "brand" to screw up available to him after Mary Bara fires him!

Since many people already associate it with Hyundai - that will be a negative for those looking to move upscale. People do not associate "Korea" with reliability and quality. At least Toyota already had a great reputation for making boring but quality and reliable cars. And add to that - that they will have to produce a line of cars - and SUVs - and how they differentiate them from the Hyundai models will make a difference. Remember - KIA is supposed to be upmarket to Hyundai - I doubt you will find many consumers who consider that to be true!


MDarringerMDarringer - 11/3/2015 7:43:09 PM
-3 Boost
With Acura having crapped on itself, Lexus trying to regain its mojo, and Audi harpooned by dieselgate, this is an ace-of-spades move by Hyundai.

The Genesis is a good reason not to buy a 5 Series or a (current) E Class. The new E Class looks to be a bombshell, but the very forgettable 5 Series is in deep caca and the A6 is a poor seller.


TheSteveTheSteve - 11/3/2015 5:23:34 PM
+1 Boost
This might be a move that allows the Genesis brand to go off in its own direction, without regard for Hyundai's styling. Also, buyers will be more likely to see Genesis vehicles as a luxury brand without economical Hyundai's sharing the showroom.

On the down-side, this might equate with higher service bills without adding value, just because people are used to paying more to get their luxury or premium car serviced, but they expect "reasonable" service costs from Hyundai.

Good luck to Hyundai. I believe they'll be successful, regardless if they sit at the same table as Lexus, or not.


cidflekkencidflekken - 11/3/2015 6:42:55 PM
+3 Boost
I just don't know how effective this will be. The Genesis sedan has an identity crisis with buyers - half see it as a "premium" model and half see it as a non-premium full-size car, ala Impala, Avalon, et al.

If this strategy is going to be truly effective and profitable, Hyundai needs to make a much better name for itself as a brand. They have yet to establish themselves as an engineering, design, or performance leader and are perceived by many as followers. They are known for building nice, solid cars, but nothing really beyond that.


MDarringerMDarringer - 11/3/2015 7:37:37 PM
-6 Boost
You're clearly out of touch. I chalk it up to your rabid Eurocentrism. But I still love you. LOL


MDarringerMDarringer - 11/3/2015 7:36:26 PM
-4 Boost
I plan to laugh all the way to the bank!


Dr550Dr550 - 11/3/2015 8:08:07 PM
-2 Boost
Steal a page from Lexus' playbook. Start with a midsize SUV (RX) and sedan (ES). Do not chase a horsepower war. Use a tried and true 3.5 V6 and use plenty of sound reducing materials. Smooth, basic six speed transmission. This should be the launch pad to ensure new dealerships keep busy. Next a small SUV and a coupe based on the Genesis sedan.


cidflekkencidflekken - 11/4/2015 12:49:29 AM
+3 Boost
Here's where we know that "Genesis" is a bit off the mark. From the press release making it official, http://jalopnik.com/hyundai-makes-the-genesis-brand-official-cars-will-get-1740446762:

"The Genesis brand seeks to create a new definition of luxury, one that will provide a new platform for future mobility centered on people. By anticipating human needs at every touch point, Genesis models will embody four key aspects: Human-focused innovation, refined and balanced performance, athletic elegance in design and hassle-free customer experience."

At what point has Hyundai ever been original at anything? In not one single criteria have they been ahead of anyone else. They are clearly followers with little engineering prowess to create technology on the same level as Audi, Mercedes or BMW. They are clearly followers with zero proof of their ability to build strong-performing engines or chassis. They lied about their mpg and can't build any cars that can best any other brand in fuel economy. The reality is, they are 10 years behind the competition and making little ground to close that gap. Look at where Mercedes took the S-Class, where BMW has taken the 7 Series, where Audi is taking overall technology, not to mention where those three are taking performance, and anything "Genesis" does from here is going to be seen as "been there, done that...next". And don't even get me started on their naming strategy, something Infiniti will be blushing about in flattery.


jameswisrikjameswisrik - 11/4/2015 7:54:10 AM
0 Boost
no end to Lexus....

hey if BMW/Audi/Infiniti still can sell POS.... do to idiot consumers... i'm sure the more wise ones will keep buying Benz,Lexus, and Gens!


Dr550Dr550 - 11/4/2015 4:32:11 PM
+2 Boost
"No end to Lexus" because they use Toyota's part bin. Besides some body panels, seats, and interior/dash I would guess a Lexus is about 80% a Toyota. But probably 80% of their customers are oblivious to this.



HughJassHughJass - 11/4/2015 8:47:47 AM
+7 Boost
lol, how much does this website make from the Koreans? Hyundai came out with new colour, puts everyone on notice.

Genesis is a stupid brand name, they should come up with a better name and leave Genesis as a discount car name instead of making it a brand. Makes they think they're selling video game consoles from the 90s.

A better name would be KiAudi or KMW (Kimchi Motorwerks), they can even recycle the German emblems too to go along with their recycled car designs.


222max222max - 11/4/2015 10:19:00 AM
+1 Boost
I think this is a good move. Right now they are selling their most premium products out of their mainstream dealer channels. They need an upmarket dealership with premium showrooms and service centers. The products are solid enough but the dealer experience needs to be competitive with other premium dealerships. That's the part Hyundai needs to get absolutely right if they want to succeed with a Genesis brand.


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