US Chief Says Genesis Luxury Brand Will Steal Sales From The Japanese Before Tackling The Germans

US Chief Says Genesis Luxury Brand Will Steal Sales From The Japanese Before Tackling The Germans
Hyundai’s new Genesis luxury brand can make money with lower volumes.

And that’s a good thing, because it isn’t looking to compete with the big boys of luxury just yet, says Hyundai’s U.S. chief.

“If we’re extremely successful in the next 5-year period of time, we’ll go from selling 30,000 Genesis (vehicles) to maybe 90,000. We’re structured to make money and generate growth at sub-100,000 (annual volume),” Dave Zuchowski, CEO-Hyundai Motor America, tells media here at a ’17 Genesis G90 preview.


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MDarringerMDarringer - 8/12/2016 3:51:39 PM
-7 Boost
Uh oh! Hyundai called Audi a Tier II brand. GermanNut will lose his mind.

Genesis can meet its sales goals but it has to play the game well. The faster they can get crossovers into the mix the better.

Infiniti should be easy to displace. Their products are woeful and pointless.

Acura is vulnerable because aside from the NSX, all of its products have a corresponding Honda donor car. Once people catch on that the Genesis sedans are not Mercury-ized Hyundais like the Acuras are Mercury-ized Hondas, Genesis should get some conquest sales there.

Lexus will be harder simply because they've been using the formula longer that Genesis is borrowing, but if Genesis is an A+ student, Lexus could have a challenge. For now Lexus is safe.

I think Genesis has a fight on its hands with the Continental, but not with Lincoln as a brand.

Cadillac should be worried sedan-wise.


MDarringerMDarringer - 8/12/2016 4:43:26 PM
-2 Boost
Even if that is true--and it's not--people who would not have normally seen will have done so.


countguycountguy - 8/12/2016 4:55:45 PM
+1 Boost
They will get most of their sales from Buick, Lincoln and Acura.


mplsmpls - 8/12/2016 7:14:08 PM
+4 Boost
Mdarringer..
The guy only talks tiers based on US sales, i.e. more than 300K saes is tier 1, more than 100K is tier 2.

Then again i would place Audi in tier 2 in terms of image, here in UK, Audi drivers have a bad reputation for driving like d icks...


Dexter1Dexter1 - 8/12/2016 7:45:56 PM
+4 Boost
Audi drivers are dicks in the US, too. I've leased 8 of them, so I know first hand. LOL.


HughJassHughJass - 8/12/2016 8:10:26 PM
+1 Boost
Its easy to make money when your home gov't covers all the losses as long as you carry out official gov't policy. Japan does it, China does it, Koreans do it.

90k cars in the US (basically means 90K world wide), what a joke.


HughJassHughJass - 8/12/2016 8:12:20 PM
+5 Boost
Nice Ford Mustang headlights, doesn't really fit with the copy+paste Audi body though.


HughJassHughJass - 8/12/2016 8:14:01 PM
+4 Boost
My error, it looks more like they copied the LS and taped on some Maybach taillights.


CANADIANCOMMENTSCANADIANCOMMENTS - 8/12/2016 8:20:35 PM
+5 Boost
Resale value. One decade? Two decades? How long will it take before it is decent and on a par with it's competition?



MDarringerMDarringer - 8/14/2016 7:25:29 PM
-3 Boost
Largely irrelevant given that most of the cars in this segment are sold via subsidized leases.


skytopskytop - 8/14/2016 11:06:30 AM
+6 Boost
I am sure Genesis owners will enjoy the Hyundai service area that served warm coffee and a candy machine.


MDarringerMDarringer - 8/14/2016 3:45:07 PM
-3 Boost
Dealers selected to retail the Genesis brand must overhaul their service area with Genesis-specific requirements.


cidflekkencidflekken - 8/14/2016 3:26:14 PM
+3 Boost
Just not sure how much Genesis will resonate with buyers. The current Hyundai Genesis sedan is doing well (though its sales totals also includes the coupe). But at its price point, it really should be doing better. It really should have sales numbers closer to the 3 and C than to the 5 and E (yet still trails them all).

The G90's styling has a certain "grandiose-ness" (albeit derivative and fairly bland) about it so it may appeal to those looking for more traditional American luxury. At the same time, it doesn't really say "Tier-1 luxury", either. And this may be fine as long as Genesis markets it correctly. Don't market it as an alternative to the S/7/A8 - as VW, Kia, and Cadillac have found, that approach isn't effective until you've built up a certain reputation, prestige, and history. Lexus found success with the strategy of an alternative Benz/BMW product approach, but as Mercedes and BMW improved their reliability and/or their maintenance programs, without the luxury Camry (ES), sales wouldn't be close. Even now, Lexus is trying to position themselves as the "anti-Germans" and it's not effective. I'm sure their conquest sales are not strong (though I have no idea) and I would suspect that most of their buyers may be stepping up out of Toyota products, as evidenced by the strong(er) sales of thier lower-end models such as the ES, NX, and RX.

Genesis needs to market it as a better Continental and CT6. Don't even put the Germans into the equation. There are plenty of other buyers out there to target and plenty of sales to steal.


MDarringerMDarringer - 8/14/2016 3:42:14 PM
-3 Boost
Hyundai dealers RARELY stock the Genesis Coupe because it languishes on the lot.


MDarringerMDarringer - 8/15/2016 8:47:59 AM
-1 Boost
It was actually rare to find the Hyundai emblem on the Genesis anyway. Most carried Genesis emblems anyway.

It would be an absolutely foolish constraint to force stand-alone dealerships when launching the brand. Hyundai has rather specific remodeling guidelines for the Genesis space, but you will not have a G90 parked next to an accent on the showroom floor.


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