Genesis Strategy Is To Pillage The Lexus Customer Base First, Then Move On To The Germans

Lexus succeeded on making a better in some ways and reliable car that so happened to be 60% of the price of their competition. Lexus also had the RX330 to thank for it's continued lifeblood. That single car/truck is the financial backbone of the company, followed closely by the ES330.

The financial backbone of Lexus, Infiniti, Audi, etc. is to pull parts(engines, platforms, struts) from the mother company. Economy of scale. Lexus succeeded in capturing Toyota customers looking for their definition of luxury. Quiet engine, smooth ride, low wind noise. Hyundai customer base differs from Toyota, but I think they are on the right path.

Lexus has a lengthy history of providing a high level of fit and finish, apparent luxury, and noteworthy reliability (few defects), as well as "reasonable" repair costs. It's legendary. That's who Genesis is up against, for starters.

As the saying goes: you can offer me better for the same money, or the same for less money, otherwise, I'm not interested. (i.e., not interested in a lesser car for less money).

The baby boomers accepted Lexus as an alternative to the Germans, millennials have not, and most likely will not accept Genesis as an alternative to anything, maybe except a better value than Infiniti and Acura, and better image than Lincoln.

Agreed with murk, why go half way? They need to go all out or do nothing. Saving money by not having Genesis dealership will kill the brand image.

Genesis will likely pillage a bit from Hyundai initially, getting those car buyers who want to upgrade to a more premium car. As for taking on Lexus, the best thing Genesis has going for it is that Lexus has taken a downward turn from a styling perspective, with the new RX design being completely hideous. This alone may result in some Lexus buyers starting to shop elsewhere, but it will take time before those buyers put Genesis at the top of their list.

Good luck with that.
As much as I like competition and as much as I want to see the South Koreans do well, Lexus has matured tremendously with cars that continue to be reliable and that are unique however polarizing design-wise -no copycats here.

Most genesis buyers will be Hyundia/Kia buyers looking to move up in the same brands, then they may get some sales from Acura, Lincoln and Buick, maybe Cadi. Don't see many Lexus, BMW, Merc, Infiniti, Audi drivers downgrading to this.

First of all Genesis isn't a "downgrade".

Secondly, Lexus relied heavily on Toyota buyers moving up.

The real eye opener is a comparison between the G80 and the Jaguar XF. The G80 wins on style, build quality, and reliability. If you switched the badges on them, the car bigots here would hail the new Jaguar nee G80 and laugh at the Genesis nee XF for its abysmal quality.

Sorry MDarringer, as you see no one on this board is drinking the kool aid. You are just pushing your product but its not working.
This is a great Tier 2 luxury car.
Lexus has been doing this for years and still have issues convincing some buyers that they are at the same level as MB or BMW. Countguy is absolutely correct with his statement.

@USNA1999 no one cares about the masturbatory revelations of a 16 year old jerking to an Elon Musk speedo poster and wanting butt time.

The fit and finish of the Genesis/Genesis G80 is excellent as is reliability. The Genesis strategy of hitting Lexus hard makes sense and I'd rather have the G80 over the Lexus GS. Genesis will also battle against Buick and Lincoln and I think will be a force to be reckoned with.

The naysayers here are missing the point.

Do you think they need a separate dealership for the Genesis brand? If I remember correctly that dealer experience was a big part of the Lexus appeal when they first came out. Shopping for a premium car which some kid coming out of high school may not appeal to premium car buyers. In addition how will they train people to provide a premium service experience for one customer and the standard experience for the other? My opinion - Genesis needs a separate dealership.

I know one thing the richest car company is not going to sit around and let hun-day pillage anything.

And that would be?

If you don't who is the richest car company on the planet you shouldn't be on this site.....

there is something special about going into an exclusive brand dealership. its not about being a badge whore as you call it, its the psychological feeling you get walking into an Audi, BMW, Benz, Jaguar.
Perfect example , when i walked into Ferrari Maserati of Long Island, even though it was for a Ghibli, it just gives you this sense of " wow, i cant believe im here "
theres no way in hell you can walk into a Huyundai dealership and feel important. YOU JUST CANT !!!

MDarringer - why is it when someone defend their preference for German car or Lexus or Tesla, or whatever that is not Lincoln or Hyundai, you slam them for being ass kisser or jerk off? Is it something you have intimate experience with? Maybe living vicariously through them? Or maybe because you're so good at it? Seems like you're blowing Hyundai pretty good too.

And while you're jerking off while sucking off Hyundai, why don't you suck the tail pipe of those Hyundais and do us all, including your wife and children, a favor and go into a deep sleep.

Psychotic Mattie is already estranged from his wife and kicked out of the family Hun-day business by his father in law. Who in their right mind would buy an unreliable Hyundai piece of shit when their are so many great German cars to choose from. I kept for first Boxster for 12 years and lost less in resale then you do with a Genesis after the first 3 to 4 years. Only an socially inept unemployable moron would be selling this stuff - - - we all find our stations in life and it looks like Psycho Mattie is the perfect tool for the job.

There are few big problems I see with Hyundai's plans.

1. Dealer Network - you absolutely can not sell cars at these prices (and reach lexus levels) at Hyundai dealers. Lexus caters to customers who want a nice comfortable, reliable ride and great customer service. The customer service at Lexus dealers blows away everyone else in the market and is a great selling point for their brand amongst non car enthusiasts (who are less willing to put up with poor service than enthusiasts).

2. Lexus sales have been stagnating and they are moving their vehicles in a more "exciting" direction in terms of styling and dynamics to compete with the MB/Audis who are eating into audi sales. Younger customers want more dynamic and better styled vehicles. If the 1980's lexus playbook was still working, why would Lexus be changing directions?

3. The current core Lexus customer, who wants reliable, comfortable transportation and good customer service will not migrate to Hyundai products. No one can match Lexus in build quality and reliability especially at the higher end (LS/LX. Many companies have tried to copy the culture of quality and continuous improvement at Toyota but none have succeeded. If lexus can walk the balancing act of keeping the ES/RX/LS for their core customers, and make dynamic exciting cars out of the IS/FC/LC/GS/NX they will have a lineup that is unstoppable...they will dominate all segments of the market.

You know nothing about the industry and it shows.

Mattie knows nothing about the car industry either just too much internet time during his incarnation. He has moronic, idiot opinions that know one cares about. At least -mpatel100180 understands the car industry and posts replies that make sense and provide value.

MDarringer...being a Hyundai salesperson or whatever does not make you an expert. Most of your posts on here are full of bias. Genesis will steal most of their sales from Acura/Infiniti/Lincoln etc...they will not touch Lexus/BMW/Audi/MB. If they decide to build out a new dealer network, and come up with compelling product priced 20% below Lexus and 30% below the Germans then they may have a shot.

Simply copying the Lexus playbook from 1989 (minus significantly leading the industry in reliability) is not going to work.

Being worse or equal to the German brands in reliability is not going to work.