Estimated Price of New Equus in US

[Mark_888]

Not sure if this has been posted yet, but here is some info on MSRP for the Equus in the US (prices and specs subject to change without notice):

• Equus 5 Passenger (price range of $54K - $59K)
• Equus w/ Ultimate Package 4 Passenger (additional $6,500 MSRP higher than Equus 5 passenger model)

Key Standard Equipment:

POWERTRAIN & CHASSIS

• 4.6L DOHC Tau V8 Engine
• 6-Speed automatic transmission with SHIFTRONIC
• Electro-Hydraulic Power Steering (EHPS)
• Electronically Controlled Air Suspension (EAS)
• 19" chrome alloy wheels with P245/45R19/P275/40R19 tires
• Dual exhaust integrated with rear bumper

SAFETY FEATURES

• 4-Wheel disc brakes with Anti-lock Braking System (ABS)
• Vehicle Stability Management (VSM) system w/ collision warning
• Electronic Stability Control (ESC) with TCS and Brake Assist
• 9 Airbags: Advanced dual front airbags, front and rear seat-mounted side-impact airbags, driver knee airbag, and roof-mounted side-curtain airbags
• Electronic active front head restraints w/ power controls
• Advanced motorized front pre-collision seatbelt pretensioners
• Lane-departure warning system (LDWS)
• Smart Cruise Control w/ Pre-safe Seatbelt
• Tire Pressure Monitoring System (TPMS)
• High Intensity Discharge (HID) headlights with LED turn signal indicators
• Adaptive Front Lighting System (AFLS) with auto-leveling
• Fog lights & Automatic headlights
• Front and rear parking assistance system and rearview camera
• Dual power-folding heated auto-dimming side mirrors w/ turn signal indicators and approach lamps

COMFORT, CONVENIENCE, & COMMAND

• Power trunk lid
• Proximity key entry with push-button start
• Illuminated scuff plates + I/S door handles + Door armrest
• Premium leather seating surfaces and suede roof trim (headliner)
• 12-way power driver's seat ( w/ lumbar + seat cushion extender) and 10-way power front passenger seat
• Heated/Cooled front seats
• Heated, wood-trimmed & leather-wrapped steering wheel
• Power tilt-and-telescopic steering wheel
• Integrated Memory System (IMS) for driver-side seat, mirror and steering wheel
• Leather-wrapped dash and real wood interior trim
• Electroluminescent cluster (Supervision) with 3.5" TFT LCD screen
• Electronic parking brake w/ automatic vehicle hold
• Power windows with auto-down/up
• Navigation system w/ DIS and multimedia controller
• Lexicon 7.1 Discrete surround sound audio system with 17 speakers
• iPod/USB and MP3 auxiliary input jacks
• iPod connection cable
• Bluetooth hands-free phone system
• Dual Automatic Temperature Control with Air Quality System
• Windshield washer heater, rain-sensing wipers with auto windshield defogging
• Electrochromic auto-dimming inside rearview mirror with HomeLink and compass
• Acoustic Laminated Windshield , front and rear side windows
• Power tilt-and-slide glass sunroof
• 60/40 power reclining rear seat
• Power rear sunshade
• Luggage net
• Premium-grade floor mats
• Premium-grade trunk cargo mat
• Premium first-aid kit

The Ultimate Package 4 Passenger version has the above features, but with 2 passenger rear seating (with large console between the two rear seats) that is designed for someone who has a chauffeur. It includes all kinds of fancy stuff such as increased rear legroom, heated/cooled rear seats, seat massage, rear audio controls, video, cold storage, etc (sorry, don't have all the details but I think most of you have seen the pics).

More details will released on April 1st.

 

[akuma]

priced like Phaeton = fail

 

[jwaters943]

The Phaeton went on sale in 2003 at a base price of $64600 vs. $54-59k for the 2011 Equus. In inflation adjusted numbers the base price of the Equus appears to be about $10-14k lower. The Equus' closest competitor, the LS460, is $7-12k more (base model comparison). If I were a betting man, I would bet the base price is right around $55k and not $60k.

In any even, aren't all 2011 Equuses pretty much spoken for? Hyundai is only hoping to sell 100-200 per month so they shouldn't have too much problem meeting those very modest sales goals.

 

[Mark_888]

In inflation adjusted numbers the base price of the Equus appears to be about $10-14k lower.

I doubt there has been much inflation since 2003, especially in auto prices.

 

[DavidNJ]

$12k difference wouldn't be enough. Over half the difference would be recovered in a high residual. For example, 50% of $55k = $27.5k, and $27.5k depreciation. 60% of $70k = $42k, $28k depreciation (the part paid in the lease). So it would lease for the same monthly payment.

Phaeton had the same problem. The luxury dealers also have a premium sales and service experience. That is the part VW and Hyundai can't offer. In their case the car is sold side-by-side with sub-$20k cars in dealers where sub$30k cars are the bread and butter. MB, BMW, Lexus have no cars under $35k and the bread and butter can go over $50k or higher.

The Equus would have to be under $50k for the base model if they want to sell it.

 

[jwaters943]

I doubt there has been much inflation since 2003, especially in auto prices.

In the full size luxury segment, are you kidding me? The Phaeton was released approx. 7 years ago and saw a fairly significant price increase in it's second year. Granted, it wasn't on sale in North America for very long, so I also included pricing for the Audi A8. The Audi A8, another niche player in the North American full-size luxury sedan market, has increased in price sharply over the past few years (an increase of approx. $10k from 2004 to 2010). Price increases are common in this segment. You can bet if the Phaeton were on sale here today it would start at $70k+.


2004 Phaeton V8 pricing: http://autos.aol.com/cars-Volkswage...ed?trimDesc=USB40VWC091A0:4.2L:6_spd+w/OD:V_8

2005 Phaeton V8 pricing: http://autos.aol.com/cars-Volkswage...ed?trimDesc=USB50VWC091A0:4.2L:6_spd+w/OD:V_8

2006 Phaeton V8 pricing: http://autos.aol.com/cars-Volkswage...ed?trimDesc=USB60VWC091A0:4.2L:6_spd+w/OD:V_8

And the Pheaton's aluminum-bodied brother for reference, the Audi A8:

2004 Audi A8L 4.2: http://autos.aol.com/cars-Audi-A8-2...ed?trimDesc=USB40AUC041A0:4.2L:6_spd+w/OD:V_8

2005 Audi A8L 4.2: http://autos.aol.com/cars-Audi-A8-2...ed?trimDesc=USB50AUC041A0:4.2L:6_spd+w/OD:V_8

2006 Audi A8L 4.2: http://autos.aol.com/cars-Audi-A8-2...ed?trimDesc=USB60AUC041A0:4.2L:6_spd+w/OD:V_8

2007 Audi A8L 4.2: http://autos.aol.com/cars-Audi-A8-2...ed?trimDesc=USB70AUC041A0:4.2L:6_spd+w/OD:V_8

2008 Audi A8L 4.2: http://autos.aol.com/cars-Audi-A8-2...ed?trimDesc=USB80AUC041A0:4.2L:6_spd+w/OD:V_8

2009 Audi A8L 4.2: http://autos.aol.com/cars-Audi-A8-2...ed?trimDesc=USB90AUC041A0:4.2L:6_spd+w/OD:V_8

2010 Audi A8L 4.2: http://autos.aol.com/cars-Audi-A8-2...ed?trimDesc=USC00AUC041A0:4.2L:6_spd+w/OD:V_8

 

[jwaters943]

$12k difference wouldn't be enough. Over half the difference would be recovered in a high residual. For example, 50% of $55k = $27.5k, and $27.5k depreciation. 60% of $70k = $42k, $28k depreciation (the part paid in the lease). So it would lease for the same monthly payment.

Phaeton had the same problem. The luxury dealers also have a premium sales and service experience. That is the part VW and Hyundai can't offer. In their case the car is sold side-by-side with sub-$20k cars in dealers where sub$30k cars are the bread and butter. MB, BMW, Lexus have no cars under $35k and the bread and butter can go over $50k or higher.

The Equus would have to be under $50k for the base model if they want to sell it.

How do you know what the depreciation will be? You could assume that it will be poor (actually all vehicles in this price range suffer from sharp depreciation), but if it's anything like the ALG projections for the Genesis and new Sonata, it will be at the top of it's segment. And lease payments are not merely determined by depreciation. They can be heavily subsidized to lower the payment.

Furthermore, your statement about BMW, BMW and Lexus isn't quite true. The C and GLK start just under $35k. The 1-Series starts at just under $30k and the 3-Series starts at approx. $33k. The Lexus IS starts at $33k. FWIW, these brands are also planning on launching lower priced models in North American soon (a new, FWD BMW below the 1 Series, a B Class MB, and a CT hybrid for Lexus are all on the way). And Audi may launch the new A1 here as well which would start in the mid-$20k range.

 

[Mark_888]

In the full size luxury segment, are you kidding me? The Phaeton was released approx. 7 years ago and saw a fairly significant price increase in it's second year. Granted, it wasn't on sale in North America for very long, so I also included pricing for the Audi A8. The Audi A8, another niche player in the North American full-size luxury sedan market, has increased in price sharply over the past few years (an increase of approx. $10k from 2004 to 2010). Price increases are common in this segment. You can bet if the Phaeton were on sale here today it would start at $70k+

Price increases of the Audi A8 have been due mostly to large increases in the value of the Euro over the US Dollar in that time frame. They have tried to hold the line on most other models despite the dollar devaluation, but on a luxury car like the A8, they don't even bother since price is usually not a factor in the buying decision when you get over $80K.

What is the price increase of the Sonata over since 2003 (for equivalent equipped models)?

 

[dev]

I don't understand how all the Equus have been spoken for. I have asked my dealer to advise me when it is possible to order one and he has no information. At 54,000 I would buy one sight unseen.

 

[Mark_888]

Folks, the Equus is being introduced in the US to bolster the Hyundai brand image, not to sell a lot of units. It doesn't matter how many they sell. A potential customer considering a new Sonata will see the Equus in the show room, and fell better about buying the smaller, but still nicely equipped Sonata. You can't make me believe that MB could sell any of their crappy C models if they didn't also make the more prestigious E and S models.

Remember that this car was developed and cost-justified for the captive Korean market, and they originally had no plans to introduce to the US market.

Hyundai has about 785 US dealers. If each one sells and average of 2-3 Equus units per year, that will be fine (one of them will probably be purchased by the dealership owner or GM). Maybe they will just have one on the lot as a courtesy/show car.

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[imperial4ever]

I think they should be able to sell better than 2-3 a year per dealership. I know many well-to-do Hyundai owners who would be glad to step up to an Equus. I hope they make the brochure beautiful for us to droooooool over at home! I would also hope they incorporate the 8 speed auto?

 

[Mark_888]

I think they should be able to sell better than 2-3 a year per dealership. I know many well-to-do Hyundai owners who would be glad to step up to an Equus. I hope they make the brochure beautiful for us to droooooool over at home! I would also hope they incorporate the 8 speed auto?

You can drool over your keyboard, since there will be a website.

Unless the current Equus has an 8-speed, then very unlikely (specs above say 6-Speed automatic transmission with SHIFTRONIC). If they put one in for 2011, that is another story.

 

[DavidNJ]

Why the Genesis/Equus may be upscale cars, that image doesn't help sell Accents and Sonatas. I would imagine it may even hurt.]

As far a resale, it depends on demand. Since a $35k Nissan, Acura, etc would have all the features of a 3-4 year old BMW, MB, Lexus, the used luxury cars have value because of what the brand symbolizes. And, bluntly, a 3-4 year-old Hyundai doesn't symbolize much.

The ALG residuals reported on KBB for a 3-year old Genesis V8 is 50%, for an LS460 57%. Note that the Lexus is sold at a discount to MSRP. The discount comes off the depreciated amount included in the lease. Cars Direct has it at 5% on the Lexus, a bit less on the Genesis (4.5%).

The Equus will be readily available at $55k. Note, there really isn't 'low' quantity. Hyundai has stock parts and train service people at all dealerships. Even a low volume vehicle has to lots of costs.

 

[akuma]

The Phaeton went on sale in 2003 at a base price of $64600 vs. $54-59k for the 2011 Equus. In inflation adjusted numbers the base price of the Equus appears to be about $10-14k lower. The Equus' closest competitor, the LS460, is $7-12k more (base model comparison). If I were a betting man, I would bet the base price is right around $55k and not $60k.

In any even, aren't all 2011 Equuses pretty much spoken for? Hyundai is only hoping to sell 100-200 per month so they shouldn't have too much problem meeting those very modest sales goals.

we're currently in a recession so transaction prices for cars (high end or whatever) have fallen a bit since 2007. the Japanese luxury makes (Lexus and Infiniti) have increased their prices maybe 10% at most since 2003 levels. wages certainly haven't gone much higher on average than 2003 levels.

the Phaeton may have been as much as $10k higher but it didn't take long for $10-15k discounts to start appearing. even then they could barely move them.

 

[Mark_888]

Why the Genesis/Equus may be upscale cars, that image doesn't help sell Accents and Sonatas. I would imagine it may even hurt.

I don't know how old you are, but the history of Hyundai in the US (which got off to a very rocky start in terms of quality) is such that they need to demonstrate that they know how to make high quality cars. Hyundai wants people shopping for an Accord, Camry, Altima, etc to consider a Hyundai, something that the majority of those buyers have not done in the past (HMA tracks this number very closely and it is definitely improving from rather dismal levels just five years ago).

I can't imagine how the Equus could hurt sales of Sonatas, anymore than Acura, Lexus, or Infiniti hurts sales of Honda, Toyota, or Nissan.

 

[DavidNJ]

Buyers of $15k feel they are paying too much if the showroom is full of $40-60k cars. Ditto the other way; buyers of expensive cars don't feel the manufacturer is necessarily going to offer the depth of product if they associate it with in expensive cars.

Nissan has had GT-Rs stacked 2 deep at dealers. If they had sold it as an Infiniti everyone would have been gone. A Nissan dealer doesn't have the sales and service experience you would expect in an $80k car.

While BMW and MB have cars that sticker in the $30k range, the models that do are generally optioned into the $40k range.

The models that add luster are ES350 Lexus and XLS Camrys, EL Leather Accords, GTI Golfs, etc. High-end models built on the same platform.

 

[Mark_888]

Buyers of $15k feel they are paying too much if the showroom is full of $40-60k cars.

Whoa!!!! I completely disagree with you.

Ditto the other way; buyers of expensive cars don't feel the manufacturer is necessarily going to offer the depth of product if they associate it with in expensive cars.

Nissan has had GT-Rs stacked 2 deep at dealers. If they had sold it as an Infiniti everyone would have been gone. A Nissan dealer doesn't have the sales and service experience you would expect in an $80k car.

Agree with you here, but the reason that Hyundai is importing the Equus is to improve the brand image, not to make money selling Equus units.

While BMW and MB have cars that sticker in the $30k range, the models that do are generally optioned into the $40k range.

The models that add luster are ES350 Lexus and XLS Camrys, EL Leather Accords, GTI Golfs, etc. High-end models built on the same platform.

Genesis and Equus add luster to Hyundai brand, trust me. You never did say how old you are and whether you remember that the Hyundai brand was in the toilet in the 1980's and early 1990's.

 

[DavidNJ]

Hyundai entered the US market competing with the Yugo at a time when Korea didn't have the engineering and manufacturing skills to match Japan and Europe. The 10 year warranty was their defense.

That is totally different from selling $60k cars next to $14k cars. In the market as a whole, the only place that differential is done is with SUVs at Chevy and Toyota. If it was a successful strategy for cars it would be done by other manufacturers.

Note that it isn't done in other products either. Whether it is a camera, TV, dishwasher, or blue jeans, the lower price point (say Old Navy) is sold in a different store and brand then the higher price point (The Gap).

 

[Mark_888]

Hyundai entered the US market competing with the Yugo at a time when Korea didn't have the engineering and manufacturing skills to match Japan and Europe. The 10 year warranty was their defense.

That is totally different from selling $60k cars next to $14k cars. In the market as a whole, the only place that differential is done is with SUVs at Chevy and Toyota. If it was a successful strategy for cars it would be done by other manufacturers.

Note that it isn't done in other products either. Whether it is a camera, TV, dishwasher, or blue jeans, the lower price point (say Old Navy) is sold in a different store and brand then the higher price point (The Gap).

The 10 year warranty came much later, after the image was already in the toilet. That was not so much a defense, as it is was a repair job to help their image.

There is an opening at Hyundai Motor America for their VP of marketing (previous one, Joel Ewanick, just went to Nissan). Maybe you should apply since you think you know more about marketing then he did (import of Genesis and Equus decisions made on his watch). But considering the success of Hyundai marketing recently, I doubt they will like your ideas. While at Hyundai, Joel Ewanick earned accolades including:

• Chief Marketing Officer of the Year (2009) from Forbes,
• Grand Marketer of the Year (2009) from Brandweek, and
• Marketer of the Year (2009) from Advertising Age

 

[DavidNJ]

All before the Genesis...but the Genesis is just a footnote. The Hyundai bread and butter is the Sonata, Elantra, Tucson, Santa Fe, and Genesis Coupe. The Accent, Azera, Vera Cruz, and Genesis exist on the periphery. I don't know how it is where you live, but here every dealer is stuffed with Genesis sedans and generally try to avoid the slow moving Azera.

The Sonata has really been a story over the past 5 years. However that has been more a story that leveraged product engineering rather than product marketing.