Estimated Price of New Equus in US

[Mark_888]

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.

Yes, I agree about what is bread and butter for Hyundai. They aren't going to care how many Equus units they sell, it is just for show, and to improve the brand image.

The "marketing" problem that Hyundai has had with the Sonata (and others) is that not very many potential buyers (those who shop for Accord, Camry, Altima, etc) are even considering the Sonata . Hyundai tracks these numbers very closely, and they think improving the brand image will get more people in the show room to see the Sonata.

The importing of the Equus is a part of improving the brand image, even if only a small part. The percentage of people who will consider a Sonata when shopping for an Accord, Camry or Altima has risen in recent years, but that increase is not all attributable to the improvement in the Sonata product itself (if it were, then every buyer of a car in that class would at least look at the Sonata). Hyundai still has brand perception problem to overcome in the minds of many potential car buyers.

Edit: BTW, why do you think so many Genesis owners want to remove the Hyundai badging? And why do think Hyundai (not necessarily the dealers) wants to sell it as a Hyundai nameplate?

 

[dataguy]

I think I've sold two 2011 Sonatas to people I work with for their wives. They're going to replace a Murano and a Camry. Price, styling, and seeing my Genesis convinced them to consider Hyundai.

I wish I could get a referral commission

 

[DavidNJ]

I've been 'selling' Sonatas since they had stability control standard. The Hyundai problem alluded to isn't image...its awareness.

 

[Mark_888]

I've been 'selling' Sonatas since they had stability control standard. The Hyundai problem alluded to isn't image...its awareness.

Same thing. Awareness that Hyundai now makes better quality cars then one would expect based on their public image . And also, if they put their mind to it, awareness that Hyundai can match the technology and quality of any other car manufacturer (Genesis and Equus), which is not the image that most people have of Hyundai at the moment.

 

[Hghwy52]

I don't know how much the Equus will improve Hyundai's image. If they only plan on selling 1000 to 1500 per year, most people will never see one or recognize it if they do. And how many dealers with a predominately blue collar clientele will actually rope off an area (which Hyundai wants) to display one.

Also, it's an open question how well the Equus will stack up against the LS460 - the current one and, more importantly, the redesign due for model year 2012 or 2013.

I'm still considering the Equus for my next car (an easy call at 50K), but if it's almost as good as a Lexus for 10K less I'll either go with the Lexus or stick with a Genesis.

 

[DavidNJ]

Sales pipeline 101:

1) Awareness

2) Desire

3) Action

People buying Camry's and Accord don't think Sonata. They don't think Mazda 6, Fusion, Malibu, Altima, or Legacy either. Think of the poor Mercury dealer trying to sell in this space. GM closed two divisions selling in the space. And other than a rental lot, have you ever seen a Chrysler Sebring?

The 2006 Sonata had safety equipment its competitors didn't match. The 2011 Sonata adds styling, interior and exterior, chassis and powertrain engineering to the mix.

The Genesis? If you consider it a step up from a G37, it is a $50k car selling for $40k. If you consider the G37 equivalent...a harder decision. Against an ES350/IS250, an easier decision for the Genesis.

The Equus will need a 20-25% margin under its established competitors. You have the Genesis sized E-class, 5-series, A6, GS350, M37 all at that price point or just above that price point. And then the LS460.

There won't be enough Equus advertising to create sufficient awareness to have an impact. However, at $50k, I'd consider it. Still, I prefer the size of the Genesis, just want the missing features that are on the Equus (pneumatic suspension, ventilated passenger seat, front camera, etc.)