Have a Black Card? Buy a Hyundai.

[YEH]

But today Hyundai U.S. Chief John Krafcik shared a curious bit of info that seems almost implausible. The brand also seems to appeal to the very wealthy.

American Express Centurion Card holders – those people who are rich enough that they are offered a “Black Card” with a nearly unlimited line of credit and a host of other niceties – buy Hyundais at a disproportionately high rate compared with other cars. Indeed, 6% of Black Card holders say they have a Hyundai in the garage. That’s tied with Bentley and Audi. Others on the list: BMW is tops with 22%; then Mercedes with 21%; Porsche with 15%; Lexus, 11%; Ferrari, 8%; and Acura, 7%. That puts a lot of interesting brands below it.

“I know you all can’t believe this,” Krafcik said in a presentation today at the company’s U.S. engineering and research center near Ann Arbor.

The average Centurion has $16.3 million in assets and an annual household income of $1.3 million. Krafcik bemusedly mentioned that he has never been offered a Centurion Card invitation.

The next gen Genesis will likely see a 30-35% increase in sales just due to getting AWD.

Krafcik also hinted that the Genesis will soon be getting all-wheel-drive, but not in the 2012 model year. The lack of the AWD feature may have inhibited sales of the rear-wheel-drive car in the Northeast and Midwest, where the take rate on the feature is about 70% among competitors, he said.

http://blogs.wsj.com/drivers-seat/2011/07/08/have-a-black-card-buy-a-hyundai/?mod=WSJBlog


Hey NYCGPS - show your parents this WSJ article.

 

[Mark_888]

Somehow, I suspect that most of those Black cardholders are in Korea.

 

[Junkie49]

Somehow, I suspect that most of those Black cardholders are in Korea.

Nah, I think they would prefer BMW, MBenz, Porsche and up.

But today Hyundai U.S. Chief John Krafcik shared a curious bit of info that seems almost implausible. The brand also seems to appeal to the very wealthy.

American Express Centurion Card holders – those people who are rich enough that they are offered a “Black Card” with a nearly unlimited line of credit and a host of other niceties – buy Hyundais at a disproportionately high rate compared with other cars. Indeed, 6% of Black Card holders say they have a Hyundai in the garage. That’s tied with Bentley and Audi. Others on the list: BMW is tops with 22%; then Mercedes with 21%; Porsche with 15%; Lexus, 11%; Ferrari, 8%; and Acura, 7%. That puts a lot of interesting brands below it.

“I know you all can’t believe this,” Krafcik said in a presentation today at the company’s U.S. engineering and research center near Ann Arbor.

The average Centurion has $16.3 million in assets and an annual household income of $1.3 million. Krafcik bemusedly mentioned that he has never been offered a Centurion Card invitation.

I assume the black card holders bought Equus to be seen unique among collegues(and that fridge, cheapest car with fridge!) or Genesis coupe for his red haired stepchild.

If I had lots of money to burn, I would rather get car with all the luxurious features I can get with prestigious name brands. Rest of us go for Hyundai as they are known to be very good in price/performance or price/luxury on their car.

Krafcik also hinted that the Genesis will soon be getting all-wheel-drive, but not in the 2012 model year. The lack of the AWD feature may have inhibited sales of the rear-wheel-drive car in the Northeast and Midwest, where the take rate on the feature is about 70% among competitors, he said.

They should've had AWD from the start. There was no reason to shoo away the AWD customers and now trying to earn their business. Given that their competitor models had them for long time.

 

[NYCGPS]

Somehow, I suspect that most of those Black cardholders are in Korea.

I'm not 100% sure if it's a "Korea" thing, but my friend's father does have a "Black AMEX" card. He is in Asia. Not Korea.

You need to have excellent credit/reputation, at least 10 Million in asset, and have been an AMEX card member with AMEX before they will even consider an invitation. My friend's dad got it fast cuz he is a billionaire.

I heard that he Rarely use it though. Cuz honestly his company (which is really his) is paying for pretty much most of his purchases. So carrying another plastic is almost meaningless.

 

[Mark_888]

Nah, I think they would prefer BMW, MBenz, Porsche and up.

Yes they do, but almost all of them have at least one Hyundai in the garage, and I would not assume it is Genesis/Equus. In South Korea, about 90% of all cars sold are from South Korean automakers, and Hyundai/Kia group is the 800 lb gorrila in Korea.

Foreign car brands are expected to achieve a market share of more than 10 percent this year [2011] for the first time as customers are attracted by greater variety of more affordable models.
http://autonews.gasgoo.com/global-news/south-korea-market-share-for-foreign-cars-rises-110404.shtml

 

[YEH]

Somehow, I suspect that most of those Black cardholders are in Korea.

And most of them ride in the back of an S Class or 7 Series - which their corporation purchases.

I assume the black card holders bought Equus to be seen unique among collegues(and that fridge, cheapest car with fridge!) or Genesis coupe for his red haired stepchild.

I would figure most of them being small business owners; they're the type who aren't brand loyal and buy on value (these are the same type of buyers who flocked to the LS400).

They should've had AWD from the start. There was no reason to shoo away the AWD customers and now trying to earn their business. Given that their competitor models had them for long time.

I'm thinking Hyundai figured that they needed to get the reliability right for the Genesis and Equus before they add AWD.

All the luxury brands (aside from Audi) gradually added AWD to their sedan lineups. Toyota had an issue w/ the AWD system for the GS.

 

[Mark_888]

I'm not 100% sure if it's a "Korea" thing, but my friend's father does have a "Black AMEX" card. He is in Asia. Not Korea.

I think you are right, it is somewhat of an "Asian thing." You don't find "Millionaire Next Door" types in Asia like you do in the US (based on a book of that title).

 

[Mark_888]

I would figure most of them being small business owners; they're the type who aren't brand loyal and buy on value (these are the same type of buyers who flocked to the LS400).

Not sure about that, since the Black Card is about 95% status and 5% usefull features (which means 95% waste of money). As previously posted, probably mostly Asian and Middle East card holders is my guess.

According to Wikipedia the annual fee in the US is $2,500 plus a one-time joining fee of US $5,000.

 

[YEH]

^ Could be the case.

But a lot of these business owners got started w/ AMEX via Costco.

 

[Mark_888]

^ Could be the case.

But a lot of these business owners got started w/ AMEX via Costco.

I find it hard to believe that anyone with a AMX Black card would get caught dead in Costco. I know Warren Buffet loves Costco, but I am pretty sure he doesn't have a Black AMX (especially since he owns that rent-a-jet company and flies private jets when he travels).

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[Junkie49]

All the luxury brands (aside from Audi) gradually added AWD to their sedan lineups. Toyota had an issue w/ the AWD system for the GS.

The thing was that people were disappointed that Genesis did not come with AWD because they thought it was necessary to win over AWD customers who also wants luxury and power in value. I understand that they needed reliability check but look in this way, Hyundai was already late to the luxury car market. What Hyundai had to do to make up for it was by having full trim and line-up ready.

It just seems to me that Hyundai started the Genesis and way later Equus just to test waters before fully commiting to the luxury market. It feels more like they happened to make Genesis by mistake, copy pasted luxury brand options for cheap and bam! there Genesis.

Heck, I think if they delayed Genesis a year later with full AWD option, improved suspension, maybe GDI engine from the start(?) and started a new luxury brand (Genesis or whatever) they might have fared way better than what they are doing now.

 

[Mark_888]

The thing was that people were disappointed that Genesis did not come with AWD because they thought it was necessary to win over AWD customers who also wants luxury and power in value. I understand that they needed reliability check but look in this way, Hyundai was already late to the luxury car market. What Hyundai had to do to make up for it was by having full trim and line-up ready.

It just seems to me that Hyundai started the Genesis and way later Equus just to test waters before fully commiting to the luxury market. It feels more like they happened to make Genesis by mistake, copy pasted luxury brand options for cheap and bam! there Genesis.

Heck, I think if they delayed Genesis a year later with full AWD option, improved suspension, maybe GDI engine from the start(?) and started a new luxury brand (Genesis or whatever) they might have fared way better than what they are doing now.

Genesis and Equus would (and did) exist without the US market. Hyundai owns the Korean market and can sell a fairly large quantity over there.

The primary thinking of HMA in importing the Genesis and Equus is to build the Hyundai brand name, not necessarily make a fortune selling these luxury cars. If you know anything about the history of Hyundai in the US, you would understand why that is so important, and why they want to call them Hyundai in the US instead of some other luxury brand. Even today, a surprising number of Camry and Accord shoppers will not even consider a Sonata in their search, and Hyundai's strategy is to change that, not necessarily make a killing in the luxury car market (which is paltry by comparison to the 3 million vehicles they expect to sell worldwide in 2011).

Another problem with the AWD model is loss of fuel economy, something that Hyundai is extremely concerned about (although RWD simply does not sell well in many parts of the US, so they obviously need to do it).

 

[NYCGPS]

Genesis and Equus would (and did) exist without the US market. Hyundai owns the Korean market and can sell a fairly large quantity over there.

The primary thinking of HMA in importing the Genesis and Equus is to build the Hyundai brand name, not necessarily make a fortune selling these luxury cars. If you know anything about the history of Hyundai in the US, you would understand why that is so important, and why they want to call them Hyundai in the US instead of some other luxury brand. Even today, a surprising number of Camry and Accord shoppers will not even consider a Sonata in their search, and Hyundai's strategy is to change that, not necessarily make a killing in the luxury car market (which is paltry by comparison to the 3 million vehicles they expect to sell worldwide in 2011).

Another problem with the AWD model is loss of fuel economy, something that Hyundai is extremely concerned about (although RWD simply does not sell well in many parts of the US, so they obviously need to do it).

Most people cannot drive RWD properly, or should I say most people shouldn't have DL in the first place? anyway they think RWD is so "hard to control" and slides left and right, when the fact is that I find RWD really easy to control and it out handles all FAILEDWHEELDRIVE car anyday.

AWD is good for north east or whatever places that see snow regularly. like here in NYC, damn last winter was HELL, but even with AWD, no one can move their car anywhere ... it might be nice to have AWD as an option, but for me, 90% chance I still won't get it. That's just me tho.

 

[YEH]

Somehow, I suspect that most of those Black cardholders are in Korea.

I think it's doubtful that the list is of worldwide cardholders.

7% of cardholders are listed as being Acura owners and Acura is only sold in NA and in China (where it's not a big seller).

I find it hard to believe that anyone with a AMX Black card would get caught dead in Costco. I know Warren Buffet loves Costco, but I am pretty sure he doesn't have a Black AMX (especially since he owns that rent-a-jet company and flies private jets when he travels).

Why?

The average household income for Costco members is over $250K, and for those w/ business accounts, it's more.

Costco sells jewelry that can go as high as half a million.

I know a couple of Black Card holders who shop at Costco regularly.

The thing was that people were disappointed that Genesis did not come with AWD because they thought it was necessary to win over AWD customers who also wants luxury and power in value. I understand that they needed reliability check but look in this way, Hyundai was already late to the luxury car market. What Hyundai had to do to make up for it was by having full trim and line-up ready.

Reliability is the key for Hyundia in the luxury segment, as well as overall.

The main reason why Hyundai sales have increased over the past decade is due to improved reliability.

Heck, I think if they delayed Genesis a year later with full AWD option, improved suspension, maybe GDI engine from the start(?) and started a new luxury brand (Genesis or whatever) they might have fared way better than what they are doing now.

Right now, Hyundai is doing better in combined sales than either Lexus or Infiniti in the the mid and full-size sedan segments (granted, Infiniti no longer has a full-size).

A separate brand w/o a more extensive lineup would have been a financial albatross for Hyundai.

 

[Mark_888]

The average household income for Costco members is over $250K, and for those w/ business accounts, it's more.

Costco sells jewelry that can go as high as half a million.

You must shop at a different Costco that I do. Yes, I saw a few diamond rings for that much on their online shopping website (not in-store) but only one or two items like that sold through "affiliates."

I know a couple of Black Card holders who shop at Costco regularly.

I am pretty sure they only go there for the quarter-pound 100% beef hot dog or polish sausage and 20 oz drink (with free refills), both for only $1.50 at the Costco food court.

 

[waveman]

I am pretty sure they only go there for the quarter-pound 100% beef hot dog or polish sausage and 20 oz drink (with free refills), both for only $1.50 at the Costco food court.

Actually, they go because it's the best place to buy 50 gal. drums of peanut butter. Kidding aside, though, I know many people in the >$250k/yr demographic who shop there.

 

[NYCGPS]

I am pretty sure they only go there for the quarter-pound 100% beef hot dog or polish sausage and 20 oz drink (with free refills), both for only $1.50 at the Costco food court.

One of my friend makes at least 300K a year (also explains why he got 5 new cars in 2 years. he just trade it in without breaking a sweat) and he loves Costco. why? cuz he is a fat ass and he buys so much crap there. It's just him and his wife and he bought the biggest family fridge at Sears to "Store" food. go figure

 

[Mark_888]

One of my friend makes at least 300K a year (also explains why he got 5 new cars in 2 years. he just trade it in without breaking a sweat) and he loves Costco. why? cuz he is a fat ass and he buys so much crap there. It's just him and his wife and he bought the biggest family fridge at Sears to "Store" food. go figure

$300K family income isn't really that much if husband and wife are both professionals. If one lives in NY, $300K isn't that much for a single working professional, but cost of living is high.

There is nothing wrong with getting appliances at Sears. They sell more different appliance brands than any other retailer.

 

[Mark_888]

Actually, they go because it's the best place to buy 50 gal. drums of peanut butter. Kidding aside, though, I know many people in the >$250k/yr demographic who shop there.

$250K or $500K is not the average yearly income for AMX Black Card members. OTOH, the Visa Black card is only $500 per year, and fairly reasonable for what you get if you spend a lot of time traveling.

 

[Glashub]

Most people cannot drive RWD properly, or should I say most people shouldn't have DL in the first place? anyway they think RWD is so "hard to control" and slides left and right, when the fact is that I find RWD really easy to control and it out handles all FAILEDWHEELDRIVE car anyday.

AWD is good for north east or whatever places that see snow regularly. like here in NYC, damn last winter was HELL, but even with AWD, no one can move their car anywhere ... it might be nice to have AWD as an option, but for me, 90% chance I still won't get it. That's just me tho.

Take an Acura TL SH-AWD for a ride. Push it hard down a serpentine street and into the curves. You'll soon agree I think that Honda developed a system for truly driving a big car like a sports car. It defies logic.

Here is LA we have lots of curves...little snow.