Hyundai considers larger Genesis-based premium SUV

[Sal Collaziano]

SEOUL (Reuters) -- Hyundai Motor Co., whose sedan-heavy lineup has held it back in a U.S. market powered by SUVs, is considering developing larger SUVs based on its Genesis luxury sedan, four people familiar with the matter told Reuters.

However, it could take two or three years for the vehicle to go on sale and the South Korean firm's poor track record with bigger SUVs, and its lack of pickup trucks, underscore the challenges in cracking the high-margin market for utility vehicles dominated by U.S. and Japanese rivals.

There is no certainty Hyundai will bring the new vehicle to market, one of the people said, given concerns about its lack of brand power in the higher-priced SUV segment, and whether oil prices could surge again and erode the market for gas-guzzlers.

"We are timid when it comes to bigger SUVs," said the person familiar with Hyundai's vehicle development who did not want to be named as he is not authorized to speak to the media.

The automaker is considering an internal proposal made last year to develop Genesis-based SUVs to fill a gap at the high end of its SUV range, said a second person with knowledge of the matter. The aim would be to plug into the appeal of the Genesis to elevate Hyundai's overall brand image.

U.S. sales of the Genesis jumped by more than a third in January-May to nearly 15,000, far outpacing Hyundai's overall sales gains of just 2.2 percent.

At the end of next month, Hyundai will halt production of its biggest SUV, the Veracruz, according to the newspaper published by its South Korean labor union. Last year, Hyundai sold fewer than 5,000 of its Veracruz, all in South Korea, compared with 54,325 globally in 2007. Continue reading...

 

[Huddleston]

like a Veracruz x2... I would really look forward to this if it comes to fruition. With kids in the plans for the next few years this could look great next to the Genesis in the garage.

 

[Sal Collaziano]

like a Veracruz x2... I would really look forward to this if it comes to fruition. With kids in the plans for the next few years this could look great next to the Genesis in the garage.

Have you been in the new Santa Fe? It's actually an improvement over the Veracruz. It's a pretty luxurious crossover SUV. There really does need to be a "Genesis" model but Hyundai isn't liking the idea of the winged badge lately. So I wonder if it will ever happen. I get the feeling they may just want to stick with improving on the Santa Fe. At least until they create a Genesis sub brand - IF they do...

 

[OneFunGenesis]

IF they don't, they'll shoot their brand in the foot with a 50 cal....

 

[Sal Collaziano]

IF they don't, they'll shoot their brand in the foot with a 50 cal....

The Genesis and Equus have definitely helped move Hyundai up the respectability ladder. However, I'd like to see a separate brand and separate dealer network for their products as they rise in price. If Hyundai is going to make a car that can play in the same league as the BMW 5-Series - why would they want to continue selling it at a huge discount? They'd be leaving a lot of money on the table. Creating a sub brand will cost money but it'll eventually earn them more...

 

[YEH]

Have you been in the new Santa Fe? It's actually an improvement over the Veracruz. It's a pretty luxurious crossover SUV. There really does need to be a "Genesis" model but Hyundai isn't liking the idea of the winged badge lately. So I wonder if it will ever happen. I get the feeling they may just want to stick with improving on the Santa Fe. At least until they create a Genesis sub brand - IF they do...

The new Sorento is even nicer/more luxurious than the Santa Fe (looks better, too).

The higher-ups at Hyundai have really shot the pooch when it has come to long-term planning.

Should have started on another NA plant a couple of years ago and should have moved more quickly to add to their limited CUV lineup, instead of wasting precious time and resources on a dog like the Aslan sedan (should have started development on a Genesis based CUV as soon as the 2G Genesis was finished).

In this way, Hyundai is much like Cadillac - overly reliant/focused on sedan sales when the tide had been turning to CUVs (anyone with half a brain saw this coming years ago).

Hyundai's management has also been overly focused on the BRIC countries - they (China and India) already got a subcompact CUV while the US/Europe will have to wait a couple more years.

 

[PMCErnie]

The new Sorento is even nicer/more luxurious than the Santa Fe (looks better, too).

The higher-ups at Hyundai have really shot the pooch when it has come to long-term planning.

Should have started on another NA plant a couple of years ago and should have moved more quickly to add to their limited CUV lineup, instead of wasting precious time and resources on a dog like the Aslan sedan (should have started development on a Genesis based CUV as soon as the 2G Genesis was finished).

In this way, Hyundai is much like Cadillac - overly reliant/focused on sedan sales when the tide had been turning to CUVs (anyone with half a brain saw this coming years ago).

Hyundai's management has also been overly focused on the BRIC countries - they (China and India) already got a subcompact CUV while the US/Europe will have to wait a couple more years.

The correct expression is screwed the pooch, not shot the pooch. But I digress.

I'd prefer a 5-seater luxo Genesis SUV, based on the planned next generation Santa Fe Sport, but available sooner.

 

[RN2X]

If they give us a genesis level SUV I will definitely trade in my 15 Sonata.

 

[Sal Collaziano]

I like the exterior of the Kia Sorento but the interior is REALLY boring...

Yes, Hyundai is taking a page from Cadillac's book with the Crossover SUV segment. Both brands need to get on the ball there...

The new Sorento is even nicer/more luxurious than the Santa Fe (looks better, too).

The higher-ups at Hyundai have really shot the pooch when it has come to long-term planning.

Should have started on another NA plant a couple of years ago and should have moved more quickly to add to their limited CUV lineup, instead of wasting precious time and resources on a dog like the Aslan sedan (should have started development on a Genesis based CUV as soon as the 2G Genesis was finished).

In this way, Hyundai is much like Cadillac - overly reliant/focused on sedan sales when the tide had been turning to CUVs (anyone with half a brain saw this coming years ago).

Hyundai's management has also been overly focused on the BRIC countries - they (China and India) already got a subcompact CUV while the US/Europe will have to wait a couple more years.

 

[YEH]

The correct expression is screwed the pooch, not shot the pooch. But I digress.

I'd prefer a 5-seater luxo Genesis SUV, based on the planned next generation Santa Fe Sport, but available sooner.

Brain fart on my end w/ the idioms. lol

Don't quite get what you are saying, since the next gen SF Sport while getting a bit nicer would not be RWD (and hence not Genesis-based) and still not nearly as luxurious.

I like the exterior of the Kia Sorento but the interior is REALLY boring...

Interesting since I quite like the new dash design - much better than the previous Sorento and more interesting than either Genesis sedans or the Equus.

Like the clean lines and the more linear design (not so much center-stack focused).

Like the dash/interior of the new Optima better as well. Too bad the sheetmetal is a step backwards.

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[PMCErnie]

I advocate offering a Genesis SUV that would go head-to-head with the Lexus RX 350, which is the top seller in that market. I do not think that it needs to be Genesis sedan-based, however. The Lexus does just fine with FWD and AWD and so does my Santa Fe Sport. Of course, a new Genesis SUV would need to offer more than 6 forward gears, as well as improved mpg.

 

[Sal Collaziano]

I replaced your images because they were stretching the rest of the discussion way out to the right...

Yeah, I still don't care for the Sorento interior but I really do like the new Optima interior. And I just don't see enough changed in the exterior to change the way I feel out that. I think only serious Kia enthusiasts are going to notice much of a difference on the outside of the car.

The Santa Fe interior isn't anything special either - but I do find it less boring than the Sorento's...

 

[Sal Collaziano]

I advocate offering a Genesis SUV that would go head-to-head with the Lexus RX 350, which is the top seller in that market. I do not think that it needs to be Genesis sedan-based, however. The Lexus does just fine with FWD and AWD and so does my Santa Fe Sport. Of course, a new Genesis SUV would need to offer more than 6 forward gears, as well as improved mpg.

I have a feeling when he said, "Genesis-based", he meant - basically - loosely based off the Genesis - meaning features, design, etcetera. I don't think he meant 'platform'. However, I can't be sure of that.

I agree that a FWD Genesis CUV would be fine and compete well with the Lexus RX - the leader of the segment (also first in the segment). However, I would not be opposed to an AWD CUV either - which could compete with CUVs like the BMW X5...

 

[YEH]

^ I'm taking it to mean the opposite.

Not much differentiating the Sorento SX-L from the likes of the Acura MDX (yeah, some nicer interior materials such a wood trim) - so with the next gen Santa Fe going more upscale to match the competition, not really much room to differentiate if using the same FWD-based platform.

The RX has been a best-seller b/c it is basically a midsize, lux CUV being sold at the entry level price segment.

Basically this is why the Japanese and to an extent, Audi, have been able to do so well in the lux CUV market (Audi does much better at lux CUVs than lux sedans as there is less stigma w/ a FWD-based sedan, even for a German make).

But while there are numerous advantages for going w/ a FWD-based platform (primarily cost and interior space packaging), think Hyundai should go w/ a RWD Genesis based CUV.

In doing so, probably won't have a much of a pricing advantage over say, the MDX, but while many CUV shoppers don't care about FWD vs. RWD, some do, esp. those who don't want or need AWD (buyers in the sunbelt).

So basically giving up some sales for a higher price-point (and gaining further efficiencies of scale for the Genesis platform).

 

[Sal Collaziano]

I'd LIKE to see a RWD/AWD "Genesis" CUV/SUV but I don't expect it. I'm expecting a FWD CUV.

 

[RickyBobby]

All the growth is in SUVs. Hyundai has a better chance succeeding with a 50k SUV than a sedan. SUVs just sell!

 

[Sal Collaziano]

All the growth is in SUVs. Hyundai has a better chance succeeding with a 50k SUV than a sedan. SUVs just sell!

Yes, they do. Especially the small and midsize SUVs/CUVs.

 

[RN2X]

Give me a Genesis quality/tech level suv and I will trade in my 2015 Sonata in a heartbeat. 8 passenger with smart cruise control and lane keep assist at the pricepoint we see with other hyundias and I am right there.

 

[shovelrider78]

Greetings, I owned the 2009 Kia Borrego (RWD)with the 4.6 Tau engine. It had all the bells & whistles. I would still have it, but got a great deal on trade for my 2012 5.0. If Hyundai makes a Genesis SUV with rear wheel drive and the 5.0 or the new twin-turbo V6. I may again make the trade. It must have at least 400hp!

 

[Sal Collaziano]

Greetings, I owned the 2009 Kia Borrego (RWD)with the 4.6 Tau engine. It had all the bells & whistles. I would still have it, but got a great deal on trade for my 2012 5.0. If Hyundai makes a Genesis SUV with rear wheel drive and the 5.0 or the new twin-turbo V6. I may again make the trade. It must have at least 400hp!

Yes, I'd like to see a Genesis SUV with 400+ horsepower as an option. I'm pretty confident we'll at least see the twin turbo V6 with horsepower in the upper 300 range.