Hyundai rules out separate premium brand

[JustMe]

The number I have heard is $1 billion to launch a new brand. I have heard all the moaning about how these cars are now overpriced, how about amortizing that billion over Genesis and Equus sales over even 5 years and see who moans then. At probably 200,000 units over that 5 years you are looking at a $5000 front load into Genesis cost and that is before it is grossed up for profit. Is anyone prepared for a $40k base V6 and a $58k 4.6? As far as Canada goes, buy your cars here and import them back to home and pay your taxes when you register it. I don't think you will be saving much. It is probably a wise decision to leave it all under one tent and spend some resources in dealer customer service training.

Hyundai dealers will NOT work on a USA purchased car. That's what I was told by the dealer. Hyundai USA dealers will not sell a brand new car to a Canadian. Though I can buy any USA pre-owned. But still no service in Canada. Right now I'm sitting still and trying to decide what to do next.

P.S. The Canadian dollar is worth more than the American dollar right now. Moreover, I love America and Americans

 

[homeofstone]

Rick Case Hyundai in Atlanta GA is great and as is Five Star Hyundai in Macon, GA . To bad the owners of dealerships in Canada do not provide excellent customer service. I blame owners and managers for not provideing leadership, and training to employees. The owner must impress upon all his/her employees the importance of customer satisfaction which leads to repeat business, which then leads to job security and raises.

 

[JustMe]

Yep, I fully agree with you. Americans are more business-oriented and I have no doubt that it is much easier to find a responsible and good Hyundai dealer. Unfortunately it is not the case where I live.

Even worse, another brand of car, which I shall not mention, has two dealerships in my town and both dealers are owned by the same guy. So much for competition and capitalism. Needless to say you are getting the shaft by going to either one.

P.S. I've been pondering emigrating to America... (seriously). Anyone wishes to sponsor me? LOL!!!!

 

[GLGar]

My dealer in Joplin also sells MB's. Uses the same show room, sales staff, customer lounge, etc. Nice new facility too. Haven't visited the service dept yet and hope that doesn't change. Seems like alot of GM dealers in smaller markets sell Chevrolets and Cadillacs side by side along with Buicks. A separate fancy car store with it's added costs is of no value to me when I start researching my next new vehicle.

 

[ilovemygenesis]

http://www.autoweek.com/article/20110401/CARNEWS/110409991

So, it appears that launching a premium brand with the launch of the next gen Genesis and Equus sedans is dead in the water.

Hyundai, can, of course, change their minds, down the road, but for the time being, it seems like it will be a non-issue.

Considering the economic climate, the cost involved in launching a separate brand/dealer network, Hyundai still needing to revamp its current dealer network, the better use of corporate funds to compete in the fast growing BRIC auto markets, etc. - I'd say it's the right decision for right now.

However, I do think Hyundai should place the Genesis, Equus and whatever forthcoming luxury models they have in development in a sub-brand, such as a "HyundaiGenesis" brand (or "Genesis by Hyundai"), but then again, that can just overcomplicate things.

http://www.autoweek.com/article/20110401/CARNEWS/110409991

As much as I would like to see them create the new brand I understand the reason for not doing it at this time. They have gone through a lot of changes in the past few years trying to rebuild their image and creating a new brand would be too much too soon. They are wise is holding off, building up their current dealerships which we all agree they need to work on, building up capital, infrastructure and market share to make that leap in the luxury market. If they expand too fast without a stable foundation all their work will go for nothing as they wouldn't be able to support the expansion and it would turn to a disaster.