Hyundai spinning off Genesis into Luxury brand

[Aquineas]

I know this is a dupe, but this is big enough news not to be buried in another thread

 

[ksoze]

...The maker of the Sonata midsize sedan and Santa Fe crossover sport utility vehicle (SUV) plans to launch Genesis as a separate global brand, though the line-up is likely to be sold through the existing Hyundai-brand distribution channel – at least for now, said one of the knowledgeable individuals.

May not see much difference for a while.

Interestingly, the linked Reuters article stated, "...Toyota Motor Corp spent around $5 billion to build its Lexus luxury marque from scratch, and took a decade to break even". Yikes.

 

[Mark_888]

May not see much difference for a while.

Interestingly, the linked Reuters article stated, "...Toyota Motor Corp spent around $5 billion to build its Lexus luxury marque from scratch, and took a decade to break even". Yikes.

Here is a quote from the article:

'Physically, the cars will be sold at Hyundai dealerships, not at standalone stores—at least not yet."

So this is not really a big change at all. The Genesis is already sold as separate brand in Korea. It will be sold as separate brand in the US, but sold by existing Hyundai Dealers, so it will not need a huge investment like Toyota did for Lexus with a completely separate dealership network.

 

[NSXNEXT]

What a waste. The point of developing a separate brand is to have two independent user experiences. If I walk into the same dealership that sells the Accent and Sonata how is it a different brand? Same crappy coffee and food stained lounge seating.

 

[Monolith2001]

What a waste. The point of developing a separate brand is to have two independent user experiences. If I walk into the same dealership that sells the Accent and Sonata how is it a different brand? Same crappy coffee and food stained lounge seating.

Agreed but I'd still rather save $5-10K on the car and just deal with the fact that I am not treated like a VIP for the hour or two every three months I go there.

 

[goochylittlepig]

Agreed but I'd still rather save $5-10K on the car and just deal with the fact that I am not treated like a VIP for the hour or two every three months I go there.

This.

What kind of lives do you people have that having to sit with other human beings for an hour every few months is a big deal? My wife drives an Elantra, it's not like she's homeless and I'm royalty because my car costs more than hers.

 

[Sal Collaziano]

If they get it right then this change will allow Genesis owners to have a more luxurious experience at dealerships. As it stands a few dealerships already do this but not enough. I imagine not all Hyundai dealerships will be allowed to sell Genesis automobiles. They'll need a smaller dealer network considering they'll be selling less vehicles. When all is said and done it's not bad for a brand to sell less products for more money. Having fewer customers to cater to while earning the same revenue will be good later on down the road when Genesis stores start popping up.

 

[Genesiswannabee]

So I guess when people ask me what my new 2015 3.8 AWD black with Ivory interior Genesis is I should tell them it is a Genesis Genesis?

 

[Mark_888]

So I guess when people ask me what my new 2015 3.8 AWD black with Ivory interior Genesis is I should tell them it is a Genesis Genesis?

The 2015 (and I presume 2016) will always technically be a Hyundai Genesis. The new branding probably does not take effect until 2017 in the USA.

 

[Aquineas]

Unfortunately, the Genesis Line will be getting bland G-Number names.. To the Hyundai executives shadowing this site, I can't help but wonder how much better the TLX would be selling if it were called the Acura Legend.

They also mention 6 new models. I'm going to take a guess the model lineup will be:

• 3rd generation Genesis
• Equus
• 3-series competitor
• Something upmarket of the Equus
• LX Competitor
• CUV or re-badged Aslan

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[YEH]

The Genesis will become the G80 (really?) and the new Equus the G90 for world markets (but in Korea will be the EQ900).

Bigger news is that a 3rd sedan (G70) will launch a year after the EQ900/G90 - presumably the long-rumored compact RWD sedan rather than something along the lines of a fluffed up FWD sedan like the Aslan - for a total of 6 RWD models including a midsize crossover and an SUV (interesting).

Figure the 6th is the Genesis coupe replacement (note - which will be an entirely different model; another possibility is that the Genesis coupe replacement remains a reasonably affordable RWD coupe under the Hyundai nameplate with a higher end RWD coupe for the Genesis brand, but I doubt that's the case since the Genesis coupe replacement is supposed to get the 3.3TT V6 and that is much engine for a non-lux coupe that isn't a pony car or a Vette).

Would be smart for Hyundai to have a compact CUV in the planning stage - that would make for a good basic luxury lineup.

http://www.autonews.com/article/201...-brand-to-target-savvy-affluent-progressives#

Also...

Hyundai spokeswoman Angela Hwang said the Genesis brand would be sold through its own separate sales channel in the mid- to long-term. But that in the near term, it would have to piggyback on Hyundai’s existing showrooms.

and

The Hyundai line will lose the Equus and Genesis, and there are no immediate plans to replace those nameplates with other entries in their segments, Hwang said. The current Genesis Coupe, a performance-oriented rear-wheel-drive model, will not be carried into the Genesis subbrand.

and

Genesis will have its own r&d division and design studio, the latter of which will be chaired by Luc Donckerwolke, a former Volkswagen Group designer.

Evidently, with the hiring of Luc Donckerwolke and the former head of engineering at BMW's M division, Albert Biermann, this has been in the plannign stages for some time.

Apparently, the boys over at Hyundai USA have been arguing against this - more so the timeline than anything else and I agree with them.

While I have been long stating that this (sub-brand) is something that Hyundai should do - think the timing is a bit ambitious and that they would be better served to wait until the launch of the 3G Genesis (when they have more extended lineup and have more time to set everything into place).

What a waste. The point of developing a separate brand is to have two independent user experiences. If I walk into the same dealership that sells the Accent and Sonata how is it a different brand? Same crappy coffee and food stained lounge seating.

Think that Hyundai will require the Hyundai dealerships that will be getting a Genesis franchise to at least build-out a separate showroom area and maybe a separate customer lounge (as some Hyundai dealerships have already done).

(Edit: saw that Sal has been on the case already.)

 

[Aquineas]

Well Hyundai, please don't lose track of the fundamentals. Despite the temptation, never skimp on product:

• Engineering Quality
• Manufacturing Quality
• Design.

Keep executing on those fronts, and your brand can succeed. Fail even once on either of the first two, and it will take at least a decade to recover. Fail on #3, and you'll have a ton of cars on lots that you can't sell.

And for goodness sakes, whomever you outsource your sunroof assemblies to, give them a kick in the ass.

 

[MikeyTG]

Maybe now we won't have to re-badge the trunk...

 

[craigt]

I can't help but wonder how much better the TLX would be selling if it were called the Acura Legend.

It would be odd to have the TLX with the Legend name. The Legend was the highest level Acura*, which is now known as the RL. The TLX, a descendant of the TL (with a sprinkle of the TSX), was formerly known as the Vigor.

But your point is well taken.

*Not including the NSX

 

[goochylittlepig]

Maybe now we won't have to re-badge the trunk...

yeah i was wondering about that. i know some dealerships used to do it automatically, and then some have tried to stop doing it at all. i'm hoping to get mine rebadged when i get it in a few weeks, and i feel like this gives some added fuel to my argument for doing so.

 

[Sal Collaziano]

You certainly wont have to rebadge the trunk on the new Genesis models but you'll need to do so on the "Hyundai Genesis" through next year. You can buy a winged badge here and get a couple of free "supporter" months in the process.

 

[Sal Collaziano]

I think Hyundai actually planned on getting this new brand going with the second generation Genesis. The car is really THAT good. It deserves to be placed on a pedestal. Or perhaps they met their target date and intended on starting the Genesis brand with America's second generation Equus/G90. Imagine how good the Genesis G90 is going to be. I think the brand will do well and I'm very anxious to see what the future holds.

The upcoming Buick LaCrosse is going to be a very impressive upscale sedan and I think the G80/Genesis Sedan is going to need a little something extra to keep from losing too many sales to it.

 

[Stew24]

So I guess when people ask me what my new 2015 3.8 AWD black with Ivory interior Genesis is I should tell them it is a Genesis Genesis?

No, ... you should tel them its a 2015 Genesis 3.8 Sedan! ... Afterall, ... its says so right one the trunk, Genesis on the left, 3.8 AWD on the right!

 

[Stew24]

Unfortunately, the Genesis Line will be getting bland G-Number names.. To the Hyundai executives shadowing this site, I can't help but wonder how much better the TLX would be selling if it were called the Acura Legend.

Well, I happen to remember very well when the Acura and Lexus brands arrived, Acura arrived first and had all of the Honda winds behind it's sail. The Legend was beautiful! Lexus showed up a year later, but used the Alpha numerical naming convention as did Mercedes, BMW, Audi, etc. The Lexus brand caught on and surpassed Acura, even though the LS400 didn't look nearly as good as the Legend! Everybody knows both Honda and Toyota were both tops in engineering and reliability, ...so why did the less attractive LS400 go around the more beautiful Legend? ... It's because they styled it to look like a Benz, and used a trick to stamp the Lexus brand in your mind!

It's because they used Alpha numericals! By using Alpha numerals instead of a name, it forces you to place attention on the "Brand" as opposed to the "Model". While the "Legend" model was hot, ... the "Lexus" brand, became hot! That circled "L" emblem and the brand "Lexus" became chic! People knew the Legend model, but no so much the Acura brand. Conversely, EVERBODY knew the "Lexus" brand, but could care less about the Ls400, Sc300/400, etc model names. "Hey, you hear Bob just bought a new Lexus!!?" ... So, there is very good reason to use the numerical model names when you are trying to get traction for a new "brand", and I'm glad Hyundai/Genesis is not making the mistake out the box that Honda/Acura made. Nissan/Infiniti avoided Honda's mistake as well .

 

[bnajack]

Unfortunately, the Genesis Line will be getting bland G-Number names.. To the Hyundai executives shadowing this site, I can't help but wonder how much better the TLX would be selling if it were called the Acura Legend.

They also mention 6 new models. I'm going to take a guess the model lineup will be:

• 3rd generation Genesis
• Equus
• 3-series competitor
• Something upmarket of the Equus
• LX Competitor
• CUV or re-badged Aslan

My only change from your picks would be to substitute the Genesis Coupe for something upmarket of the Equus.