Hyundai's Biggest Challenge

[musher51]

I finally had a moment to read the Motor Trend review, but somewhere 'round page 3 I got distracted by the posted comments.

WOW! Overwhelmingly negative!

Two clear themes prevailed. The first is that the Genesis design is a too-derivative amalgam of the German and Japanese cars it's going after. To many posters, the fact that the design isn't completely new and unique (even overtly risky) is a deal-breaker. Well, I'll concede that Genesis made a deliberate decision to stay conservative and focus on maximizing value (an HMC VP said as much in the video interview), but it's just not that big a deal to me. As long as I find a car pleasant to look at, my aesthetic requirements typically aren't that hard to fulfill. I think there are a LOT of nice looking cars out there.

The other theme is (perhaps not surprisingly) disdain for the Hyundai brand. This entry is classic:

"WOW. You truly did smoke crack before you typed your response didnt you? Saying this new Hyundai is different is like saying Paris Hilton is the smartest female on this planet. Did you not read all the responses above about how generic looking this car is? Theres at least 20!

Also, heres something no one has mentioned. Say you meet some hot girl at a bar or something, what sounds better?

Yeah I drive a BMW, Infiniti, Cadillac, Mercedes? OR...

Yeah I drive a hyundai.

I rest my case."

Yikes. All I can say is, I'm glad I'm not wired that way. True, my last two cars were BMWs, but that's largely because I wanted to experience their vaunted engineering and manufacturing prowess. I lead product development teams for a different high-tech industry, and I respect good technology that's well applied.

But the car I had before that was a '92 Taurus -- and I might still be driving it were it not for the fact that no transmission could last 20K miles. My point is that I'm by no means a classic "car guy".

For me, I feel better about this purchase with every passing day. As I spend more time with the car, I continue to be impressed by the sheer value. I paid $36500 for a V6 Tech Gen in '08 versus $55K for a sport pkg 530 in '02. Not even compensating for future value impact on the '02 purchase, that's about a $20K difference. I really enjoyed all of the 102K miles I put on the Bimmer (much of it at ~90 MPH on mellow interstates late at night) -- and I'll even admit to choking up a bit when I saw it today in the dealer's lot -- but I'm VERY happy with the Genesis nonetheless. Like everyone, I've noted a few quirks and oversights, but no regrets for sure.

So, back to the thread title...it seems to me that Hyundai's biggest remaining challenge for Genesis to be successful is not technical (anymore), but rather emotional/perceptual. And from the tone of the comments in the MT article, the challenge in front of HMC to overcome all that is not insignificant.

 

[Simonwpb]

Well said Musher. The reason Genesis is priced so low is for this very reason. Hyundai has significant negative perceptions in the marketplace that they need to overcome with many consumers.
The one thing I have not heard on this forum is "I used to think Hyundai was a piece of cr*p but then I looked at a Genesis..."
We seem to be a more enlightened bunch who either already had a favorable impression of the brand or took a look at the car with an open mind or no preconceptions.

 

[Sal Collaziano]

Great post, Musher! You're right - Hyundai must overcome the perception that Hyundai makes cheap vehicles. Prices have been going up on Hyundai models - and people haven't stopped buying them. At one point or another, someone is going to notice that Hyundai doesn't make cheap vehicles anymore. Neither in the sense of quality - or price.

Once the Chinese start selling cars here, people are going to be forced into the reality that Hyundai isn't the bottom of the barrel.

Like Simon mentioned, most of us Genesis enthusiasts are better educated than the average public citizen. At least it certainly seems that way. I hope people catch on soon. It's getting very "old" hearing people constantly repeat the kind of negative comments Musher quoted for us above. Unfortunately, it's probably not going to get better sooner than later. Even Lexus still has the same stigma to many people...

 

[Michael_S]

In general, internet discussion boards often devolve into a playground for obnoxious people.

Places like this where (so far) the discussion has been civil are not nearly as common as I would like.

You can bet dozens or hundreds of people with a more intelligent opinion of Hyundai - even a negative one - didn't bother to toss their comments in among the crass insults.

 

[Jerrad]

Also, heres something no one has mentioned. Say you meet some hot girl at a bar or something, what sounds better?

Yeah I drive a BMW, Infiniti, Cadillac, Mercedes? OR...

Yeah I drive a hyundai.

I rest my case."

How about saying it like this.

Yeah I drive a BMW, Infiniti, Cadillac, Mercedes? OR...

Yeah I drive a Genesis.

 

[Samifumi]

I have no reservations about buying the Genesis based on the perceptions of others, but I do recognize that it will be an issue for Hyundai initially. At some point in the next few years, the doldrums in the American economy will force Americans to change their notions of needs vs. excesses and value vs. vanity. BMW and Mercedes realize this, and they have started to move their substantial marketing budgets and divert stock to the Far East countries, most particularly Russia. Also, for perceptions to change gradually, there is a part you as the first Genesis owners and enthusiasts must play. You must be able to extol the virtues of the Genesis relative to the other competitors and persuasively relay your reasons for choosing the Genesis. Lexus spread by word of mouth back in the early 90s, and if Hyundai wants to replicate the Lexus ascent, they will need the same word-of-mouth advertising.

I still love BMWs, and will probably continue to purchase from them, but as an alternative to Mercedes, Lexus, and Infiniti, I chose the Hyundai Genesis.