Hyundai’s Exhibit A is the Genesis, a luxury sedan that was named North American car of the year at the Detroit auto show in January. Part of the appeal of the Genesis, in addition to a price tag that is thousands less than that of its chief rivals, may be that hardly anyone associates Hyundai with the word “luxury.”
Its lowest-priced model, the Accent, sells for just under $10,000 for the base package. The Genesis, its most expensive model, starts at $32,250 — by comparison, the Lexus ES 350 costs $34,470, and the
Cadillac CTS costs $36,560.
Several dealers have said that they are selling the Genesis to business owners who, after laying off some employees, want to project an image that they, too, are cutting back.
“The current economic climate really places an emphasis on people spending their money wisely,” said George Glassman, a Hyundai and Kia dealer in suburban Detroit who sold Oldsmobiles until G.M. eliminated that brand in 2004.
“They’re appealing to people’s desires to spend reasonably and to get great value for your dollar,” Mr. Glassman said. “Twenty years ago, Hyundai was a reasonable alternative to purchasing a used car. Now they are attracting consumers from all ages and all walks of life.”
Mr. Glassman’s recent customers include Joe Randazzo, who had considered the Chevrolet Malibu sedan because his son works for G.M. Despite the family connection and his past preference for Cadillacs, Mr. Randazzo chose to buy a Hyundai Sonata.
“It’s a very good ride, and I really enjoy driving it,” said Mr. Randazzo, 79, who is retired from running a
ceramic tile business. “I used to drive Cadillacs all the time. I don’t need to drive a heavy car like that anymore. No disrespect to G.M. or anybody, but my next car will be a Hyundai, too.”
Hyundai’s research indicates that 30 percent of consumers now consider the brand when shopping for a new vehicle, nearly triple the number who did about five years ago.
“They went from the perception of cheap to an excellent value,” said Mr. Merkle, the analyst. “I think that this will stick even after we come out of this environment, because people are becoming better acquainted with the product.”
