Should Hyundai Build A Luxury Crossover SUV?

[Sal Collaziano]

Remember the Hyundai Veracruz? It was a step above the Santa Fe. In fact, it was very similar to the Lexus RX350. But what about something one step above the Veracruz? Should Hyundai build a "Genesis" crossover sport utility vehicle? I, for one, would love to see a Genesis sub brand - and for that to happen - there'd need to be a solid crossover. What are your thoughts, opinions and criticisms on Hyundai playing in this arena?

 

[Philth]

No, not until they get their QC under control. Customer service is lacking as well.

 

[News Man]

What is QC?

 

[DubaiRich]

QC = Quality Control

 

[CC4.6]

No

 

[bmbutler]

Only if they FINALLY spin off Genesis and Equus into their own brand. Guys and I (female) were talking about the 2015 Genesis. My issue is the huge loss in value on Hyundai cars across the board. One guy said he liked the car, but when he buys a Mercedes or BMW, he knows they will hold their value versus the Genesis or Equus which drops like a huge anchor. I agreed with him that the name Hyundai is killing these two models no matter how nice and competitive they are. Hyundai's issues have been the same since when the made their debut in the 80's.

 

[PMCErnie]

A lux SUV is likely already on their menu. Just a matter of whether it's a '15, or a '16. More importantly, though, the parent company needs to ponder why they are pushing two standard brands (Kia and Hyundai) that are competing so directly with each other. I would suggest killing one and transforming it into the luxury division under a new name.

 

[Mark_888]

A lux SUV is likely already on their menu. Just a matter of whether it's a '15, or a '16. More importantly, though, the parent company needs to ponder why they are pushing two standard brands (Kia and Hyundai) that are competing so directly with each other. I would suggest killing one and transforming it into the luxury division under a new name.

Hyundai-Kia Motor Group (Korea) owns 100% of Hyundai Motors, but only owns 32.8% of Kia Motors (as of June 2012). Although they share technology, manufacturing, and some joint assembly plants, the marketing groups of Hyundai Motor and Kia Motor act independently.

Remember that Toyota and GM once shared an assembly plant, which produced basically the same car under two different brand names. But Toyota and GM are different companies. There are many other examples of such sharing.

 

[PMCErnie]

I'm pretty sure that Hyundai could remedy that ownership situation if they chose to.

 

[bmbutler]

It is about whether they want to. My lease is up soon. Been thinking whether to buy/lease new or just go with a used. Looking at various companies and who has the best deal. I also look at how each model holds up on price. Hyundai has sunk like a stone since their debut in the 1980's.

Only way Hyundai is going to remedy is to put both top vehicles in their own brand and lose the Hyundai name or ditch the name altogether. Many things plus their history is going to influence what I do next.

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[Mark_888]

I'm pretty sure that Hyundai could remedy that ownership situation if they chose to.

Originally, Hyundai bought a 51% interest in Kia in 1998, and that interest has been declining over the years since then to 32.8% (as of June 2012). Not sure why you consider Hyundai buying all of Kia as a "remedy"? A remedy to fix what problem?

 

[Mark_888]

It is about whether they want to. My lease is up soon. Been thinking whether to buy/lease new or just go with a used. Looking at various companies and who has the best deal. I also look at how each model holds up on price. Hyundai has sunk like a stone since their debut in the 1980's.

Only way Hyundai is going to remedy is to put both top vehicles in their own brand and lose the Hyundai name or ditch the name altogether. Many things plus their history is going to influence what I do next.

The strategy stated by Hyundai management is to use the Genesis and Equus to improve the Hyundai brand image in the US (which took a beating in the 1980's). They may be improving the Hyundai brand image with Genesis/Equus to some degree, but as you noted it is probably causing a hit on the reputation (and resale value) of the Genesis and Equus vehicles compared if they were not sold as a Hyundai (as they are not in Korea). But apparently Hyundai has decided to sell them as a Hyundai since they sell a lot more Sonata's, Elantra's, etc than they do Genesis or Equus. Globally, Hyundai itself (not counting Kia) sells over 3 million vehicles per year.

 

[News Man]

Thank you DubaiRich

 

[PMCErnie]

Originally, Hyundai bought a 51% interest in Kia in 1998, and that interest has been declining over the years since then to 32.8% (as of June 2012). Not sure why you consider Hyundai buying all of Kia as a "remedy"? A remedy to fix what problem?

This is what I said. Why twist it???

"the parent company needs to ponder why they are pushing two standard brands (Kia and Hyundai) that are competing so directly with each other."

 

[Mark_888]

This is what I said. Why twist it???

"the parent company needs to ponder why they are pushing two standard brands (Kia and Hyundai) that are competing so directly with each other."

The parent company owns a 32.8% minority interest in Kia Motors (as of June 2012) and therefore does not control everything that Kia does. When they purchased an interest in Kia back in 1998 they knew it would compete with their Hyundai branded vehicles. The investment in Kia was apparently for purposes of economy of scale in creating R&D and manufacturing shared solutions, and did not include any kind of collusion or coordination in the marketing arena between Hyundai and Kia.