Hyundai is not shy about who it has set its sights on - Lexus. Hyundai has built a compelling argument to competing Lexus products, in fact when compared with the cars whose dimensions the newest Hyundai most closely match, it is easy to see how big Hyundai's aspirations really are.
Toyota rocked the luxury establishment in 1989 with the introduction of Lexus. Year after year, model after model Lexus continually moved the bar higher forcing Mercedes and BMW back to the drawing boards in an effort to stay ahead of the Japanese maker.
Hyundai has made a pretty bold statement with the introduction of the full size Genesis sedan. Lexus is clearly the target, and it is obvious that Hyundai has donhomework. The brand new V8, a 4.6 liter 368hp power plant that puts out some serious power. Is it coincidence that Lexus puts a 4.6 liter V8 in the GS460 and LS460? The Lexus engine puts out 380hp to the 368hp in the Hyundai, but to read the spec sheet you can certainly be forgiven for thinking a page or two from the Lexus play book has fallen into the hands of Hyundai engineers.
What is amazing about the Genesis is the fact that Lexus makes no car that competes with the Genesis at the price point the Hyundai is coming to market at. It is easy to surpass the $40k mark with the ES350, but that oh so critical V8 option isn't even available in the ES, a step up to the GS, specifically the GS460 is necessary to get similar power output, but the GS is $10k more than the big Hyundai.
Should Lexus be worried?
Can Hyundai become a player in the luxury segment?
Don't laugh at the questions, remember Lexus was a nobody when it came to market in 1989, and yet today if you hear the brand name Lexus, you know a luxury car is being discussed. Could Genesis be the springboard for Hyundai to enter a new arena of the market, for that matter could Genesis become a sub-brand of Hyundai to launch a new division of cars targeted towards the upper end of the market? The idea is not that far fetched, I remind you the coupe Hyundai is coming out with also is called Genesis as well, a fact not missed by AutoSpies.com.
An item worth mentioning, and Agent 001 really brought this to the forefront is the fact that although most of us have not seen in person or driven the Genesis, Agent 001 has and he notes that the Genesis is not up to Lexus standards, yet. Could part of the article that C&D published be based on generating ad dollars? Agent 001 said to me, "...I've been in that car and there is NO way it is on par with a Lexus."
So, should Lexus be worried?