Genesis brand could cost Hyundai half-billion dollars

omarrana submitted on 05/08/2008 Official Bell & Ross Timestamp: 3:35 PM
from: www.egmcartech.com

Tags: Hyundai

Hyundai

Genesis brand could cost Hyundai half-billion dollars

Ever since Hyundai started teasing us with the Hyundai Genesis sedan, it was thought that Hyundai would pull a Toyota/Lexus move and offer the Genesis nameplate as its luxury division. Hyundai even admitted at the 2008 Detroit Auto Show, during the U.S. premiere of the Genesis sedan, that it was testing the market by unveiling two Genesis Sedans, one with the Hyundai logo and one without.

With the sedan hitting the market later this summer followed by the Genesis Coupe later next year, the Genesis could be launched as a Lexus like brand. According to MotorTrend, the decision to make the move on a premium brand could be three to fours years away.

According to Dong-Jin Kim, Hyundai’s vice chairman... Read Article

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answer - 5/8/2008 3:54:33 PM

+8 Boost

I think the Genesis line would be nice.

I was dissapointed when Mazda dropped their lux line plans in the mid 90's.

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Batman219 - 5/8/2008 4:43:10 PM

-12 Boost

I think the Genesis line should replace the Hyundai nameplate not add to the Hyundai family. The reputation of the Hyundai name is too damaged for a recovery. Replacement is a better option.

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JRobUSC - 5/8/2008 6:40:32 PM

+6 Boost

you do realize how fast Hyundai is growing, right? Within the next 10-15 years Hyundai is expected to grow to Toyota-like proportions, and most experts think they're the brand most likely to eventually challenge Toyota as the worlds largest car manufacturer. Somehow I don't see them dropping the name.

pushrod27 - 5/8/2008 8:36:41 PM

-6 Boost

i think if hyundai wants to start charging toyota prices for its cars, then they should drop the name. to be honest, i'm very perplexed that hyundai sells a lot of cars. i would never buy or drive one in a millions years, i find the very idea disgusting.

right now, a lot of people are just looking for a cheap car. a Hyundai will do for them. But if Hyundai wants to expand and move beyond $25k territory for good, then they will need another name.

where i'm from, 'Hyundai' translates to 'i had no other choice.' if you are a person who CHOOSES to drive a Hyundai, please explain it to me, because i'm lost. Choosing to buy a Hyundai (if you can afford something else) makes about as much sense as a penile reduction surgery.

Batman219 - 5/8/2008 9:28:52 PM

-5 Boost

Hyundai can grow all it wants, it'll still be a Hyundai. You can dress up a turd to make it look fancy and prestigious but its still a turd. That's my point.

Reputation is larger than the entity. Hyundai dropped the ball on reputation from the beginning and IMO its too bruised to bring back. Rather than start a new line they should just rename the auto division Genesis.

JRobUSC - 5/8/2008 11:57:52 PM

+5 Boost

pushrod and batman, Hyundai certainly took their lumps early on, and their reputation was deserved. Fifteen years ago. Of course fifteen years later a lot has changed. They're no longer the unreliable crap boxes they used to be, and frankly most people buying Hyundai's today were either too young to drive back then or young enough now to not even know that reputation previously existed. They do have a couple of big things going for them. For example,

a) they're less expensive than Honda's, Toyota's, and Nissan's, and
b) they have a very long warranty.

That's going to appeal to some people. And based on sales figures, it's appealing to more and more people every year. You might never drive one. I'm not interested in owning one either. But it's probably a good thing you don't work for an automotive manufacturer, because considering the figures and evidence staring you in the face your blanket dismissal of what is probably going to be the next uber player in the car business is an astonishing lack of foresight. Did you ever work for Ford?

KZ258 - 5/8/2008 7:03:36 PM

+2 Boost

i didnt even know hyundai had half a bill to throw around like that but if its priced right with the right gas mileage, i dont see any losses here

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AMGC55 - 5/8/2008 9:00:54 PM

+3 Boost

they can afford it... it would be good to add a nicer image to there company

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S4cabriofoxone - 5/9/2008 12:12:58 AMView My AgentSpace

-1 Boost

This is absolutely necessary, because the Hyundai name was forever tainted in the 1990s by POSs like the EL and first-gen Accent.

Hope it does some good for their luxury sales.

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lexusis350 - 5/9/2008 12:26:18 AM

-1 Boost

I'm living proof that Hyundai tainted their name. I will never buy anything that has anything to do with Hyundai.

M35MT - 5/9/2008 12:58:58 PMView My AgentSpace

+2 Boost

That's strange coming from you S4, Audi's name is just as Tainted in the states with their 80's brake pedal scandal and the infamous late 90's A4 control arm/turbo problems

lexusis350 - 5/9/2008 12:24:30 AM

-2 Boost

Half a billion? They should do it! (then maybe they'd go into debt and never make it out again having to declare bankruptcy and therefore ceasing to exist.)

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smokefreak2003 - 5/9/2008 12:30:00 AM

+1 Boost

Thats not going to happen Lexusis. Hyundai is the world's 5th largest automaker for 1. For 2, Hyundai makes trucks and buses for other markets. Also, Hyundai makes ships, and trailers for trucks as well as construction equipment. I see a lot of construciton comapnies buying Hyundai cranes lately. In addition, Hyundai makes military hardware for most of the Asian Militaries. Id rather have a car that came from a company who historically made tanks as opposed to one from a bike maker.

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DexDiamonds - 5/9/2008 8:46:44 AM

-1 Boost

Is that a shot at Honda?

montyz81 - 5/9/2008 11:01:53 AM

-2 Boost

You should check your stats. Your saying that Hyundai is 5th. According to all the lists I have found, this is what the top Auto Manufactures look like:

1 GM
2 Toyota
3 FORD
4 VOLKSWAGEN
5 Honda
6 PSA
7 Nissan
8 Chrysler
9 RENAULT
10 Hyundai

lexusis350 - 5/10/2008 1:10:56 AM

+1 Boost

Honda makes more than motorcycles. They make 4Wheelers, personal watercraft, planes, lawnmowers, boat engines, generators, and much much more. I wouldn't trust something of no value with Hyundai. I can trust Honda. They've proven themself time and time again.

smokefreak2003 - 5/9/2008 12:36:51 AM

+3 Boost

By the way speaking about tanks. I crashed a little 1998 Hyundai Accent into a 4500 pound Buick. Guess what happend? A small dent and a broken light. I popped the dent out with my hand and bought a new light. When I got my first Hyundai, I felt the same as you guys. However, at the time I did not have a choice. After driving My Accent for 230,000 miles before trading it in to get a New Accent, Iam a believer in Hyundai. Also, unlike most other of the Asian or even Americna car makers these days, their engine are quite easy and simple to work one. They are like the old 1980s Corollas I used to own back before the main competitor, (Toyota) put so much shit on their motors that you need a computer engineering degree to work on them.

By the Way, the Hyundai Accent has not had a recall in 6 years. Can the same be said about Corrollas? Check the National Highway traffic Safety Website, if you think Iam bullshitting you.

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adamsaf723 - 5/9/2008 8:30:36 AM

+5 Boost

I honestly think they have a little more than 3-4 years, probably 7-8 years. They need to establish themselves as a serious automotive brand. They still have value brand written all over them, which is fine, but you have to prove yourself in the mainstream market before you are ready to enter the most competitive market out there.

It's going to take a while for a CEO look at a Hyundai when questioning whether to get the Mercedes or the Lexus. People are willing to spend a lot for a logo, I'm just not sure people are ready for Hyundai to be that logo.

They've come a long way, but I still think that they have more to go. The car looks great, but even still.

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BMW995 - 5/9/2008 8:45:38 AM

+2 Boost

From all recent reports, the Genesis sedan is a fine driving auto. As much as some people want to knock Hyundai, the Genesis will be a big hit. Value with quality will win out in the end, and the Genesis has both.

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evilm - 5/9/2008 10:16:25 AM

-1 Boost

I bet it would be better than Lexus

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2001W210 - 5/9/2008 11:41:07 AM

+1 Boost

I am sure Hyundai could afford it, but the main question is will the new brand succeed? I haven't bought rebadged Toyota/Honda/Nissan till this day, why in a world am I going to buy a rebadged Hyundai? Unlike the starting days of Toyota, these are the days with unlimited resources over the internet. It will be impossible hide their cheap but reliable image like Toyota did with all that commercials back in early 90s. Rebadged Toyota fans should consider yourselves lucky. If we had enough resources like today, it wouldn't have got so popular. I know many people would agree, if Toyota would've started with that big L on their boring grill today, with unlimited amount of resources, it would've never kicked off.

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smokefreak2003 - 5/9/2008 2:26:40 PM

+1 Boost

Actually Dex, I like Honda, I always have. Toyota is the overrated brand. Iam just a little dissappointed on how much their vehicles cost, how hard it is for people to finance them, and if you get financed the crazy interest you have to pay; in the low 20s for a young guy like me. Especially when Top Gear has been testing their cars of late. Jeremy Clarskson stated something in the order of about the 2007 Honda Civic as opposed to the 2005 Honda Civic were "If youre looking for a Honda Civic, the last Generation of Cars were better made than the newest Generation of Cars. It also doesnt help that they have that funky styling too."

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smokefreak2003 - 5/9/2008 2:32:46 PM

+3 Boost

I got my Accent from from a Dealer who sells Accents and Fits side by side. The Accent=14% interest over 5 years, the Fit=22% interest over 6 years. Thats a difference of close to $100 a month. The Fit is great car, but its not that great for me to make such a financial sacrifice.

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