Hyundai Evaluating the Creation of a Separate Genesis Brand to Compete with Lexus, May Build a BMW 3-Series Rival

If you were wondering what's next on the Hyundai and Kia Group's agenda of world domination, the answer is the addition of a third brand to the firm's portfolio to compete head on with Japan's Lexus and Infiniti, and possibly even Germany's finest, including BMW and Audi.

The luxury arm would most likely be called Genesis and include the South Korean firm's current rear-wheel drive offerings such as the Genesis Sedan and Coupe, plus the soon-to-be-launched onto the American market, Lexus LS-rivaling Equus.

The automaker, which saw its U.S. market share increase by an overly impressive 50 per cent in the past two years, would further enhance the range of the Genesis brand with a compact sports saloon in the likes of BMW's best-selling model, the 3-Series, and a crossover utility vehicle to compete with the Lexus RX 350.

The creation of the luxury arm is more than just a thought as John Krafcik, president of Hyundai Motor America, told The Wall Street Journal that the company has two branding scenarios under consideration.

The first and most likely to happen would be for Hyundai to launch the Genesis as a sub-brand and sell the cars in separate parts of its own showrooms. The other is to follow in the footsteps of Lexus and launch the brand into separate dealerships. One third option would be for the company to develop the aforementioned sedan and SUV models but keep the Hyundai branding for the time being.

"One of the keys to this plan is how well the Equus does. We don't need to make a decision for some time", Mr. Krafcik said on the branding question during an interview with journalists.

While Hyundai remains open to all options, Mr. Krafcik said that he is most concerned about launching a spin-off brand due to the costs related to the creation of a new network of dealers and that the company would need to make an additional $6,000 in revenue per each car sold by the outlets.

There appears to be a lot of enthusiasm among Hyundai dealers who are almost certain about the creation of the Genesis brand.

"The dealers are excited about the Equus, and it being the lynch pin for this Genesis brand," said Scott Fink, an owner of two Hyundai dealerships in Florida. "We feel like we can do what others have been unable to do. We think we can sell a luxury brand within the house of the mainstream brand."

READ MORE - Hyundai Evaluating the Creation of a Separate Genesis Brand to Compete with Lexus, May Build a BMW 3-Series Rival

Hyundai to Bring 100 Equus Sedans to U.S. Dealerships this Summer

It looks like New York Auto show goers must have been quite impressed with Hyundai's new Equus luxury sedan as the Korean firm is planning to ship 100 examples of its Mercedes-Benz S-Class rival to U.S. dealerships this summer. This could explain the recent sighting of an Equus with California distributor licenses plates that was spotted just outside Los Angeles. According to a report from USA Today, the idea behind Hyundai's decision is to gauge what American consumers think about the company's flagship model that was recently launched in Korea.

Hyundai believes that if it the Equus were to be successful in the States, it would hugely benefit the image of the company. "It would decisively shift public opinion in our favor. It would be the capstone," told the newspaper Oles Gadacz, a Hyundai spokesperson at the company's Research & Development complex outside Seoul.

The rear-wheel-drive Equus sits atop the Genesis in Hyundai's range and is offered with a 290HP 3.8-liter V6 and a 366HP 4.6-liter V8 while a long-wheel-base version with an even more powerful 5.0-liter V8 engine is also in the works.

The Genesis, which was Hyundai's first serious attempt in the luxury sedan segment, has sold just over 6,000 examples this year through April, according to figures released by Autodata. That's not a lot of cars if you consider that the Korean sedan is priced very competitively at $32k for the base V6 model to about $40k for fully packed V8 model. In comparison, the smaller BMW 3-Series Sedan starts from $33,600 for the entry-level 3.0-liter 328i while the rivaling 5-Series from $45,800 for the 528i.

Makes you wonder how many buyers in the U.S. would actually go well above $50k, maybe even up to the $75k range as the USA Today speculates, for a Hyundai-badged model.

In its home market, the Equus is priced from 63.7 million won (around US$51,200) for the entry level, V6-powered VS380 model and tops out at 105 million won (about US$85,000) for the V8-powered VS460 Prestige.

source: http://carscoop.blogspot.com

READ MORE - Hyundai to Bring 100 Equus Sedans to U.S. Dealerships this Summer

2010 Hyundai Equus Spotted with U.S. License Plates in Los Angeles

Hyundai may not have any official plans to import the new 2010 Equus luxury sedan in the States -at least for the time being, but an example of the Korean firm's Lexus LS-sized flagship model with California distributor licenses plates was spotted by a member of the 'Genesis Owner' community in the city of Diamond Bar, located 30 miles east of Los Angeles.

However, before you start the speculative rumors, the forum member claims that Diamond Bar " is home to many South Koreans on US corporate assignments," and that Korean domestic market cars are a common sight in the area.

The big, rear-wheel drive four-door saloon shares its underpinnings with the Hyundai Genesis and it is aimed at high-end luxury saloons such as the BMW 7-Series and the Mercedes-Benz S-Class. Currently offered only in Korea, the Equus is available with a 290HP 3.8-liter V6 and a 4.6-liter V8 delivering 366HP.

During it official unveiling at an event in Seoul in March, Hyundai said there are currently no plans to export the Equus to the North American or European markets. However, the Korean automaker brought the saloon over for show in New York in early April.

source: http://carscoop.blogspot.com

READ MORE - 2010 Hyundai Equus Spotted with U.S. License Plates in Los Angeles

My Two Dents on Hyundai's Lexus LS Rival, the Equus

Two words I never would have expected to hear in the same sentence five years ago: Hyundai and luxury. In fact, I would have thought you were a little confused. Well, I guess that's egg on my face. Over the past few years the little Korean automaker-that-could has been turning itself into a powerhouse brand with impressive quality, price points, design, engineering, and performance. The automaker whose dealerships I tried to avoid like the plague only a short time ago now has a lineup that has me wanting to take a second look.

First came the Genesis, a lux-ish sedan that provides a V8 and rear-wheel drive to compete with the big boys from Germany and Japan while undercutting their prices by a wide margin. Then, hot on the Genesis sedan's tail came the Genesis Coupe with its 2.0-liter turbo four or big 300HP+ V6, again offering performance by mating both to a 6-speed stick and RWD.

Finally, just this week in New York Hyundai had their new home-market flagship on the podium, the new Mercedes S-Class sized Equus sedan, you know, just for show (yeah right). No doubt if reactions are good they'll be bringing this puppy across the Pacific to start recruiting Mercedes and Lexus buyers. If prices for the six-cylinder were really to start in the 40k's as rumors suggest, I can imagine a loaded model with the V8 would still come in under most competitors' prices.

I'm not quite sure where Hyundai got the nerve and the skills to leapfrog some of Japan's best attempts at top tier status (Acura and Infiniti, for example), but boldly bearing down on Lexus and Mercedes has definitely gotten consumers' attention. Never in a million years would I have thought that serious people would be comparing Hyundai with manufacturers from the inner circle of luxury.

From the looks of it, the Equus is just the next stage in Hyundai's grand scheme to show people the Japanese aren't the only Asian automotive force to be reckoned with. Having seen its flagship, now I'm (I can't believe I'm saying this) eagerly anticipating the Tiburon's replacement. Mercedes and Lexus, watch your backs. It's looking more and more like Hyundai will be a real contender in the years to come.

source: http://carscoop.blogspot.com

By Phil Alex

Phil Alex was born in Rhode Island in 1985, yet for reasons unbeknownst to him moved to South Carolina. He graduated with degrees in Finance and German from Wofford College in 2007 and has had a strange obsession with cars and travel since he was a wee lad. He currently resides a stone's throw from Japan's international airport in Narita. All of this can be seen on Facebook, so check it out. He makes no apologies for his articles and welcomes all feedback, as long as it is adamantly worded.

READ MORE - My Two Dents on Hyundai's Lexus LS Rival, the Equus

Hyundai brings its Mercedes S-Class rival, the 2010 Equus, to New York

While Hyundai remains firm to its decision not to import its Mercedes S-Class rival, the all-new 2010 Equus, to the States, the Korean automaker decided that it would be good for the brand's image to bring the flagship sedan over to the New York Auto Show. At the same time we're gathering that Hyundai execs will be keeping a close eye on the reactions of the press and consumers alike to see what they have to say about the Equus that sits above the Genesis in the firm's vehicle line-up. Hit the jump for the photo gallery from New York or click here to read our detailed article on the Equus.

source: http://carscoop.blogspot.com

READ MORE - Hyundai brings its Mercedes S-Class rival, the 2010 Equus, to New York

New Hyundai Equus Limo Spotted in Dubai

Either a Hyundai executive in Dubai received an early example of the Korean firm's all-new flagship limo that was revealed in Korea in mid-February, or the company plans to include the United Arab Emirates among the countries that will receive the new Equus sedan as these pictures from the folks over at "Gulf4Cars" suggest. According to an earlier statement from the company, there are no plans to export the Equus, which is heavily based on the rear-wheel drive Genesis sedan, to North American or European markets.

Via: Gulf4Cars , Thanks for the tip Ashur!

READ MORE - New Hyundai Equus Limo Spotted in Dubai