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Automotive News & Views Is There Room in the Luxury Market for Hyundai?
4207 messages, Last post on Nov 27, 2009 at 7:46 AM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: lemko (Jan 16, 2009 7:41 am)
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Replying to: fintail (Jan 16, 2009 9:43 am)
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back in the later 80s, Toyota had already established itself as a manufacturer of really fine cars. So much so that when Toyota decided to establish a separate luxury brand to compete with those German brands, there were lines that formed among the existing Toyota dealers to fork over the franchise fees (not cheap BTW) and spend the money to build rather well appointed dealerships. The net effect of this was to minimize those brand startup costs. Car folks that opted instead for Infiniti were not nearly so lucky - partially because Nissan did not have the brand reputation that Toyota did at the time AND because the the Q was no LS., and further the other Infiniti offerings were nothing more then rebadged Nissans. Mazda, of course, never got out of the gate, and later had a tough time selling some relatively good cars as Mazdas. VW, of course, had one of the most monumental gaffes with the Phaeton, and failing to understand that nobody in their right mind would spend that kind of money on a 'VW'. Hyundai should learn from all this - and do what it can to establish 'Genesis' as a brand not necessarily just a specific model. - even to the point of requiring their existing Hyundai dealers to put up some fancy 'Genesis' signs on the front of their buildings and lots ,upgrading showrooms , hiring some real salespeople (over the age of 25) that not only know their products, also understand how to kiss a little booty, and lastly understand that if what they are selling is truly good then those sales don't necessarily have to be bought with cheap prices, gimmicky warranties etc.. Don't believe that it is too late for them to do this, the Azera sits as a perfectly logical 'ES' type competitor, and the Veracruz a logical RX/MDX/FX competitor - with only a little massaging in both cases. The Genesis remains what it is, a screaming value that may not get its just rewards, simply because of that italicized 'H" and because Hyundai's reputation, improving as it may be, is still well short of what those Japanese mfgrs. enjoyed 20 years ago.
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Replying to: captain2 (Jan 16, 2009 1:19 pm)
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Replying to: lemko (Jan 16, 2009 1:25 pm) Remember also that Lexus also defined the whole over-pampered customer thing, and it was Toyota (Lexus) that established those standards, procedures and business practices - a difficult thing to do with somebody that just invested millions to buy a franchise and a dealership.. Hyundai could even go so far as establishing a different set of service standards and even segregate their waiting and showroom areas into 'first class' and 'tourist' class' Might work. History tells us that Hyundai will have a helluva time being accepted into any 'luxury' market, make it 'Genesis' however, and maybe it can be judged for exactly what it is - or isn't. |
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Replying to: captain2 (Jan 16, 2009 1:19 pm) Of course it isn't too late. Maybe Hyundai is taking a page from Toyota's book: introduce a luxury, RWD sedan (and soon a hot sports coupe) under the existing brand, get buyers used to paying $33k+ for a Hyundai car and build a reputation for being able to make a car like that, then spin off a luxury brand at the right time. Sound familiar? It should. But just as Toyota didn't immediately sell its luxury and luxo-sport cars under a separate brand, it's not a mistake for Hyundai to wait awhile before it goes down that (very expensive) path. |
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Replying to: m4d_cow (Jan 15, 2009 1:08 am) On your more substantial points, 1) Lexus is quality product, MB and Audi are not. 2) I agree Hyundai needs better dealerships but the best customer service for car after purchase is no need for service. 3) Hyundai's reputation is moving up as fast as MB's going down. There's residual image value in the old brands but the sucker baggage is getting heavier. Hyundai is following Lexus' steps in its ascension. Sadly, for some folks, quality is never good enough--they have to throw money away to complete satisfaction. |
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Replying to: backy (Jan 15, 2009 8:38 am) #1684 of 1699 Re: [m4d_cow] by backy Jan 15, 2009 (8:38 am) Replying to: m4d_cow (Jan 15, 2009 7:55 am) Hmm, you bring up a possible strategy for Hyundai: cut back on product quality and warranty support, and use the savings to fund improvements in dealerships: nicer waiting rooms, white lab coats for all the techs, espresso machines, leather sofas etc. That would put Hyundai more on par with the likes of MB, maybe give Hyundai a fighting chance in the luxury sedan market, yes? |
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Replying to: lemko (Jan 16, 2009 9:57 am) |
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Replying to: Jozz (Jan 16, 2009 3:31 pm) Genesis is a very nice & apparently successful vehicle. However, to play Devil's advocate: 1) Lexus is a quality product, MB & Audi are not. Lexus, on the whole, is more reliable, but reliability does not equate quality. MB & Audi are bolted together just as well, if not better, than Lexus. + they are more driver orientated cars than the high quality 'toasters' of Lexus. The the quality of materials (not so much electronics) exceed Lexus by a good margin. Sit in them & if you don't get it, you don't get it. More on that later... 2) No need for service... Again, that's great if one wants to drive a living room couch around. Driver's cars, performance orientated, will always require more service. There's absolutely nothing wrong with this thinking as that's how most consumers will vote with their wallet. But, if one is inclined to truly enjoy driving, one must abandon the living room. Performance = more maintenance. Always had, always will. 3) Hyundai's rep is going up as quickly as MB is going down. Only in the CR world. Like it or not, Hyundai will not command now, or any time soon, the respect of the Luxury brands at the country club. That may sound bad, but suck it up, that's the real 'Luxury' world. RE: 'the more on that later'....Luxury cars are considered disposable. 3 years, warranties up, whatever, time to move on. Luxury car buyers care not about 10 year reliability. Status #1, which Hyundai has a hard road ahead to achieve, & if one loves to 'drive', driving characteristics, which involves more than driving in a straight line. Believe it or not, I like the Genesis, but is there room for it now in the Lux division? Maybe going against Lexus, but not the Germans.....YET!
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