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Is There Room in the Luxury Market for Hyundai?

4242 messages,  Last post on Dec 02, 2009 at 2:51 PM

You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires

What is this discussion about? Hyundai Equus, Hyundai Genesis, Car Comparisons


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#2469 of 4242
Re: Made the top 5 [steve_] by tenpin288
Jun 23, 2009 (9:15 am)
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Replying to: steve_ (Jun 23, 2009 8:37 am)

Here's an interesting quote from the head honcho that was in USA Today. Take note of the last part of this blurb...
 
At Hyundai, the mood was ebullient as the automaker came in fourth — behind luxury brands Lexus, Porsche and Cadillac.
 
Hyundai has been working to raise its quality image for more than 10 years, says acting CEO John Krafcik, after it began offering 10-year powertrain warranties.
 
"It's been a wonderful internal rallying cry ... and it's not costing us anywhere near what we thought it was going to," says Krafcik, noting the warranty is here to stay.

 
Interesting.
#2470 of 4242
Good to hear... by iluvmysephia1
Jun 23, 2009 (11:47 am)
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that Hyundai/Kia are going to keep the generous Warranty.
#2471 of 4242
Re: Made the top 5 [steve_] by houdini1
Jun 23, 2009 (11:47 am)
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Replying to: steve_ (Jun 23, 2009 7:08 am)

Certainly Hyundai could be called a non-premium brand. That does not mean that they don't make any premium cars. IMO.
 
Additionally, the Powers report stated that "The Genesis significantly outperformed other Premium Sedans.
 
Insure.com has ranked the 2009 Santa Fe as costing less to insure than any other vehicle.
#2472 of 4242
houdini... by iluvmysephia1
Jun 23, 2009 (12:02 pm)
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exactly. Hyundai is no slouch as a car/SUV-maker, by any stretch. They have hit the big time and can no longer be drug through the mud by anyone.
 
Let's put it this way, the one dragging them through the mud now is only straining their own muscles and giving theirselves a hernia. May they rest in peace.
#2473 of 4242
Re: Made the top 5 [steve_] by ateixeira
Jun 23, 2009 (12:42 pm)
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Replying to: steve_ (Jun 23, 2009 8:37 am)

It's a good intial sign, and certainly not meaningless, but...
 
I think their 5 year Durability Study is more meaningful, for instance.
 
Also, I recall the Hummer H2 came out and it did poorly, and one of the reasons stated was that gas mileage was worse than owners expected.
 
Here's the thing - how is poor gas mileage a quality problem? I mean, it's a Hummer, for crying out loud, how does JD Power interpret that as a lack of quality? They suck down gas very reliably, in fact they are probably the most RELIABLE consumers of gas on the planet! LOL
 
Same for the Mini Cooper - owners complained about a cup holder. The design may not be the best, but is that really a quality problem? I dunno, that's a stretch.
 
If we're talking about an average of 0.8 to 1.6 "problems" per car, and poor gas mileage on a Hummer or a lame cup holder on a Mini counts as 1 "problem", then maybe it is meaningless after all.
 
I think it's a good sign that Hyundai has moved up, and there are fewer complaints, but this is merely an early indicator, not a solid measure.
#2474 of 4242
Re: Made the top 5 [ateixeira] by steve_ HOST
Jun 23, 2009 (4:51 pm)
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Replying to: ateixeira (Jun 23, 2009 12:42 pm)

the Hummer H2 came out and it did poorly,
 
Yeah, that was the initial quality one I think, and JD Power redid their survey stuff after that. I think they gave less weight to the "The Driving Experience" section or expanded some of the other categories to compensate for the little gotchas like that.
 
True Delta never got my attention and CR has their own problems. Edmunds switched from JD Power Star Ratings a while back and now uses Identifix, which is what MSN Auto uses (or used).
#2475 of 4242
Re: Made the top 5 [steve_] by ateixeira
Jun 24, 2009 (8:23 am)
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Replying to: steve_ (Jun 23, 2009 4:51 pm)

Glad to hear they've refined the way they measure Quality. I guess I would not have a beef if they'd called it "Ownership Experience" instead, something like that.
 
How timely, though, that there was an Editorial in Automotive News yesterday by Jesse Snyder headlined "J.D. Power Initial Quality Survey defeats itself", arguing, among other things, that automakers are "doing such a good job that the Power IQS is almost meaningless as a buyer's guide".
 
One example they cite is that Honda's 5th place finish sounds much better than Saturn's 24th placement, but the actual difference is 0.2 problems per vehicle between the two brands, hardly worth mention.
 
I think what it will do is penalize a single widespread flaw, a car could go from first to worst if one single component is designed poorly, and it may not even be very significant.
#2476 of 4242
Re: Made the top 5 [ateixeira] by backy
Jun 24, 2009 (8:29 am)
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Replying to: ateixeira (Jun 24, 2009 8:23 am)

But I wonder if the exposure from surveys like the JD Power one give the automakers a little extra incentive to improve their quality? Look at the reactions of the automakers to the survey, e.g. the quote from the Hyundai exec. I have a feeling the automakers use the survey as a benchmark as to how well they are doing. Thus the JD Power survey doesn't actually defeat itself, but has helped encourage the automakers to improve their quality to the point where the scores are better than before, and closer than before. Maybe it is more accurate to say the JD Power survey is a victim of its own success?
 
Also, if a single important component is designed poorly, that could be very significant and maybe the car deserves to go to the bottom of the list in that case--especially since the overall quality of cars today is quite high relative to the past.
#2477 of 4242
Re: Made the top 5 [backy] by ateixeira
Jun 24, 2009 (8:41 am)
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Replying to: backy (Jun 24, 2009 8:29 am)

I do think it's an incentive to reduce the number of defects that would show up as lower quality scores, yes.
 
But that also might simply make automakers risk-averse. Why go out on a limb with a new technology if you'll going to get skewered if many units turn out to be faulty?
 
It'll certainly make the testing process more important.
 
the JD Power survey is a victim of its own success
 
The Editor said the same thing.
 
Any how, I think we're drifting a bit off topic, so taking this back to Hyundai...
 
The results may actually be more impressive that I was thinking, simply because the Genesis has a lot of new features that don't exist on their lower-end models. So to launch a new car, new powertrain, and add a lot of extra featuers (i.e. potential faults) and actually improve on IQ scores is an accomplishment for sure.
 
The funny thing is I don't think JDP measures Quality, per se, but problems or defects.
 
To clarify - the Genesis uses a high grade of quality leather, but the plain old cheap cloth on an Accent would earn it the same score (as long as it's not tearing apart at the seams).
#2478 of 4242
Re: Made the top 5 [ateixeira] by steve_ HOST
Jun 24, 2009 (9:25 am)
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Replying to: ateixeira (Jun 24, 2009 8:23 am)

Excellent point about the small difference in the top ten and the bottom ten on the survey.
 
Ok, time for a plug for the Genesis long term blog post earlier this week - it's all about quality (if you consider class to be an element of quality):
 
2009 Hyundai Genesis V6: Classy Looking Interior
 

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