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Hyundai Equus, Hyundai Genesis, Car Comparisons
#3775 of 7308 Re: Stand Alone Dealers and Luxury car success [captain2]
Oct 21, 2009 (11:33 pm)
divSlapping a "Genesis" badge on the trunk makes a Genesis (presto/change-o) a luxury car, right?
* BMWs are commonly sold alongside $16k econo-hatchbacks, thus BMWs are not luxury cars, right?
- no slapping a 'Genesis' badge on the car doesn't in itself change anything, but anything that would serve to distance the car from its more mundane heritage can't hurt - that's exactly what the J3 did, isn't it? And it worked.....
- what BMW dealer sells anything (even preowned) for $16k never mind anything new? A Cadillac for $10k? One of us is living on a different planet
- V8 Audis, MBs, Lexii, and even Cadillacs (barely a lux brand) don't sell for $40k or even $45k they sell for $60k and sometimes a whole lot more."
1. Yes, it might help brand conscious consumers to consider the Hyundai brand. All Hyundai has to do is to put a nice pretty badge on it and the car will sell.
2. Hyundai is not following the other luxury makers because creating dealership networks for the Genesis would have been too cost prohibitive in a recession. Obviously, you do not realise how prudent Hyundai was, by not building a dealership network in 2009.
3. What makes you think that the laws of the universe, dictate how automakers follow a specific formula to sell cars? The world is a great place to live in because of its creativity/diversity. If every car followed in the same footsteps as bland vanilla Lexus(Well engineered car, lots of praise), it would be quite boring.
Plus, Hyundai executives, like John Krafcik, are really regretting the fact they didn't listen to the brilliant captain2 from edmund's forums regarding implementing luxury dealer networks. The point is, is that whatever Hyundai is doing with the Genesis sedan, it is working. Sales figures continue to hover around 1500-2000 range. If every car became the same bland vanilla Lexus, it would be quite boring.
#3776 of 7308 Re: Stand Alone Dealers and Luxury car success [bobad]
Oct 22, 2009 (12:07 am)
"Don't you think years of improvement and commitment to quality are more substantial than a re-badge? I know how important perception is, but give people a little credit. You and me know the Genesis is far removed from 1987, so others know it too. This isn't 1990. People are becoming savvy to marketing tricks."
I'd like to hear captain2 respond to this question.
Here is how I take it. Increasingly, people are beginning to wake up to the marketing gimmicks of the auto industry. Players that provide value at a good price are winning the purse strings of the economy sensitive buyers. Brands that can not meet these new guidelines in the auto industry will fail to gain marketshare. It is not a coincidence that the only manufacturer that provides a 10 year warranty while lowballing the competition by 10-20% is winning marketshare.
#3777 of 7308 Re: Stand Alone Dealers and Luxury car success [paradigmexp]
Oct 22, 2009 (6:01 am)
It is not a coincidence that the only manufacturer that provides a 10 year warranty while lowballing the competition by 10-20% is winning marketshare.
Some would say that that Hyundai's long warranty and low price are just marketing strategies to sell more cars. However, so are great engineering, refined engines, sensual styling, luscious interiors, and state of the art safety features. Shame on Hyundai for using all those marketing gimmicks.
#3778 of 7308 Re: Brand Loyalty [lokki]
Oct 22, 2009 (6:35 am)
Kind of what happened to Packard when they introduced the 120 and the Packard Six. Now, just about any Joe Schmoe could own a Packard.
#3779 of 7308 Re: Stand Alone Dealers and Luxury car success [paradigmexp]
Oct 22, 2009 (6:59 am)
If you studied closer, the quality/value ratio of the Hyundai vehicle is main reason why Hyundai is, still, selling cars in the United States.
I think you underestimate the effectiveness of financing anyone who can breath twice in a row in this equation.
#3780 of 7308 Re: Stand Alone Dealers and Luxury car success [lokki]
Oct 22, 2009 (7:11 am)
I think you underestimate the effectiveness of financing anyone who can breath twice in a row in this equation
May have been true years ago, but given the business climate and tight to almost a$$-clenched credit markets today, not true anymore. My wife and I have excellent credit and it's not easy for us to get credit for some things now that only took a quick signature a few years ago!
#3782 of 7308 Re: Stand Alone Dealers and Luxury car success [lokki]
Oct 22, 2009 (7:17 am)
OK, I'll call you on that. Please provide factual evidence that Hyundai dealers "extend financing to anyone who can breathe", or more practically that they have credit practices that are significantly looser than its competitors. In particular, for cars like the Genesis, since that is the kind of vehicle we are talking about here.
#3783 of 7308 Re: What's in a name? Value? [paradigmexp]
Oct 22, 2009 (7:20 am)
FWIW, the 10-year warranty started in late 1998, for the 1999 MY.
As for asking for people to use logic and fairness in their posts here.. I think you have seen that those are not requirements for participation in this forum.
#3784 of 7308 Re: Stand Alone Dealers and Luxury car success [bobad]
Oct 22, 2009 (7:43 am)
Don't you think years of improvement and commitment to quality are more substantial than a re-badge?
of course, years of improvement is EXACTLY what must happen.And it also is, incidentally, what has shown to work historically when it comes to mass market mfgr. establishing a luxury brand. Lest you forget, Toyota /Honda made some genuinely crappy cheap cars primarily in the 60s and starting improving rapidly in the early 70s, and stuck with it despite that the 'Jap crap' rep that followed them at least into the mid 80s. By the end of the 80s, however, Toyota (and Honda) products were almost universally recognized and accepted as superior - and deservedly so. This is what 'greased the skids' for Lexus and Acura.
So how does all this relate to what Hyundai is trying to do now ? For one I don't think that Hyundai is in anywhere near the same positive position today that Toyota and/or Honda were in 20 years ago. True or not, I believe that most autobuyers still think of Korean cars indifferently at best and negatively at worst. negatively.
For Hyundai to succeed in the luxury market, Hyundai needs to have the same reputations of superiority that Toyota (and Honda) did and yes the Hyundai name should have to improve to that level before even a 'rebadge' would work. So if we are going to accept the oft stated 2006 transformation in Hyundai's products, now we are going to also assume that Hyundai is going to do in 5 years something that it took the Japanese 15 or 20 to do? OR more importantly are we also going to assume that the consumer can accept the change that quickly??? I plainly, think not.
Is it coming and is Hyundai making progress, sure looks like it. I'm not arguing that at all. But we are supposed to be talking about Hyundai's success in the so called 'luxury' market TODAY and not necessarily what they might be able to do 5 or 10 years (or whatever) from now. Your 'years of improvement' and even 'committment to quality' seem to me to be just beginning and it should take several more years of doing just that BEFORE Hyundai will be generally known first for quality and less so much for lower prices - a necessary component, IMO, if any manufacturers ability to succeed in the 'luxury' car business.
PS If anything, it occurs to me that people are LESS saavy to marketing 'tricks' otherwise things like overextended warranties and/or purchase guarantee programs wouldn't work as well as they do.