Hyundai to (Finally) Start an Upmarket/Luxury Division

[mmcartalk]

Late breaking story in Business Week, Hyundai president reports gloomy outlook for 2016. How solid are their Genesis plans now?

A good question, but the original plan was to sell them out of existing Hyundai dealerships until money is available for separate upmarket dealerships. Ford is more or less doing the same thing, right now, with Lincoln.

I agree with you, though, that this is not a completely done deal yet by any means. A couple of decades ago, Mazda also had big plans for an Amati upscale division (and even developed the Millennia sedan for it)....then Ford, their owners, axed the idea for lack of funds. The Millennia and 929 ended up being sold as regular Mazda products.

 

[IS-SV]

A good question, but the original plan was to sell them out of existing Hyundai dealerships until money is available for separate upmarket dealerships. Ford is more or less doing the same thing, right now, with Lincoln.

True about Lincoln as an example, and we know how that's going (unfortunately poorly).

 

[IS-SV]

Late breaking story in Business Week, Hyundai president reports gloomy outlook for 2016. How solid are their Genesis plans now?

Yes, they've noted heavy exposure to slowing sales in China and developing nations. Although Genisis intended markets might be different than those, the large premium car markets are even more competitive.

 

[mmcartalk]

True about Lincoln as an example, and we know how that's going (unfortunately poorly).

Not as poorly, though, as they have been for the last several years. I won't get into the Lincoln alphabet soup again that you hate, but their last two new introductions have definitely been an asset.

One thing going for both Hyundai and Ford, though (besides gas-mileage-rating problems LOL), is that both corporations are huge, and, even if the funds aren't there right now for separate upmarket dealerships, have the potential for them later. It's mainly a question of the public buying their products and providing the revenue.

 

[IS-SV]

Not as poorly, though, as they have been for the last several years. I won't get into the Lincoln alphabet soup again that you hate, but their last two new introductions have definitely been an asset.

One thing going for both Hyundai and Ford, though (besides gas-mileage-rating problems LOL), is that both corporations are huge, and, even if the funds aren't there right now for separate upmarket dealerships, have the potential for them later. It's mainly a question of the public buying their products and providing the revenue.

I don't want to get into off topic discussion as to just how "poorly" (degrees of "poorly) Lincoln has performed even in recent years, not applicable.. The last 2 Lincoln introductions were largely non-events in premium car business, with most potential buyers not knowing or caring unfortunately. Even the most popular Lincoln models today sell poorly by the standards of successful tier 1 and tier 2 premium brands, especially at retail level.

We know all that about "a question of public buying their products and providing the revenue", that's more than obvious.

Being "huge" (with huge debt) is no guarantee of success in premium car business, lol Ford has shown us that for over a decade.

Let's hope that Hyundai (and Lincoln) can release some new outstanding products worthy of a premium brand, still TBD.

 

[mikeavelli]

https://www.autonews.com/article/20...lamborghini-exec-fitzgerald-to-shape-strategy

Hyundai hires former Lamborghini exec Fitzgerald to shape strategy for Genesis

Former Lamborghini executive Manfred Fitzgerald has been tapped to oversee the new Genesis luxury brand's global strategy.
December 28, 2015 - 6:36 am ET -- UPDATED: 12/29/15 8:14 am ET - adds link to statement
SEOUL (Reuters) -- Hyundai Motor Co. said it hired former Lamborghini executive Manfred Fitzgerald in the latest effort by the South Korean automaker to shed its image as a value-for-money brand.

Fitzgerald, a former director for brand and design at the Italian sports car maker, will take charge as senior vice president at Hyundai Motor, and will oversee the automaker's global strategy for luxury car brand Genesis, Hyundai said in a statement today.

The 52-year-old left Lamborghini in 2011 to join German TV maker Loewe, before setting up a brand consultancy firm named The Brand and Design Company in 2013.

Hyundai, ranked together with affiliate Kia Motors as the world's fifth-biggest car maker, last month announced the launch of Genesis, tapping into the high-growth, lucrative premium segment as it grapples with dwindling profits.

Fitzgerald will be stationed at the company's headquarters in Seoul.

Fitzgerald will join Chief Design Officer Peter Schreyer as one of a handful of non-Korean executives, including Luc Donckerwolke of Bentley and Albert Biermann of BMW, at the automaker's headquarters in Seoul.

"The challenge for foreign executives is to harmonize with locals, while building Hyundai's own identity in the premium market as an Asian automaker," said Lee Hang-koo, a senior researcher at the state-funded Korea Institute for Industrial Economics and Trade.

Fitzgerald will initially report to Chief Marketing Officer Cho Won-hong, who joined Hyundai in 2010, a Hyundai Motor spokeswoman said.

 

[mmcartalk]

Looks like quite a switch in jobs. It's a long way from marketing Lambos to marketing upmarket Hyundai/Kia products. Genesis models, no matter how nice they are, aren't going to sell for 300K apiece. On the other hand, of course, Lambos don't sell in Hyundai-volume, either.

 

[Och]

I don't want to get into off topic discussion as to just how "poorly" (degrees of "poorly) Lincoln has performed even in recent years, not applicable.. The last 2 Lincoln introductions were largely non-events in premium car business, with most potential buyers not knowing or caring unfortunately. Even the most popular Lincoln models today sell poorly by the standards of successful tier 1 and tier 2 premium brands, especially at retail level.

We know all that about "a question of public buying their products and providing the revenue", that's more than obvious.

Being "huge" (with huge debt) is no guarantee of success in premium car business, lol Ford has shown us that for over a decade.

Let's hope that Hyundai (and Lincoln) can release some new outstanding products worthy of a premium brand, still TBD.

Nameplates like Hyundai and Lincoln are just too plaqued with their past that they can never be successful in the premium segment. Whenever I hear Lincoln, the first image that pops up in my mind is a leaking, squeaking beat up town car driven by a smelly cabbie. Whenever I hear Hyundai, I think of a sad green mid 90ies Elantra, and I have to look up its spelling every time I type it. They are smart to launch an independent premium division, but they need to go all out like Lexus in order to be successful. So far their attempts have been half assed, and they will get half assed returns.

 

[mmcartalk]

I just keep looking at this car and have no idea why they think that is going to sell. It is really missing the exterior part here and proportions they actually got right on the Equus and K900.

Although the 2Gen Genesis has a nice cushy ride over bumps by today's standards (surprisingly so for the low-profile tires) like the soft Equus and K900, it is also more of a driver's car....especially with the 5.0L RWD. The Equus and K900 are strictly highway cruisers (which, of course, some people want, but enthusiasts tend to shun). The new Genesis, through some good chassis engineering reminiscent of some upmarket German sedans, manages to combine comfort with handling....a combination not often seen from Korean-designed products. That's why I think it will tend to sell itself if people will actually go try it out.