Saturday, October 1, 2016

Say Hello to Genesis


Genesis G80
We all saw this coming.  Hyundai has finally realized its desire to offer a full line of luxury vehicles with the introduction of the Genesis brand.  It is pleasing to see how Hyundai has marched forward with this plan over the better part of the last decade to the point where most people do not raise their eyebrows at a Korean luxury car.  Anyone can throw some leather and wood in a car and call it luxurious, but it takes more than that to win over the opinion of the public who will ultimately purchase and support the product.  To that end, some major credit must be given to the marketing team, management, and engineers who made this possible.
 
 Hyundai began its climb up the luxury ladder in 2009 with the Genesis sedan.  It was positioned as more luxurious and sporting than the ho-hum Azera.  With rear wheel drive and an available V8 engine, plus Hyundai’s excellent warranty, the Genesis offered buyers a cheaper alternative to other entry level luxury sedans.  It scored favorably in comparison tests, and stayed in production until 2015 when it was replaced with a second generation model.

 The next Genesis featured noticeable improvements in design and performance.  Although the interior was still not quite up to the level of fit and finish seen in Audi, Lexus, or Mercedes, it was attractive and befitting of a $40,000 car.  More importantly, Hyundai worked diligently to address criticisms of the first car’s ride and handling.  To do this, Hyundai partnered with Lotus to sort out deficiencies with the car’s anti-roll bars, springs, dampers, steering calibration, and engine mounts.  A stiffer structure also helped contribute to a better sorted suspension.  Initial tests praised the 2015 Genesis’s steering as attentive and well-weighted; and its ride comfortable over rough roads.

 The second model of Hyundai’s luxury product assault was the Equus, a full size luxury limo.  It debuted in 2010 as a 2011 model.  Using the same platform as the Genesis, the Equus was sized and equipped to compete with the venerable Mercedes-Benz S-Class, Lexus LS, and Audi A8.  To differentiate itself from other cars, the Equus came with a unique ownership experience known as “Your Time, Your Place.”  An industry first interactive owner’s manual app provides a convenient and simple way for owners to become familiar with the vehicle’s capabilities.  Maintenance is completely free for three years or 36,000 miles.  When service is required, owners can schedule an appointment online, and can even have their vehicle picked up for them with a complementary loaner left in its place.  Once maintenance is completed, the owner chooses the time and place for their vehicle to be delivered.  Hyundai has introduced this program to all Genesis models, and it is likely other luxury brands will offer similar programs. 

Now in 2016, the Hyundai Genesis has become the 2017 Genesis G80, andis essentially the same as last year's model.  A few more optional equipment items are now standard such as lane keeping assist, adaptive cruise control, automatic braking, and blind spot detection.  Prices start around $40,000 for a V6 car and $54,000 for the V8. 

 The Genesis G90 is the successor to the Equus and benefits from a comprehensive refresh.  Much like the second generation Genesis, the new G90’s ride, build quality, and technology have been improved upon.  Pricing for the G90 should undercut the competition at around $70,000.  The G90 also has standard equipment items that are pricey options on German cars, further enhancing its value.

 For the time being, Genesis cars will be sold out of Hyundai dealerships, although the plan is for them to eventually have their own showrooms.  More models will be added to the lineup in due time, including a couple SUVs, a smaller sedan, and a coupe.  The big question remains though whether Hyundai's multibillion dollar investment in the Genesis brand will be worth it.

Hyundai likens Genesis as a Lexus for a new era.  Remember, Lexus was created by Toyota to take on the best of Europe at a more affordable price.  However, Lexus's real advantage was its superior build quality compared to its competitors.  The original Lexus LS shook the luxury market to the core with its hair thin panel gaps and bullet proof Toyota reliability.

 It will take years to see how much market share Genesis gains, but it can be expected that the new brand will build a healthy following for its value proposition and personalized ownership experience.  Hyundai has also demonstrated that it learns from past errors and continually works to improve its cars to stay in line with customer expectations.  Such diligence is admirable and can only be rewarded with success.

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