Posted on Thursday 8 May 2008
Hyundai, together with Kia, is the sixth biggest carmaker in the world in terms of sales but the company sees its future as being in the top five band of carmakers. To boost sales and market share, Hyundai is developing more premium models such as the new Genesis sedan and coupe but what executives really hope to accomplish is the launch of a full-line dedicated luxury brand like what Toyota did with Lexus.
Executives are in no major rush, and are in fact taking a wait and see approach with the launch of the new Genesis range. Hyundai will make a decision on a premium brand in three to four years and will gauge its decision based on the success of Genesis, reports MotorTrend. During a recent interview, Hyundai vice chairman Dong-Jin Kim said a Lexus-style brand is still too costly.
According to Kim, establishing the new brand would cost about a half-billion dollars and take up to 13 years just to break even and 20 years all up to cover any losses.
The new Genesis sedan is already on sale in South Korea and will make its way to China, the Middle East, Russia and the U.S. latest this year. The car won’t be sold in Europe just yet as Hyundai is wary of Lexus’ limited success in the region.
I wonder if they could just make Kia their mass market brand & Hyundai their luxury brand.
Creating a new luxury brand & moving the Genesis over is not gonna sit well w/ customers I don’t think.
That’s like suddenly making the Avalon a Lexus.