Hyundai Enters Luxury Segment
Will Wonders Ever Cease?
Who'd have thunk it! Not many years ago Hyundai cars were the butt of jokes. A laughing stock. Owners were ashamed of them - and angry too. Often for good reason.
But not any more. Hyundai now offers a range of reliable, well styled, good value vehicles. Sedans, SUVs, a Minivan, even a sporty coupe. Their US sales are up - way up versus 10 years ago. About 455,000 units in 2006, more than Pontiac, for example.
The current top of the line sedan in the US is the Azera, a $25,000 - $30,000, 3.8L V6 powered front wheel drive 4-door sedan. Soon the Veracruz Crossover SUV will top its lineup. Not for long! Hyundai will soon introduce the "BH" sedan. A concept version will be shown at the NY Auto Show in early April as the Hyundai Genesis; the production version will be introduced in South Korea late this year and in the US in 2008.
Can Hyundai make a true luxury car? No doubt about it. I expect the BH to be full-size, full-featured, a rear wheel drive vehicle, with a powerful V8 engine. We hear that the output of the V8 will be over 350-horsepower. Quality...well it won't be Lexus level, but I'll bet it is at the Mercedes/BMW/Audi level - maybe better than some.
How about style? Some Hyundai vehicles have had quirky style. I'm not really sure what the BH will actually look like. But I have seen some sketches of the Hyundai Genesis concept car. The renderings show a car that is a little too Mercedes CLS-like for my taste. Our guess is that these renderings are way exaggerated. For instance, the roofline won't be as coupe-like and the style will not be as swoopy.
Exterior style and interior package have to be carefully balanced. My guess is that the production sedan will be more S-Class sedan like than the sketches suggest.
The Product is only the start...
Just developing a true luxury entry is a major accomplishment. Making it profitable is something else altogether. Lexus has shown that it can be done. But the Infiniti and Acura experience suggests that the whole exercise may involve a huge investment and take years to be profitable. Hyundai may or may not go with a unique luxury brand name, but either way, this is a major undertaking. Luxury cars are all about pride and prestige, and this isn't an easy hill to take.
