Could a separte Hyundai Genesis brand put some hurt on Toyota's Lexus?

If you had read my crystal ball article from last Saturday, you already know I think 2010 will be another banner year for value brands Hyundai, Kia and Suzuki. And now it looks like Hyundai is ready to take that momentum and firmly establish itself as a threat to Toyota’s Lexus by creating a sub-brand of Genesis products.

It’s no secret that the 2009 Genesis sedan was supposed to be the first of a separate, premium Hyundai brand marketed under its own banner like Lexus, Infiniti and Acura. At the time though, the Korean automaker’s dealers had individually just spent millions on upgrading their dealerships, and balked at further capital expenditures on an unproven strategy.

But with Hyundai breaking sales records on a monthly basis, the idea of selling a family of Genesis-branded vehicles separately has resurfaced within the company.

"Sectioning off the brand, that's the Holy Grail," said Hyundai Motors USA CEO John Krafcik to Ward's Auto.

Instead of costly, stand-alone facilities, though, the idea is a more cost effective approach. Like roping off a corner of existing Hyundai showrooms, creating “physical and psychological separation.”

The plan is to use the launch of the forthcoming 2010 Equus full-size sedan to “develop and further establish Hyundai as a legitimate force in the premium-luxury segments."

Do you think Hyundai’s new chutzpah is warranted?

Are the current and planned for Genesis products (and maybe a luxury version of a new Santa Fe to take on the Lexus RX) good enough to be considered alongside the existing Japanese premium brands?

[Source; Ward’s Automotive]

Comments

[Randy]

GM has done this for years, Cadillac's are sold alongside their more pedestrian brethren Chevrolet. This strategy hasn't hurt Cadillac. So the argument there has to be some snob-value doesn't seem to hold water. I don't see why people wouldn't go to a Hyundai dealer to compare their products to the competition.

If the product is good, they will come.

[p00ch]

There is some logic to this. I can't really imagine a BWM/Mercedes/Lexus buyer cross-shopping these with a Hyundai. That's not a jab at Hyundai - they have great products, but the snob factor is alive and well in the luxury car segment.

[Cobra King]

Am I the only one who feels that Hyundai should blatantly stop copying other car manufacturer designs? The 2010 Equus looks like a mash between a Mercedes and a BMW - not a hint of original styling in there. I won't knock Hyundai for manufacturing robust affordable vehicles but their 'premium' vehicles and the suggestions of a 'premium' brand are both ludicrous.

[Guy]

I've never been a Hyundai fan, but I must admit they’ve come a long way and have nice looking vehicles with improved reliability. They absolutely should have a separate 'premium' brand like Toyota etc. However, base on their very short history of success, I’m not sure the time is right. If their vehicles continue to be reliable for the next 3-5 years, then they should take a close look at it. I’m not sure a Lexus driver will want to shop for a Hyundai though.