Hyundai’s Luxury Trifecta: Power, Technology, Safety
There’s irony in today’s marketing trends of carmakers when luxury automakers are introducing lower-priced models to compete with mass produced vehicles, and carmakers of affordable volume sellers are heading into luxury territory.
These automakers have been moving seriously down market with new entry-level models, which can be under-$30,000, while Hyundai, generally known as a manufacturer of more affordable cars is growing its sales of luxury vehicles. The Hyundai Genesis and Equus are garnering favorable comparisons with the best luxury models.
That’s because the technology, safety, performance, and overall luxury and design of the Genesis and Equus are earning high marks with car buyers and their competitors grudgingly admit the Korean-built cars are becoming a force to be reckoned with. And if there’s any question about the quality of Hyundai cars, the 2015 Hyundai Genesis may put that uncertainty to rest for good.
Nearly half of Genesis customers move up from lower-priced Hyundai models, but slightly more than half buy the Genesis when trading-in Japanese, German and American luxury cars.
A Hyundai marketing executive said the Genesis is conquesting owners of other luxury models that when similarly equipped cost thousands of dollars more. Offered in rear-wheel-drive and all-wheel-drive, the starting price for the 2015 Genesis is $38,950.
The second-generation Genesis offers all-wheel drive for the first time. Hyundai’s AWD system is called “HTRAC” and is especially popular in the northern tier of the U.S. where snow storms can rage from late autumn to late spring. In addition, the Genesis contains much more high-strength steel to make its platform more rigid and reduce overall vehicle weight.
New technology is found throughout the 2015 model. One especially cool feature is the “smart trunk.” The car owner merely has to stand in back of the car for 3 seconds with the key fob on his or her person and the trunk lid almost magically pops open without the need to put down arms full of packages. (For this feature to work, the car doors must be unlocked for 15 seconds).
Hyundai also provides lots of power in the Genesis. A 5.0-liter V-8 that cranks out 420 horsepower is available and is expected to be selected by 15 percent of the car’s buyers, a Hyundai spokesman said. Most Genesis buyers, however, will roll off dealer lots with the 311-horsepower, 3.8-liter V-6. The power output of both engines either matches, or exceeds that of the powerplants in major competitors.
Surprisingly, AWD is available only with the V-6. Hyundai reports there are no technical limitations in mating AWD with the V-8, but the take rate is so small at present the automaker decided to limit the option to the small engine model only.
Luxury car buyers tend to be drawn to existing premium brands that have much cachet and exclusivity surround- ing their names. Whether Hyundai can grow its luxury model sales without this cachet remains to be seen, but the Genesis is a good candidate to crash into this exclusive segment with all the features buyers of luxury cars yearn for — and at a very attractive price.