Image Source: Genesis Motors USA
The new Genesis brand of luxury vehicles has been launched with Hyundaispeed! Bbalee! Bbalee! Quick, quick in Korean.
Finally, Hyundai Launches a Luxury Brand After years of deliberation, argument, and negotiation, Hyundai has launched the new Genesis brand. Hyundai officially announced the new Genesis brand in November 2015. Erwin Raphael was appointed head of Genesis in March 2016. The new Genesis brand goes public in September, 2016. That is quick – bbalee, bbalee!
In reality, the new Genesis brand is not a big deal. The brand will have only six vehicles by 2021. This does not approach the dozens of models offered by Mercedes-Benz, BMW and Lexus.
But wait. That is wrong, Genesis is a BIG DEAL! Genesis is the only luxury car brand launched after 1990 that has a deep pockets major manufacturer behind it. Tesla, launched in 2004, is questionably viable in the long term.
Hyundai has decided after years of consideration that a stand-alone luxury brand is a BIG DEAL. The resources of Hyundai are committed to guarantee its success. Hyundai presently has about 835 dealers in the United States. The new Genesis brand will launch with about 300. These have been selected with great care. The Genesis Institute will train dealer salespeople across the country.
Aggressive Launch Marketing The new Genesis brand launches with all guns blazing. Genesis launches as the luxury car sponsor for the National Football League. They are the sponsor for the Los Angeles Open golf tournament at the Riviera Country Club. These sponsorships are sure to make a splash. By early 2017, awide cross-section of American car buyers will know Genesis as a brand. They will know Genesis now exists as a brand rather than just a few car lines resting atop the Hyundai Motor America lineup. This will get the new Genesis brand and the two vehicles it will initially have to sell – the G90 and G80 – on the radar of people who have money to spend on their next new vehicle.
While Genesis vehicles promise to be outstanding, the brand’s commitment to its customers is a cornerstone of its existence. Genesis wants to take the customer experience to a whole new level beyond Lexus, Mercedes and BMW.
Respect for Time Respect for the Genesis Customers’ time is of paramount importance. Time is precious and cannot be replaced. So lets call this the Genesis “Respect Initiative”. Tthe features of this “respect initiative,” hovever, last only for 3-years and 36,000 miles. The 3/36 commitment results from Genesis management estimates that up to 80% of Genesis vehicles will be leased and the majority of those leases will be for 3-years and 36,000 miles. During the “respect period” Genesis owners/lessees will get full maintenance, valet service, SiriusXM Traffic and Travel Link, navigation map updates, 24/7 roadside assistance with concierge service, and Genesis Connected Services. It would not be a surprise if Genesis has a comprehensive CPO (certified pre-owned used car) program in place by the time the first vehicles come off lease that would extend the “Respect Period” for subsequent owners.
Genesis Uses Hyundai’s In-House Advertising Agency – Innocean While Genesis is a stand-alone brand, it accelerated its launch by using Innocean as its advertising agency. Innocean is owned by Hyundai and also handles advertising for Hyundai brand vehicles. By using Innocean, Genesis gets a known quantity without lengthy reviews to select from numerous agencies vying for the job through lengthy and expensive reviews. Also, there is likely a “family discount” for using the in-house agency in there somewhere.
When asked by an advertising-savvy media member how the new Genesis brand will target its buyers after the NFL and LA Open hoopla, Genesis and their agency will “respectfully” target anyone who can afford to buy their cars. Genesis head Erwin Raphael contends they have no specific target buyer in mind – no age range, gender, or ethnicity. They are just targeting the ability to pay a certain lease fee for their G90 and G80 sedans. And after the brand is launched with heavy advertising and sponsorships, specific groups will be emphasized using Internet messaging and social media.
Product is the Foundation Leading to The Genesis Customer Experience Presently, there are six vehicles planned for the Genesis lineup. There are four cars and two SUVs. The G80 luxury sedan is on sale now. It is a 5-Series/E-Class competitor. The all new G90 (formerly Hyundai Equus) luxury sedan goes on sale in September. It is a competitor to the Lexus LS, Mercedes S-Class and BMW 7-Series. Later comes a BMW 3-Series competitor – the Genesis G70. Then a near luxury sport coupe is launched. There will be a mid-luxury sport utility vehicle and a near luxury SUV. Frankly, they cannot get these SUVs on the market quickly enough.
Based on driving the G90 and G80, Genesis products promise to give the best entries in the competitive set a solid run for their money. Initially, they will be value propositions. You will get more features and content for your money. Such a deal!
Check most of the boxes needed to win in the highly competitive compact car segment and the 2017 Hyundai Elantra does not miss many chances to excel. Following the mantra of “democratization of technology” Elantra has most of the high tech infotainment and technology features available. When you pop for them all, the retail price is $26,750. This is a lot for a compact car of a decade ago, but not bad for the fully loaded Limited model of the all new Elantra. For those not wanting or needing the full equipment load, the starting price is around $17,000.
Good Ease of Use For a person reasonably familiar with today’s cars, the Elantra is easy to figure out. It might not pass the rental car test where you should be able to start the car, turn on the headlights, adjust the radio and air conditioning system on a stormy night at Hertz, but it comes close. Easy to understand and use are the keynotes of Elantra design.
Created to provide a destination for buyers wanting to downsize, Elantra has all the features with the possible exceptions of cooled seats and adaptive cruise control that brings you to a full stop and then proceeds when traffic moves forward. For buyers wanting to upgrade, everything is there. For a price.
Easy to Drive Elantra is quiet, solid, comfortable. It handles very well on aggressive back-California roads. It is acceptably fast. It has an automatic 6-speed transmission with its base 147-horsepower 2.0L 4-cylinder engine. (There is an eco model available with higher fuel economy powered by a 128-horsepower 1.4L 4-cylinder turbo mated to a 7-speed EcoShift dual clutch transmission with limited feature availability).
The interior package is similar to a mid-size car of the prior generation (it is rated mid-size by the EPA). In fact, Elantra has about the same interior size of a Cadillac CTS and is bigger than a BMW 3-Series or Audi A4. Interior materials are a notch above what used to be expected in this class of car. The upper surface of the instrument panel is soft, but adjacent materials are hard while pretending to be soft. The trunk is large, but accessed through a small opening due to its relatively fastback design.
Comprehensive Feature Availability There is a 4.5-inch multi-color display between the gauges in the instrument cluster. In the center stack, there is either a 7-inch or 8-inch monitor depending on features selected. Both Apple CarPlay and Android Auto interfaces are avaiilable. To enhance the sound of your music there is Harman’s Clari-Fi Music Restoration Technology. Nice… very comprehensively done.
No Longer Head-Turning Elantra is good looking, but not head-turning like its predecessor. In the rear view, Elantra gets lost in traffic. Its distinctive front view is highlighted by its large trapezoidal grille opening and LED accents on higher trim models. Functional outboard vents in the front fascia direct air over the front wheels and help aerodynamics. Vertical LEDs accent the outboard vents in top of the line models. But overall, like the larger Hyundai Sonata, Hyundai has become more timid with its new compact car entry.
Elantra GT Coming Coming in Fall 2016 is the Elantra GT with a 200HP 4-cylinder turbo and distinctive front and rear styling and unique interior trim. The GT model will have a DSG
Raising the Bar in a Competitive Segment The Koreans keep getting better and the new 2016 Hyundai Tucson (product code TL) is an example of how Hyundai has executed a segment-beater. Competing against big sellers Honda CR-V, Toyota RAV4, Ford Escape, Jeep Cherokee, Chevrolet Equinox, Mazda CX-5, etc. the new Tucson checks all the boxes. It is well styled and immediately identifiable as a Hyundai (looks almost too much like the Santa Fe Sport). It has a great package – good visibility, spacious front and rear seating, good cargo room, easy ingress/egress. The fit and finish is excellent inside and out. The interior trim materials have moved upwards – almost up to the next higher price class.
MY16 Hyundai Tucson
MY16 Hyundai Tucson
Hyundai Fell Behind in Segment – 2016 Hyundai Tucson Provides Conquest Opportunity The product is good enough to begin some serious conquesting. As the compact crossover SUV market has boomed over the past several years (growing 14.9% 2015CYTD), Hyundai has been left with a less-than-competitive product capable of selling around 45,000 per year. As such, Hyundai Motor America’s share of the segment slipped from about 6% to 2.5%. Some of that is due to capacity constraints from its Korean plant. A new plant in the Czech Republic has come on line and will be supplying Europe freeing up Korean capacity. With the new Tucson on sale in August, 2015, HMA’s volume is expected to rise to 56,200 in 2015 and up to 90,000 or higher in 2016. The 2015 Hyundai Tucson is good enough to pull that off if there is strong marketing support behind the vehicle (the last generation was essentially a “launch and leave” proposition with little marketing support). At 90,000 units, the Tucson will have about 6% of the segment.
Pre-Family Market Target Who will buy the 2016 Hyundai Tucson? HMA sees this as the entry targeted at “pre-family” singles and couples. Tucson is 8.5-inches shorter than the Santa Fe Sport that is targeted at “post-family” couples who no longer need the seven-passenger three row capacity of the 8.5-inch longer (than Santa Fe Sport) Santa Fe. Santa Fe is targeted at “core families”. Tucson democratizes technology by offering most of the latest gee whiz electronic features available on higher classes of products.
Hyundai describes its styling as bold and confident and it certainly comes across that way. It has a slightly more vertical windshield that helps ingress to the front seats. Tucson adopts Hyundai’s new corporate face with the hexagonal grille. From the side view, the Tucson is lean and wedgy. Exterior styling was by Hyundai’s European studio. The interior was styled in California. Ergonomics are outstanding with controls placed where expected. There is an 8-inch information screen with navigation and Hyundai’s BlueLink interface. The only criticism is with map graphics that don’t show enough detail and seem to show only major arteries, not the interesting spur roads you pass.
MY16 Hyundai Tucson
Powertrain OK but Full Throttle is Disappointing The base engine is Hyundai’s Nu 2.0L GDI 4-cylinder that has 164-horsepower and 151 lb ft of torque. The 2.0 L mileage figures are 23/31/26mpg. The 2.0L gets a six-speed automatic transmission. The optional engine, and the engine on the majority of Tucson models, is the Gamma 1.6L 4-cylinder Turbo with 175-horsepower and 195 lb ft of torque. The 1.6L mileage figures are 26/33/29mpg). The 1.6L gets a seven-speed dual clutch transmission. You definitely want the higher torque 1.6L Turbo. The torque is the key to performance feel. In the examples of the Tucson I drove, there was a noticeable lag when full throttle acceleration was wanted or needed from a stop (with traffic approaching, for instance). Pedal to the metal was disappointing. On a part throttle take off, this was not evident. It seemed to happen only when you really wanted the oomph. This is a characteristic an owner will learn over time, but Hyundai should sort it out ASAP.
I’m really not a hypermiling type of guy – I usually drive a twin-turbocharged V6. When the opportunity to drive from Miami Beach to Key West came up, I admit the allure of Key West was more than the chance to get the maximum fuel economy out of a Kia Optima Hybrid and new Kia Rio. Having grown up in Florida, the northern part, I had never been to Key West – got as far as the Everglades a couple of times.
Kia Optima Hybrid and Kia Rio
The cars did not disappoint and Kia threw in the chance to attend GRAND-AM Continental Tire/Kia200 Sports Car Challenge race at the Homestead-Miami Raceway. So how could I refuse?
Optima – Elegant Mid-Size Style With Maximum Fuel Economy The Optima is one of my favorite mid-size cars. Its styling is great and interior is very easy to live with. From my perspective, the Optima style is very sophisticated and European. Coming from the “junior” Korean manufacturer, the Optima is much better looking than the swoopy Hyundai Sonata that has turned so many heads since its introduction in early 2010. My guess is that the Optima style has more staying power than the Sonata which may age pretty quickly.
Adding the Hybrid model to the Optima lineup gives Kia a price-efficient, fuel-efficient combatant in the growing fuel economy battleground among mid-size cars.
All New Rio – Bottom-Feeder No More This was the first chance I have had to drive the all new Rio. As the bottom entry in Kia’s lineup, the Rio has evolved from a cheap, cheap tin can to a very worthy small car. Of course, it is not cheap, cheap any more, but it is reasonably priced. The model we drove was priced a notch above $20,000 but had everything on it including a navigation system, sun roof and leather seats. In previous generations, it would have been unheard of to have this level of equipment available in the lowest priced car from a mainstream brand. With a front seat package rivaling a mid-size car in size, folks are no longer “sentenced” to drive a small car.
The all new Elantra is the top ranked Compact Car in AutoPacific’s 2011 Ideal Vehicle Research. As the class winner, its owners indicate there is little they would change about the car with only a few notable exceptions. About 30% of Elantra owners want improved visibility (somewhat compromised by the swoopy styling of the new body). About 25% want more power and a softer ride. About 20% want more infotainment technology. Elantra owners most like the Elantra for its seat comfort, styling and exterior size. Elantra outpoints the second place Volkswagen Golf by a wide margin.
The Azera is the top ranked Large Car in AutoPacific’s 2011 Ideal Vehicle Research. Its owners indicate there is little they would change about their new car with a few notable exceptions. About 25% of the owners want more infotainment technology. About 20% want the Azera to be easier to get into and out of. About 30% would like a softer ride in their Azera. They most like the Azera’s seat comfort, tires and wheels and exterior size. The Azera wins its class by a wide margin over the second place Toyota Avalon.
There are no bad cars. It’s been years since I’ve seen a really bad car to be sold as new in the USA. Maybe the not lamented Chrysler Sebring came close before it evolved into the Chrysler 200 for 2011. So, as the new V-Platform Nissan Versa is poised to be launched for the 2012 model year as the lowest price new car available in the USA you wonder if a new car priced so low is a bad car? The answer is a resounding no. But with the Versa and new Hyundai Accent arriving almost concurrently on the market it begs brief comparison.
2012 Nissan Versa Sedan
2012 Hyundai Accent Sedan
The all new Hyundai Accent has just been introduced and it may be the final part of Hyundai’s grand slam in sedans. First the Genesis, winner of AutoPacific’s Vehicle Satisfaction Award (VSA) in each of its three years on the market. Then the all new 2011 Sonata that won the only President’s Award (highest VSA score ever) given by AutoPacific and then won best in class for the model year. The all new Hyundai Elantra won best in class among compact cars for the 2011 model year. Three out of three isn’t bad. The new Accent is certainly a contender.
First we had the Sonata and now we have the Elantra. The Sonata was the direct hit to the gut but the Elantra is the uppercut that no one saw coming. Gunning for the respect of Hyundai naysayers, the Elantra delivers the quality, fuel economy, and price tag that will change minds and make believers.
While other automakers have raised the price of their new c-segment vehicles to make them in America with a profit, Hyundai has changed the game again. Hyundai seems to be bucking the trend these days of lofty price tags. The Elantra is a stylish value package assembled in the good ol’ U.S. of A. that needs to be at the top of your test drive list.