QOTD: Better Off Mainstream?

Speaking at a preview event for the next-generation Hyundai Genesis, Hyundai CEO John Krafcik defended his company’s decision to forgo establishing a seperate luxury channel for cars like the Genesis and Equus. While the rationale put forth usually revolves around the exorbitantly expensive pricetag for launching a new brand and an all-new sales network, Krafcik put it from another angle.

Speaking to Automotive News, Krafcik remarked

“I do believe that when the three premium Japanese brands were launched, it was during a certain time in the industry when there was a certain optimism about where the industry was headed,” he said.

“I really believe that if those three companies had a chance to really think about their path, they might have taken the path that we chose.”

The epoch that saw the launch of Infiniti, Acura and Lexus was the peak of Japan’s “bubble”, when Japanese automakers seemed to have limitless budgets for new vehicle R&D, marketing (think of those wacky home-market ads with Hollywood star endorsements) and sales channels (whether it was new luxury brands in America or multiple sales channels in Japan).

At the time, the rationale was that a Nissan President or Toyota Aristo was suitable for sale with a more plebian badge in Japan, but American consumers would not be willing to shell out premium car money for a luxury sedan sold alongside a Corolla or a Civic, no matter how good it was.

Nearly three decades on and Acura is largely confined to America and China, while Infiniti seems to be stuck in the mud as far as becoming a global luxury brand. Even Lexus, which has become a household name on par with BMW or Mercedes-Benz, hasn’t made any kind of dent in Europe. Do you agree with Krafcik’s assessment? Let us know in the comments.