By on February 27, 2014

2015 Hyundai Genesis

Set to be introduced to the European premium market at the Geneva Auto Show next week, the Hyundai Genesis will be aimed at establishing a foothold for the automaker in the market against BMW and Mercedes upon arrival in showrooms in June, particularly in Southern Europe, Slovakia and the Czech Republic.

Automotive News Europe reports Hyundai expects to sell 1,000 of the premium sedans to a targeted group of customers who are familiar with the brand, especially those ready to attach diplomat plates to their new purchase. No price has been announced thus far, though the automaker has pegged the BMW 5 Series and Mercedes E-Class as rivals to their Genesis.

Overall, Hyundai aims to increase their market share on the continent from 3.4 percent currently to 5 percent by 2020. Though sales fell 5.5 percent last month, there are already 6 million vehicles on the road, with 70 percent under seven years of age. Customer retention also increased, moving from 36 percent in 2010 to 50 percent in the present, which benefits Hyundai in Europe according to regional head Allan Rushforth:

Working on loyalty is really fundamental to the economics of our business, and the success of our business in Europe. We’ve been a conquest brand to get to this point, but we’ve got to evolve and mature to balance retention and conquest in the future.

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35 Comments on “Hyundai To Challenge BMW, Mercedes With Genesis Sedan In Europe...”

  • avatar

    I think Hyundai is making a mistake by marketing the Genesis and Equus under the Hyundai brand. Either of those model names would have been great brand names for these two cars, plus the new 3-series sedan competitor that is rumored. I understand that it would cost too much to establish a separate dealer network for these cars, but they could have set up a separate area of the showroom at least. It’s like VW trying to sell a luxury sedan (Phaeton), under a mass market brand name. The Azera should be the top-of-the-line Hyundai model, with anything above badged under a different, upscale brand.

    • 0 avatar

      If internet rumors are to be believed, Hyundai has been debating this very thing internally recently. One estimate I saw put the tab at at least $200 Million to develop a new brand. Considering it only cost $500 Million to develop the latest generation of Genesis, that’s a decent sized sum.

      That being said, I believe it will happen eventually. As a Genesis owner, the range of service you get from different Hyundai dealers varies dramatically. Some get it, some don’t. It would be nice to eliminate this variance.

      • 0 avatar
        Kyree S. Williams

        A luxury brand may increase expectations of positive service experiences, but it does not automatically deliver them. Our local BMW/MINI dealership is ridiculous. Conversely, a plebeian brandscan provide excellent service experiences, even if it doesn’t have luxury products in its portfolio. Even up to the end, Saturn had some of the highest-ranked dealerships.

    • 0 avatar

      Actually, it’s the right idea since it enables them to undercut the Japanese (who, btw, are not faring well in the RWD luxury midsize sedan segment).

      When the time comes and they have a more extensive luxury line-up, they can launch a luxury sub-brand, which will keep the cost down.

      However, the Euro market is going to tougher for Hyundai to crack unless Hyundai starts to offer the Genesis with a diesel and 4 cyl powerplants, and as it is, the real volume is in the compact segment as well as smaller CUVs.

    • 0 avatar

      I think its takes right position because Overall, Hyundai aims to increase their market share on the continent from 3.4 percent currently to 5 percent by 2020. Though sales fell 5.5 percent last month, there are already 6 million vehicles on the road, with 70 percent under seven years of age. Customer retention also increased, moving from 36 percent in 2010 to 50 percent in the present.

      for review

    • 0 avatar

      I’m trying to think of a name for the luxury Hyundai which sounds sufficiently sophisticated and prestigious.

      Tosca (was former name of SK domestic Tiburon)

  • avatar
    schmitt trigger

    To be successful, Hyundai has to change the public’s perception and status about the marque.

    The key here are the words “perception and status”. With luxury brands those two are paramount.

    Will they succeed? Hard to say at this time…But Hyundai does have the deep pockets required for the long-term commitment. With emphasis on long term.

    • 0 avatar

      The luxury market is heterogeneous, so while a large segment of the population would agree about the need for status, other segments don’t.

      I posted the link on another thread but this is as good any:

  • avatar

    They are certainly competing on grill square footage.

    • 0 avatar

      Add LED-light playfulness to undermine that zombie-mouth’s seriousness and things can only go well. Wonder if they are going to sell any in the lion’s hall, Germany?

  • avatar

    That’s actually a pretty attractive car…I wouldn’t peg it as a Hyundai.

    They probably need to do what Toyota did with Lexus.

  • avatar

    I wouldn’t refuse a V8 whether it was regular or R-Type. But then I have a V8 RWD lust.

    • 0 avatar
      Kyree S. Williams

      I’m not certain, but I believe that Hyundai at some point dropped the 4.6-liter from the Genesis lineup, so that the only way to get a V8 *is* to opt for the 5.0-liter “R-Spec”; otherwise it’s the 3.8-liter V6.

      • 0 avatar

        Yup, you’re unable to get the 4.6 engine after 2012. And you’re unable to get the 5.0 after the R-Spec after 2012 as well (I have one of the rare non-rspec 5.0s).

  • avatar

    Diesel? or does it use an alternative fuel like electricity.

    ps. I assume it is not one of those weird unsalable alternative energy vehicles that run on what the Americans call gas

  • avatar

    As much as I like the Genesis, if you sell it in Europe without a diesel engine, it will flop. If Skoda can be referred to as “the thinking mans luxury car”, I don’t see why Hyundai can’t gain traction in Europe without creating a new sub-brand.

    • 0 avatar

      Or maybe the plan is to sell it in Europe to try to move the perception of the whole brand upmarket?

      • 0 avatar

        They tried that with the XG30, to much ridicule. I’d expect the Genesis to be worlds better. But a diesel is mandatory in Europe, and a V8 unnecessary.

        Even Volvo, which in marketing-limbo is premium, but not luxury, sold very few of its Yamaha-derived V8 on the old continent.

        Hyundai should avoid moving the Genesis on price alone, too, as that would undermine the whole nutch-upwards strategy.

  • avatar

    I had never even been close to one of these until the Toronto car show last week. Wow – did they ever nail the interior. Amazing for the price point (I am talking about the V6 here). Most comfortable rear seats I have ever sat in. Seriously, they are awesome.

    Trying to get my wife to consider one as her company car.

  • avatar

    Am I the only one who’s sick of LED ‘eyeliners?’

    • 0 avatar

      Nope. I can’t stand them or the 88 headlights on some Acuras. KC HiLites on the top of three quarter ton pickups are less gaudy.

    • 0 avatar

      I hated them from the beginning. They’re usually equipped on the sort of entry-level luxury cars driven by people who are too oblivious to notice they’ve been driving with one row of lights completely dead.

      And the thing that really bugs me – why do people pay more for a feature they themselves can never enjoy? You can’t see the lights from inside the car. When you walk away from the car, look over your shoulder and enjoy the sheetmetal, the lights are off. The people who buy these lights pay for them, but never see them. That’s just absurd.

  • avatar

    “Hyundai expects to sell 1,000 of the premium sedans”

    Whoever suggests creating a new brand and dealer network for 1000 cars is worthwhile, has no idea of what the car industry cost. Better sell them under Hyundai name (and use it as halo car) and take small losses, then creating a new brand, especially a luxury brand.

    People that “need” the BMW/Audi/Mercedes name wouldn’t buy a Hyundai, nor a new artificial brand that belongs to Hyundai. So those costumers are lost anyway. But there is the “Skoda = smart guy” group of people that would buy a Hyundai if it is competitive.

    At 1000 vehicles this is a money loss one way or another… it is to sell other Hyundai cars. Hope they fare better than VW with Phaeton….

  • avatar
    Kyree S. Williams

    In the American market, cars compete more on price than they do on size, construction or class. The outgoing Genesis, as it stands, does not compete with other midsized-luxury RWD cars like the BMW 5-Series, Lexus GS and Mercedes-Benz E-Class. The Genesis competes with entry-level luxury cars like the Acura TL, BMW 3-Series, Infiniti Q50 and Lexus ES…because buyers in those segments might cross-shop the Genesis. When, ultimately, the Genesis doesn’t do much to stand out beyond the RWD midsized mainstays, it probably isn’t going to conquest those buyers and will always be thought of as being of a lower class than one of those cars.

    • 0 avatar

      I agree with the premise of what you’re saying, and disagree with others. I think people who are not brand bigots will cross-shop the Genesis. Hyundai seems to trying to make the point that they’ve done their engineering homework. In some areas, they’re not going to match the Germans (BMW, Audi, and Mercedes seem to have the handling formula figured out). In other areas they can match it blow-for-blow.;_ylt=A0LEVxxYKw9ThHAA98xXNyoA;_ylu=X3oDMTE0NGxuYnNkBHNlYwNzcgRwb3MDMjEEY29sbwNiZjEEdnRpZANWSVAzMDRfMQ–

    • 0 avatar

      Otoh, buyers of compact sized sedans aren’t as apt to look at a midsize that is bordering on a full-size in interior room, much less FWD when they are looking for RWD (esp. RWD + V8).

  • avatar

    Hyundai/Kia styling department – Scissors and a glue stick.

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