Report: Hyundai To Spin Off Genesis-branded Luxury Line
Reuters reported Tuesday that Hyundai will spin off Genesis as a global premium brand to compete with German automakers such as BMW, Mercedes and Audi. The news agency quoted sources “close” to the company and said an announcement could come as early as Tuesday.
Hyundai didn’t comment on the report.
According to Reuters, Hyundai would launch Genesis with the Genesis sedan — and possibly coupe — and the Equus sedan. Genesis would add a mid-size SUV around 2019.
According to the sources, Genesis would utilize Hyundai’s dealer network and be sold alongside Hyundai models — at least for now.
“A small line of upscale products is going to be sold under the Genesis brand name. It’s not a physically separated brand with its own channel,” the source told Reuters.
Hyundai has toed the waters with spinning off its own luxury brand before. Analysts say that it may take years before a dedicated luxury line would become profitable. According to reports, Toyota spent more than $5 billion to start Lexus, which didn’t make a profit for a decade.
The luxury car market is much bigger than it was in 1989 and more profitable.
I'll buy one if they include a Phil Collins stereo system.
I read that they were calling the current Genesis sedan the G80. So, they've basically taken infiniti's naming system and Spinal Tapped it. The Infiniti naming system was already a spinal tapped Audi naming system. Screams luxury to me!
This was their original plan from the beginning. Took 11 years to achieve since original conception of the "Genesis" brand which is currently only in sedan and coupe form. The badges are different in their domestic market, we'll see how this plays.
It is funny that no one mentions Tesla as an example of luxury bran which came from nowhere and sells well at prices comparable to S class. Apparently all those faux Asian luxury brands cannot measure up against Tesla. The fact that journos talk about Germans are trying hard to come up with "Tesla killer" tells you something, namely that not Tesla tries to emulate Germans but Germans try to ape Tesla.