Sens4Miles

Hyundai's strategy paying off

Detroit's automakers have lost their mojo and not even some of the stellar products they have today are doing much to bring it home.

Hyundai, it appears, has found it.

The South Korean automaker once known for "cheap and cheerful" economy cars has kicked its game up a few notches and even those who chuckled at the thought of owning one now are paying attention.

It's been hard not to with the massive ad campaign the company is waging.


Ad campaign resonates

Think Sunday. As in Super Bowl Sunday, the day its newest television ads hit the airwaves and took direct aim at luxury carmakers, particularly Lexus and BMW. The spot features execs from other companies screaming about newspaper stories featuring Hyundai's luxury sedan, the Genesis, being named North American Car of the Year at the Detroit auto show.

Having not driven the Genesis yet, I can't tell you if it compares to those other rides, but I can tell you about the commercial -- something that I can't do for the latest BMW or Lexus commercial hot spot. Similarly, I can tell you thanks to its ads, that Hyundai is offering to buy back its cars from people who lose their job (after they've made two payments). Rarely do 30-second spots interrupting a ballgame resonate with me -- particularly car commercials, which historically are among the least memorable.

But Hyundai has done it.


Company thinks ahead

And it's not by accident.

"It's definitely a strategy we're working on," said Dan Bedore, a spokesman for Hyundai Motor America. "... this is not the same company from the 1986 Excel."

Hyundai scored big time during the Olympics, too. The company, figuring the world would be watching, bought the first TV ad space available after Michael Phelps eighth race. Sounds like simple planning, but it's bigger than that. Companies have to be thinking ahead and Hyundai has been doing just that.

Sure, Hyundai still has a long way to go but it is chipping away at new audiences, particularly those that typically don't bag their own groceries or drink beer from a can. Hyundai's commercial during the Oscars resulted in a 27 percent surge in its Web site traffic, automotive research Web site Edmunds.com said in a report this week.

Hyundai's sales increased 14 percent in January, a far cry from the drop of nearly 30 percent or worse from most other major automakers, and they're still swinging for the fences.

That's as it should be. Strike when the iron is hot. Capitalize on your competitors weaknesses. Take what you can get.

Even if that means part of the strategy is explaining how to say the company name -- Hyundai, as in Sunday.

http://www.detnews.com/apps/pbcs.dll...902250370/1148

ffpowerLN

iTrader: (1)

Hyundai is getting there.

I've driven the Genesis and can say that it offers 90% of the GS/5er/E experience with about 75% of the price so it is definitely a bargain without the badge factor. It is also better and priced way more reasonable than anything Acura has to offer...

In order to be viewed as a luxury car maker in the US I still think that Hyundai need to launch a separate luxury brand and dealership network , this country is just way too image conscious.

Epik151

Not just Hyundai but KIA too. Have you guys seen the new Soul, Forte, and the Proceed concept?

Much more radical and upscale designs than Hyundai actually.

sirCharles

oh no, not Kia too

joe80

yes, kia too.




new sorrento rendering

designed by the former Audi designer who designed Audi for about 22 years.

joe80

genesis > GS

IMO

let's face it, GS has nothing on genesis. GS is the weakest link in lexus lineup. lexus basically fuvked it up on GS.

http://www.motortrend.com/roadtests/...est/index.html


Not only does the 4.6-liter Tau feature advanced technology and materials-aluminum block and heads, stainless-steel exhaust manifold, iridium double-tipped spark plugs, two-step variable induction system, and dual continuously variable valve timing-but it also boasts a green ULEV-II emission rating and more horsepower per liter (82) than all of the aforementioned competitors. Unfortunately for the Genesis's rivals, the outlook doesn't appear any rosier. "We already have a 5.0-liter direct-injected version on the horizon that'll produce well over 400 horses," says Krafcik, "and we're considering forced-induction as well."


"The Genesis costs barely more than the original 1990 LS 400." If Lexus isn't nervous, it should be. Sure, the Genesis lacks some of the exquisiteness and attention to detail of the LS, whose interior stitching and real wood trim, for instance, are a step above, but the Lexus costs nearly twice as much. That's a huge discrepancy in price for a minor disparity in excellence-ideal for Hyundai, not so much for Lexus. Still, prospective Lexus buyers aren't apt to suddenly cross-shop the Genesis, although they should, given its near-identical driving experience and projected three-year residual value, which, according to Automotive Lease Guide, ranks above that of the BMW 550i, Infiniti M45, Lexus GS 460, and Mercedes E550.


In fact, with 0-to-60 and quarter-mile runs of 5.5 seconds and 14.0 at 103.7 mph, respectively, the Genesis is quicker than most of the vehicles within its competitive and image sets, including the Infiniti M45, the Lexus GS 460, and the Hemi-fied 300C. The only quicker automatic-equipped sedans that we've tested and Hyundai targeted are the 6.0-liter Pontiac G8 GT (5.3, 13.8 at 102.3) and the 5.5-liter Mercedes-Benz E550 (4.8, 13.4 at 105.3). Not bad for a Hyundai? Not bad for any V-8-powered four-door.


Yes, the Hyundai is devoid of the BMW's ultra-sharp steering, flat cornering, and immense grip -- if the two participated in "Dancing with the Stars," the BMW would be the seasoned instructor, the Hyundai the awkward student. On the flip side, the Genesis is more serene and relaxed for everyday duties, able to eschew the Bimmer's busy, stiff ride and sometimes nervous road manners. This is not to say the Hyundai doesn't relish a twisty road. With a 53/47 front/rear weight distribution, the Genesis delivers excellent balance and impressive grip (certainly considering it doesn't wear summer tires), circling the figure eight in 27.4 seconds at 0.64 g and the skidpad at 0.87 g.


Perhaps the most striking similarity between the Genesis and the E550 is the sense of solidity. Shut the doors, and the body emits nary a quiver. Aggressively accelerate through a sharp curve, and the structure avoids flex like a Kevlar baseball bat.


While the V-8-motivated 4.6 is the considerably quicker of the two, the 3.8 is no slouch, with 290 horsepower and 264 pound-feet serving up 0 to 60 in 6.3 seconds and the quarter mile in 14.8 at 95.1 mph. For context, our long-term 2008 Cadillac CTS 3.6L DI, Motor Trend's 2008 Car of the Year, provides similar stats -- 304 horsepower, 273 pound-feet, 0 to 60 in 6.3, the quarter mile in 14.8 at 95.6-but carries a base price of over $3000 more. Plus, the Genesis 3.8 sips less fuel than the direct-injected Caddy -- 18/27 versus 17/26.


http://www.automobilemag.com/reviews...son/index.html
-not much praise for GS.

This isn't true for the Hyundai's rock-solid interior, which is the richest of the group both in appearance and feel. Its swooping, two-tone, leather-covered dashboard mimics that of an S-class and is refreshingly clean and uncluttered. Its perforated leather seats are the warmest (visually - the seat cooler on the driver's seat will render your unmentionables frostbitten) and most inviting of the group, and the wood steering-wheel rim looks as though it were lifted straight out of a posh LS460. With the key comfortably in your pocket, press the START button, and the Hyundai's white-on-black gauges perform the same startup ritual we've become accustomed to in every Lexus, with luminescent needles glowing brightly as the numeric markings gradually become visible. Actually, the entire experience from behind the wheel of the Genesis leads you to believe you're in a Lexus.

-only negative on hyundai's interior is the silver plastic. material is good, but the color choice is just bad. silver sucks on interior.

joe80

http://blogs.motortrend.com/6459838/...ing/index.html

2009 Hyundai Genesis: A Car Detroit Can Now Only Dream of Building?

The Genesis is a great car. And after a week at the wheel of a 4.6-liter V-8, I'm convinced it's only a few developmental tweaks away from being truly outstanding. My tester had fewer than 1000 miles on the odo, yet the engine felt crisp and smooth, and delivered impressive fuel economy -- 22 to 23mpg cruising at 80mph or so on the freeway. Overall noise levels are low, the equipment levels high, and the cabin oozes quietly understated quality.


.....The shocking reality dawned on me during the week: the Hyundai Genesis is a car that's perhaps now beyond the capability of GM, Ford, or Chrysler. All three, of course, are broke or mortgaged to the hilt, and fighting for survival. Large, rear drive luxury cars are therefore a low priority: GM has put the rear drive Cadillac STS/DTS replacement on hold, and axed the program to replace the quad-cam Northstar V-8; Ford's large rear drive sedans are built on a platform that was old-fashioned when it was introduced in 1978, and has stopped work on its new global rear drive architecture; Chrysler is eking out hand-me-down architecture from Mercedes-Benz.

But even if they had the money, all three Detroit automakers have effectively been out of the large rear drive luxury sedan business for so long now, I'm not sure any of them could build a car that would be demonstrably better than the Genesis in terms of smoothness, refinement, performance, or efficiency. And while a big Caddy or Lincoln or Chrysler may look more attractive than the Hyundai -- after all, Detroit still has some of the best designers in the business -- I doubt any of them would be better built, either.

bitkahuna

iTrader: (20)

another perspective...

a friend who is very connected to the auto industry told me Hyundai dealers are basically very upset with Hyundai and get the worst margins in the industry. dunno if it's true, but hyundai will ultimately have a hard time if their dealers are unhappy.

but personally i believe this horrible economy is going to change the car industry forever. i think dealers will ALL be operating on thinner margins over time AND i believe dealers will have fewer straight salespeople as people become able to order a new configured car on the internet and maybe pick it up at the dealer or have it delivered to them.

so hyundai may be well positions to become a MAJOR player in the next few years.

but storm clouds are on the horizon for ALL brands currently sold in the u.s. - from, of course, China. there will be a BUNCH of brands here, or licensed and sold under existing brands, in the next few years. and it's only a matter of time before wal*mart sells cars - hey costco can already broker a sale.

LexBob2

All of the awards and accolades are no doubt deserved, but why aren't they translating into better sales vs. other new competitive models (Maxima, MKS, TL etc.)? I don't understand it.