Automotive News - July 21, 2008 - (Page 10) 10 • JULY 21, 2008 Hyundai: Genesis gives brand a new beginning in luxury Kathy Jackson kjackson@crain.com SANTA BARBARA, Calif. — The fullsized Azera sedan hasn’t done it, and neither has the mid-sized Veracruz crossover. But Hyundai won’t give up. Company officials believe they are closer than ever to shedding the brand’s inexpensive, small-car image. In June, Hyundai launched its most expensive car ever with the introduction of the Genesis sedan. The Genesis has a base price of $33,000 for the V-6 version and $38,000 for the V-8. With options, the V-6 goes as high as $40,000 and the V-8 for $42,000. The Genesis is Hyundai’s first rearwheel drive vehicle and its first to be powered by a V-8. It is also the company’s most expensive vehicle program: $760 million, including $260 million for the new V-8 engine. For Hyundai this is an important The Genesis sedan is Hyundai’s most expensive car ever, its first rwd and its first car powered by a V-8 engine. step. Executives are trying to raise the brand’s esteem and further distance it from sister brand Kia. “The average MSRP of cars sold in the U.S. this year is $32,800 with lots less technology than Genesis,” says John Krafcik, vice president of product planning at Hyundai Motor America. He says the Genesis is priced thousands of dollars less than a comparably equipped Infiniti, BMW, Lexus and Mercedes. The basics: The five-seat Genesis sits on a 115.6-inch wheelbase and is nearly 196 inches long. The base 3.8liter V-6 churns out 290 hp. The standard six-speed transmission also can be operated manually. Fuel economy is 18 mpg in the city and 27 on the highway. The 4.6-liter V-8 produces 375 hp and gets 17 mpg in the city and 25 on the highway. That’s a good combination of power and fuel efficiency when measured against major competitors. The 109.4 cubic feet of interior space is the same as that of a Mercedes-Benz S class. Notable features: The vehicle uses a new type of shock absorber, says Wendell Collins, ride and handling manager for the Genesis. The system, produced by ZF Sachs in Germany, uses two valving stacks within each shock. Collins says it is the first time that two stacks have been used on a passive damper. “That has been the key to providing the comfortable ride and handling,” Collins says. Standard features include a pushto-start button, electronic active head restraints, electronic stability control, traction control, eight airbags, ABS with electronic brake force distribution and Bluetooth. Options include Hyundai’s first rear backup camera, front and rear parking sensors, HID adaptive front lighting and a 528watt, 17-speaker Lexicon stereo system that Hyundai says is featured only in the Rolls-Royce Phantom. What Hyundai says: “We’ve done our product work,” Krafcik says. “All we’re doing is bringing people to the truth — the quality, residual value and safety technology.” Shortcomings and compromises: The Hyundai name, which has not been associated with vehicles in this price category. The market: Hyundai executives say the Genesis is equal to or better than such nameplates as the Lexus GS, Infiniti M, BMW 5 series and Mercedes E class. But they also know that luxury buyers do not connect with the brand. So the vehicles being targeted are the Chrysler 300, Pontiac G8, Lexus ES 350 and Cadillac CTS. Michael Deitz, Hyundai product planning manager for the cars, says the Genesis “is a natural progression” for the brand, since most Azera and Veracruz sales are for expensive trim lines. The Azera’s list price tops out at $29,245, and the Veracruz tops out at $36,445, including shipping. The primary customer is a collegeeducated male under age 55 with a household income of more than $100,000. The skinny: Hyundai wants to sell 30,000 of the sedans annually, but the premium market is shrinking because of high gasoline prices. Hyundai will have a hard time taking share.c How Genesis compares Hyundai executives say the Genesis will compete with the Pontiac G8. 2009 GENESIS 2009 PONTIAC G8 Wheelbase Length Width Height Curb weight Base engine Horsepower Torque, lbs.-ft. EPA mpg Base price* *Includes shipping 115.6 in. 195.9 in. 74.4 in. 58.1 in. 3,748 lbs. 3.8-liter V-6 290 @ 6,200 rpm 264 @ 4,500 rpm 18 city/27 hwy. $33,000 114.8 in. 196.1 in. 74.8 in. 57.7 in. 3,885 lbs. 3.6-liter V-6 256 @ 6,300 rpm 248 @ 2,100 rpm 17 city/25 hwy. $27,995 http://www.forcemediagroup.com http://www.forcemediagroup.com http://www.autonews.com http://www.autonews.com/buyGM100 http://www.autonews.com/buyGM100 http://www.guidepointsystems.com http://www.guidepointsystems.com
Table of Contents Feed for the Digital Edition of Automotive News - July 21, 2008 Automotive News - July 21, 2008 Gray sky, not blue; store values wilt Sour Chery: Bricklin suit claims corruption Germans in U.S. eye VW work S.C. warranty insurer faces shutdown LaNeve: Make do with less marketing money Tesla CAFE: 244 mpg Lincoln's big crossover Schaeffler goes shopping: Can supplier land Continental? Dealers cut, shift their ad spending Truck for the times? Oklahoma pickup gets 37 mpg For Chrysler sensations, glory days are gone Kuzak: Redone Fords must have best fuel economy The Fisher brothers: Quite a body of work Kazamai concept: Mazda's design heard round the world 3 years later, Mitsubishi, UAW resume contract talks Big-pickup production will plunge Nason's NHTSA: More rules, fewer penalties A vote for the Volt Hyundai: Genesis gives brand a new beginning in luxury GM may survive; to thrive, it needs hot products GM just bought some time Green can be cool; it's up to the maker Why don't we drive diesels in the U.S.? Hooray! Joint effort stops airbag deaths All-Stars: Look beyond top brass Leno was right about U.S. cars Toyota recalls Siennas, disputes safety issue This time, the industry embraces connectivity Telematics connects with consumers Telematics gets no respect — the word, that is Tapping mapping for an extra eye on the road Drivers can check CO2 'tire print' Pay As You Drive insurance tracks cars to trim costs Subscribers, sponsors may fund telematics services Big-truck sales fall 14% in June Continental plant to make brakes Lear to shut Mo. seating plant Modine shifts production to Ky. Linamar buys Visteon plant Picture this Lexus revamps 'Taste' marketing extravaganzas Suzuki hires new auto ad agency Fisker turns to Finnish firm to make first hybrids American Suzuki gets new president Canada sales slip 5.6% in June Dealers A big fuel saver: Easy-rolling tires (but watch braking) MPG now! Automakers race to boost efficiency Products — not entire brands — likely to be ditched Pared ad budget is back on the chopping block GM goal: Big small-car profits Congress mulls arbitration bill 2009 Mazda6 price: $19,220 Copart files antitrust suit Denton's out, Leuliette's in as Dura CEO June output falls 13.8% Dodge Challenger: Not quite a sellout Magazine is raided in Renault espionage case Ya gotta believe: Dealers buy GM stock States of the auto industry Will the big guns pull the trigger? Lear a year later: Icahn's offer in hindsight Midcourse correction in Toyota's global sales outlook Chattanooga: A good site better Automotive News - July 21, 2008 Automotive News - July 21, 2008 - (Page Intro) Automotive News - July 21, 2008 - Gray sky, not blue; store values wilt (Page 1) Automotive News - July 21, 2008 - Gray sky, not blue; store values wilt (Page 2) Automotive News - July 21, 2008 - Lincoln's big crossover (Page 3) Automotive News - July 21, 2008 - Truck for the times? Oklahoma pickup gets 37 mpg (Page 4) Automotive News - July 21, 2008 - Truck for the times? Oklahoma pickup gets 37 mpg (Page 5) Automotive News - July 21, 2008 - 3 years later, Mitsubishi, UAW resume contract talks (Page 6) Automotive News - July 21, 2008 - 3 years later, Mitsubishi, UAW resume contract talks (Page 7) Automotive News - July 21, 2008 - A vote for the Volt (Page 8) Automotive News - July 21, 2008 - A vote for the Volt (Page 9) Automotive News - July 21, 2008 - Hyundai: Genesis gives brand a new beginning in luxury (Page 10) Automotive News - July 21, 2008 - Hyundai: Genesis gives brand a new beginning in luxury (Page 11) Automotive News - July 21, 2008 - Why don't we drive diesels in the U.S.? (Page 12) Automotive News - July 21, 2008 - Why don't we drive diesels in the U.S.? (Page 13) Automotive News - July 21, 2008 - Leno was right about U.S. cars (Page 14) Automotive News - July 21, 2008 - Leno was right about U.S. cars (Page 15) Automotive News - July 21, 2008 - Toyota recalls Siennas, disputes safety issue (Page 16) Automotive News - July 21, 2008 - Toyota recalls Siennas, disputes safety issue (Page GM1) Automotive News - July 21, 2008 - Toyota recalls Siennas, disputes safety issue (Page GM2) Automotive News - July 21, 2008 - Telematics connects with consumers (Page 17) Automotive News - July 21, 2008 - Telematics connects with consumers (Page 18) Automotive News - July 21, 2008 - Telematics gets no respect — the word, that is (Page 19) Automotive News - July 21, 2008 - Tapping mapping for an extra eye on the road (Page 20) Automotive News - July 21, 2008 - Pay As You Drive insurance tracks cars to trim costs (Page 20A) Automotive News - July 21, 2008 - Pay As You Drive insurance tracks cars to trim costs (Page 20B) Automotive News - July 21, 2008 - Pay As You Drive insurance tracks cars to trim costs (Page 20C) Automotive News - July 21, 2008 - Subscribers, sponsors may fund telematics services (Page 20D) Automotive News - July 21, 2008 - Subscribers, sponsors may fund telematics services (Page 21) Automotive News - July 21, 2008 - Linamar buys Visteon plant (Page 22) Automotive News - July 21, 2008 - Picture this (Page 23) Automotive News - July 21, 2008 - Fisker turns to Finnish firm to make first hybrids (Page 24) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 25) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 26) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 27) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 28) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 29) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 30) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 31) Automotive News - July 21, 2008 - Dealers (Page 32) Automotive News - July 21, 2008 - MPG now! Automakers race to boost efficiency (Page 33) Automotive News - July 21, 2008 - GM goal: Big small-car profits (Page 34) Automotive News - July 21, 2008 - Denton's out, Leuliette's in as Dura CEO (Page 35) Automotive News - July 21, 2008 - Denton's out, Leuliette's in as Dura CEO (Page 36) Automotive News - July 21, 2008 - June output falls 13.8% (Page 37) Automotive News - July 21, 2008 - Chattanooga: A good site better (Page 38) Automotive News - July 21, 2008 - Chattanooga: A good site better (Page 39) Automotive News - July 21, 2008 - Chattanooga: A good site better (Page 40)
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