Automotive News - March 10, 2008 - (Page 27)

MARCH 10, 2008 • 27 simple: More — now Genesis sedan’s assignment: Boost image of all Hyundais Gary Anglebrandt autonews@crain.com SEOUL — For Hyundai, the Genesis luxury sports sedan is more than a step upscale. The summer launch of a new flagship is critical to the automaker’s efforts to reach a higher orbit of success, even though Hyundai dropped initial plans to sell it under a new luxury brand. With an export target of just 20,000 units, it’s all about the halo effect. “The Genesis will upgrade our image” across a range of buyers, says Frank Shin. “Then they can believe in the Veracruz, Sonata and so on.” Shin, who recently headed Hyundai’s Washington office, moved last month to a position with one of the company’s parts making affiliates. Action Events are generating RECORD-BREAK t now? dealers across the country. What’s hot righ ARE YOURS? ING RESULTS for Chevrolet Dealer - Lakeland, FL “Sold 40 cars during the CarFax Clearance, that’s 25 MORE THAN AVERAGE, and the GROSSES WERE HUGE! We’re making this event part of our used car marketing plan for the entire year.” Nissan Dealer - Phoenix, AZ “Not only was this a great sale, we saw the BEST CREDIT SCORES EVER plus we grossed an average of $2000 MORE PER UNIT and we took in better trades.” Dodge Dealer - Oklahoma City, OK “We had HIGHER GROSSES and BETTER QUALITY TRAFFIC with this event.” www.ActionIM.com Hyundai hopes buyers will prefer the 2009 Genesis, top, over the BMW 350i, bottom left, and the Lexus ES 350, bottom right. separate brand to accommodate the Genesis but chose not to — for now. “We discussed quite a lot whether to launch a new brand or not, but we decided to enhance the Hyundai brand image and make our dealers more profitable,” Shin says. Lee Hyun-Soon, head of corporate research and development at Hyundai-Kia Group, says the company rejected a separate brand because of the marketing expense. If successful, the Genesis could pave the way for a separate luxury brand for Hyundai, perhaps in five years. Without one, things could become awkward for dealers, says Suh Sung-Moon, an auto analyst at Korea Investment & Securities. “A separate brand could be the solution,” Suh says. “It’s silly to have a $30,000 to $40,000 model and a $12,000 model in the same showroom.” ury V-8 in the 1990s. But the 1997-98 Asian financial crisis, which hit South Korea badly, got in the way. “We lost four or five years,” Lee says. “Otherwise, we could have had this car much earlier.” At the least, Hyundai hopes to use the Genesis to raise its image to the level of Toyota or Honda, says Anthony Moon of Nomura Securities. “Hyundai internally thinks they are just as good as the Japanese,” he says. “They think, ‘Why do we have to sell at a 20 percent discount?’ ” c ACTION INTEGRATED MARKETING PROVIDES FULL-SERVICE & EVENT MARKETING SOLUTIONS FOR DEALERSHIPS NATIONWIDE Get More Information Online At Benchmarking Germans Hyundai invites comparisons to German automakers. In December it brought reporters to a test track in Korea to drive the Genesis, Mercedes E350 and BMW 530i. Korean TV commercials show a Genesis smashing head-on into an Audi in a James Bond-like testing center. “Genesis symbolizes our determination to enter the highly competitive arena of luxury cars now dominated by the Europeans,” Hyundai Chairman Chung Mong-Koo said in a statement at the car’s launch in Korea. “Genesis will pave the way forward for our leap into the global market.” In fact, Hyundai sees its real targets as Japanese and U.S. mid-range luxury cars. The Lexus GS and Infiniti M are primary competitors. Genesis buyers probably will cross-shop the Chrysler 300, Lexus ES and Cadillac CTS. Hyundai spent about $600 million over four years developing the Genesis. It unveiled a concept version at the 2007 New York auto show. For 2008, Hyundai has set a domestic sales target of 35,000 units and an export target of 20,000 units. For 2009, the export goal is 45,000 units. The main export markets for the Genesis are North America and China. Hyundai considered launching a 800.478.8818 EXT. #152 Reach In-Market Buyers NOTICE OF FAIR SOLICITATION Offered to Dealers/Advertising Associations for the FIRST TIME, the DriverSource™ program offers advertising in State DMV Registration Renewal Notices providing: Miami, FL If Toyota can go upscale … Hyundai has been thinking about a luxury car since the first Lexus LS 400 reached American shores almost 20 years ago. “If Toyota can do it, why not us?” r&d czar Lee recalls thinking at the time. “Maybe some day, we can also do it.” Hyundai planned to develop a lux- Hyundai goes global In 1997, Hyundai opened a plant in Turkey, its first overseas foray since a failed factory in Canada. Then it shifted into high gear. From 1998 to 2005, Hyundai added capacity to build 1 million more vehicles annually in India, China and the United States. Now it is expanding several of those plants and adding new ones elsewhere. This map shows Hyundai’s assembly plants outside Korea. Zilina, Czech Republic Montgomery, Ala. St. Petersburg, Russia Istanbul, Turkey Tamil Nadu, India Beijing, China Increased Showroom Trafﬁc and Sales High accuracy in targeting buyers Strong ROI Performance High Open Rate Segment/Category Exclusivity Currently the following DMAs are available: Boston, MA (State of Massachusetts Only) New York, NY (State of New York Only) Buffalo, NY Albany/Schenectady/Troy, NY Miami, FL ® New York, NY A Pitney Bowes Company For information on advertising Contact DriverSource by April ™ 4, 2008 ★ = Existing plant ■ = New plant ● = Expansion of existing plant Boston, MA 1-866-456-7860 DriverSourceSales@pb.com @ Note: Due to Category and Segment Exclusivity not all Segments and DMAs may be available. Imagitas may cancel any part of this solicitation at any time if Imagitas considers such action is in Imagitas’ and/or its partners’ best interest. http://www.ActionIM.com http://www.ActionIM.com http://www.autonewschina.com

Table of Contents Feed for the Digital Edition of Automotive News - March 10, 2008

Cheaper small cars are part of VW's U.S. plan Ford offers to buy back 81 stores As dollar dives, automakers juggle global strategies Jaguar-Land Rover deal will be signed within weeks GM Planworks chief leaves Jacoby cites dealer role in VW makeover Slim fast Nissan: Electric car to get here in 2010 Family honor Suddenly, Arkona's a key software player Chrysler may build vehicles in Russia Congress may ban mandated arbitration Volvo signs dealers willing to exit Breeding a hybrid? Prius could be a brand Honda adds benefits for same-sex partners Top China execs to speak at conference Manual for Challenger waits until '09 Ex-Sonic president: Gulf States raided Sonic GM, American Axle: Ties that bind Boardroom coup ousts Chamco executives False data imperil all auto financing Dealers would suffer if Calif. gets its way GM, Ford should bring Euro cars here Fresh ideas are fine, but Chrysler must be wary We need that 10% of useful inventions Safety options: Let consumers decide Tire monitors are full of problems Germany's labor setup just doesn't work Alabama adding auto jobs more slowly Engineer Banks strives to sip fuel, burn rubber Toyota Financial takes risks to aid dealers Honda captive beefs up dealer training in leasing NADA releases 2 subprime guides ADP develops e-sales brochure Credit unions' share of auto loans declines Upgraded auction ID carries a fee Dealers At hard-charging Hyundai, the plan is simple: More — now Genesis sedan's assignment: Boost image of all Hyundais Allied will supply sensing systems to Magna Haldex opens Mexico plant Behr gets Nano pact How Tupelo talked Toyota into building a plant there Infiniti FX showcases new Nissan technology Ford may consider hatchback for U.S. Audi to launch A4 sedan, wagon together BMW M3 convertible Saab hybrid concept has solar roof panels Toyota could bring tiny 4-seater to U.S. Hummer to push H3 pickup's usefulness New look for the SL Tiny Nano makes big waves GM's Opel unveils small hatchback that could become part of Saturn line Who says Americans don't want hatchbacks? 9-3 will dominate Saab marketing Lutz: Green takes greenbacks Leap year added to Feb. misery 9 U.S. Toyota executives will retire Ford gives employees $1,000 bonus Denso picks new N.A. CEO GM extends buyout offers CAW OKs TRW pact Lampert ups AutoNation stake Sagging Chrysler boosts spiffs Feb. output is up slightly Buick offers the Cadillac of caddies GM's board: The royal robe fits Fritz Be it metal or men, Geneva all about style Raising the roof (price) Italian cops bust Fiero-aris Consumer Reports' verdict on Chrysler products: Eeeee-uuw!

Automotive News - March 10, 2008

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