Best New Car 2015 – Image via images.autotrader.com
Best New Car 2015 – Genesis is a young and still-plush luxury brand, with a complicated history, which is currently undergoing major changes.
The new upscale model from Korean car manufacturer, Hyundai, will soon begin launching the mid-2019 highly-priced G70. The sports sedan, which starts around $ 32,000, competes head-to-head with other entry-level luxury models, including the Mercedes C class or BMW 3 series.
Best New Car 2015
Consumer Reports ranks it’s top automotive brand in February. This then surpassed the JD Power Early Quality survey in June. AutoPacific industry researchers, also that month, rated the highest Genesis sedans in vehicle satisfaction.
But sales have dropped 50 percent over the past six months as brands build new dealer networks in the US and try to differentiate themselves from competitors and stablematnya, Hyundai and Kia.
To make things heavier, Genesis tried to sell the sedan in a market that was leaning toward the SUV.
With Genesis, Hyundai plays a long game. A very long game.
Within a month, Genesis will begin to open a new network of standalone dealers, says Erwin Raphael, general manager of Genesis North America.
Genesis has long wanted about 100 separate stores to distinguish brands from Hyundai. But it’s clustered with many in the Hyundai 840 network of dealers across the US, many of them upset they may not be able to continue selling Genesis vehicles.
Finally, it seems to have come to a solution. Every dealer can now choose between converting to selling Genesis, building a separate store or receiving what Raphael says is a generous purchase offer.
The problem is that nowadays companies have to stop production and postpone brand marketing. The tight supplies have killed the sale, Raphael said.
“We do not care about our sales at all,” he said. “This is the process we must go through to build a stronger foundation for Genesis.”
The G70 will start hitting dealerships in August, shortly after the announcement.
The G70 is the third vehicle of Genesis, and this is the first fully developed by a separate Genesis group inside Hyundai. It has drawn comparisons with smaller German sport sedans, such as the BMW 3 Series and Audi A4.
Senior analyst Kelley Blue Book Rebecca Lindland drives a car in Korea by the end of 2017.
“Very impressive,” Lindland said. “I think people will be fascinated by it.The challenge is to get people to consider brands and vehicles.”
Only about 3 percent or 4 percent of consumers who shop at Kelley Blue Book, for example, are looking at the brand, he says. That contrasts with BMW, which attracts about 30 percent of Kelley Blue Book buyers.
The cheaper Genesis sister brands, Hyundai and Kia, attract about 20 percent and 15 percent, respectively, from buyers on the site.
“I think the G70 can easily take the 3 Series,” he said. “You just have to be on that list of considerations.”
Raphael says the lack of awareness is the brand’s biggest challenge at the moment, but it does not make sense to focus on building brand awareness as it passes through transitions with its dealer network. He said even their own data has shown that only 6 percent of buyers are aware of the brand.
Raphael says, Genesis plans to deliver a wide net for new customers, looking beyond traditional luxury car buyers.
“Even when we see customers who can afford luxury vehicles, 83 percent of them do not buy a luxury vehicle at all,” he said. “So there is no need to fight for 17 percent who buy luxury vehicles.”
Genesis also compete in a segment that continues to shrink: sedan.
Cars accounted for 56 percent of all premium vehicles sold in the United States in 2011, according to IHS Markit. By 2017, that share shrank to about 40 percent. SUVs do almost exactly the opposite in the same period, up from 40 percent in 2011 to 57 percent by 2017.
This brand has announced it will make two different SUV vehicles, but has not released details about them.
“For better or worse, they started a sedan product,” says Brinley. “You can get faster volume with SUV and crossover.”
At the same time, getting the volume quickly is not as important as getting in touch with customers, because the company is trying to focus on the dealership, he said.
And the switch to the SUV is faster and dramatic than many people think in the industry, he added. And the pendulum could swing in another direction back toward the sedan, he said.
Furthermore, if Genesis really exists in it for the long term, it has to build a full line of cars no matter what they start.