The rear wheel-drive Genesis sedan is Hyundai's first foray into the luxury car market. We brought you in-person pictures back in March at the NY Auto Show. Now, Hyundai has released the pricing info. For $33k you can get yourself a V6 model with a very healthy 290 horses and six speed autobox packing the usual luxury toys like dual climate control and heated leather seats (ahem, BMW, leatherette). Jumping to the big boy 4.6-liter V8 will cost you another $5k. In addition to the 375 horsepower monster up front, you get a better six speed autobox (ZF this time around), "ultra-premium" leather seats, leather all over the dash, a higher end sound system, and more useless but marketing-necessary toys. Three ways to look at these prices: first, the V6 model is right on point with cars like the Infiniti G35, although you can guarantee they will drive 100 percent differently. And we can't leave out the $32k completely unluxury Pontiac G8 GT. Alternatively, consider the value of the Genesis over a BMW 5-Series, whose 230 hp 528i starts at over $44k. Finally, just for kicks, let's look at things in historical perspective: in 1990, the Lexus LS400 had a sticker of $35k.
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The price of the 5 Series is irrevelent, I doubt any potential BMW or Mercedes buyer will even consider this.
I do see it stealing sales from the Maxima, Avalon, MKZ, and 300C big time. The budget/sensibly priced luxury cars.
I say: Well done Hyundai. I Think it will sell very well.
…Honestly, I just can’t see spending that much on a Hyundai…
Call me superficial, or shallow, or whatever, but that’s just the way I look at it. If I had that kind of money to spend on a car, there would be many other alternatives of similar body styles and drivetrains I would go for first. In my opinion, I think it’s too much of a leap for Hyundai.
However, I want them to prove me wrong. Let the non-fleet sales numbers speak for themselves…
Honestly, I just can’t see spending that much on a Hyundai
I don’t think that you’re alone. It’s a mistake to sell this branded as a Hyundai. If they are serious about selling luxury cars, then they need a luxury brand.
It will take a few sales away from the top-end Accords and the like, but I doubt that it will inspire more than a handful of Lexus and BMW buyers to defect. There is no cachet value to the brand, the dealers aren’t equipped to provide the level of customer care needed to create loyal buyers, and the cars will depreciate like rocks, making them a bad value for anyone who would want to lease it.
Hyundai wants too much, too fast. They want to do what Toyota did, but in ten years instead of 40.
I think the pricing is spot-on. I was worried they were going to run into Phaeton syndrome by pricing it too high, even if it was worth every penny. At 38k this car will probably sell very well to intelligent consumers.
I added this pricing to TrueDelta’s database last night. Just base prices and features so far; option package pricing hasn’t been released.
As soon as TTAC’s techs get their server sorted out, you’ll be able to accurately compare the Genesis to other cars here.
Compared the Genesis at TrueDelta, and the V8 is over $12,000 less than an Infiniti M45, which I believe is the least expensive direct competitor. And it’s about $26,000 less than a similarly equipped BMW 550i.
http://www.truedelta.com/prices.php
Genesis has an excellent value proposition. Justin has noted that 528i cost $44K with 230 hp. Most of the Germany luxo cars are like this. Yes, they probably can do better stats in terms of 0-60 mph, slalom, or other tests but not by much. So far, Cialis Auto Journalists didn’t hate Genesis during their first drives; maybe they took half pill instead of the whole pill. Maybe, they were saving the half for another car. Maybe Genesis wasn’t worth the whole pill. But regardless, they didn’t hate it.
Also, $40K luxo car isn’t that much. Remember, 1995 Lexus ES300 was MSRP $31K. If you adjust MSRP by using CPI, $40K isn’t that bad. Also, you are getting 4.6L versus 3.0L. You get whole a lot of equipment than ES300 or ES350. If you fully equip ES350, you can easily go $40K. Other hand, Hyundai Genesis has pricing like Acura where you get few options but get a lot… and it may top $40K after rebates/dealer incentives. So, from the pure value position, Genesis is a real value. Like the Azera, Vera Cruz, and Sonata… Even Elantra… I think Genesis is and will very competitive.
From Marketing Stand Point, Hyundai could have problem. I like the idea that I can take my car into a Lexus dealership for car service and I get a loaner car. I come back and everything is ready to go… I like this idea… However, there are people who buy into high priced 300C, Avalons, Buicks, Subaru, etc…
But there is another point I want to make. When I drive my car and let’s say I am backing my car. I can’t see the back side of the car, and I wonder… ‘It would be nice to able to see the backside’ I drive during the summer… wouldn’t it be nice to have a cooling seats? I mean, these thoughts go on and on. And many of the features are on Genesis for under $40K. Order for me to get some of these features with other cars, I have to spend a lot more money.
Phaeton != Genesis
$80K versus $40K. No more Phaeton comparison to Genesis.
1995 ES300 MSRP:
[http://www.motortrend.com/cars/1995/lexus/es300/comparisons/trim.html]
[http://www.autos.com/autos/car/luxury/1995/lexus/es_300/base]
2008 ES 350 MSRP:
[http://www.edmunds.com/new/2008/lexus/es350/100903612/options.html?action=1&x=34&y=11]
@Pch101:
The problem with creating a new luxury brand is that you have to continually feed it with new product and dealer support, which would have exponentially increased the cost of launching the Genesis. Ask Mercury what its like not getting a lot of new product.
The Mazda Millenia was originally going to be for a new Mazda luxury brand that never materialized, and I’m willing to bet that Mazda is glad they didn’t invest in it, as they just killed the Millenia without having to renege on dealer contracts (which is costly, ask GM about killing Oldsmobile).
It takes time to change people’s perceptions, but they can be changed. Compare the image of Audi today to 1980. I’m not saying Hyundai will become Audi anytime, but track their [Hyundai’s] improvement from the Excel to the current Sonata you can see they are improving consumers perceptions. Compare to Mercury again.
Chrysler’s brand-cachet was almost as non-existant as Hyundai’s when it launched the 300/300C four years ago (man, time has flown), yet Chrysler had no problems selling $30K-$45K 300 Limiteds and 300Cs/SRT8s for over a year before the incentives crept up.
Still, though, I’d still find it easier to plop down $38,000 on a Chrysler 300C than for a Hyundai Genesis. And with discounting, the 300C undercuts the price of the V6 Genesis, so Hyundai’s going to have a hard go at the market.
The problem with creating a new luxury brand is that you have to continually feed it with new product and dealer support, which would have exponentially increased the cost of launching the Genesis.
Of course. But it also deepens buyer loyalty, allows for higher prices, and preserves residuals, which explains why Toyota wisely chose to create Lexus instead of just trying to sell more expensive Toyotas to Americans. A Toyota LS400 would have been far less successful than it proved to be as a Lexus.
This price point is too high for the standard car category to support. If the goal was to sell a lot of these, doing this almost guarantees that it isn’t going to work.
The best thing about the Genesis, though, is that it makes the Sonata seem more competitive. If the goal is to sell more Sonatas, then the Genesis should provide a bit of a halo to give it more cred. But that turns the Genesis into a low volume loss leader, which is a different strategy from going after the German car crowd.
Update: I found pricing for the option packages over at GenesisOwners.com. So that data is now in there. I believe this makes TrueDelta the first site where you can configure–much less thoroughly compare–the Genesis.
http://www.truedelta.com/prices.php
I like the Lexus comparison, I see the Genesis in a similar light. We’ll see if quality and customer demand give it the same future.
Ah, Hyundai build a RWD Maxima/ Avalon!
This car is going to eat any remaining lunch that the 300c might have on its plate. The 300c is painfully old news today, even the wannabe hustlers have moved on to the Charger (a much nicer looking car).
This car is designed to appeal exactly to the same crowd of early adoptors that went for a 300c regardless of Chyslers piss-poor reputation.
Five minutes of comparison between a 300c and the Genesis is all a consious person with a pulse needs to see that this car, at the very least looks and feels like it is worth thousands more than a 300c.
Dont know about the heartland of the USA but on the coast Hyundai has a far superior reputation a cache value than Chysler or Pontiac. IMO the Genesis will also hurt sales of the G8. It offers up an excellent alternative for anyone who is turned off by the silly hood scoops and side vents of the G8. It also can be equiped with many options not available on the G8. I also suspect Hyundai will do whatever it takes to “move the metal” so I would not be surprised to see some rather nice incentives offered on this car.
Oh, the Genesis does look like it will fit some 22″s with no problem! Those Gangsters will love it!
Against a BMW 550, the V8 Genesis is fully $25,000 less, according to a random sampling I just did on Truedelta.
That’s some serious pocket change, even for the wealthy.
Plus the benefit found in having a “plebian make car” in order to keep hateful and jealous eyes off your stuff and yourself, as the wealthy found when they traded down to 1934 Ford convertible sedans instead of 1933 Packard phaeton V12’s during the depression.
Against a BMW 550, the V8 Genesis is fully $25,000 less, according to a random sampling I just did on Truedelta.
If market appeal was just a function of cylinders per dollar, GM would be in great shape.
The brand really counts here, and Hyundai is the wrong brand for it if the goal is to grab the high-end conquest buyers. As the uber-Accord, it could work, but most of those buyers want four-cylinder efficient cars, not a speedy gas guzzler. So we’re back to GM again, full circle.
The best argument to get a Genesis over the G8 and 300? Hyundai is financially stable.
I think the Genesis will do well. There is not a whole lot of branding on the outside. Take off the badge on the trunk and you could tell most people it was an Acura or Infiniti and they wouldn’t know the difference. This thing is RWD with lots of feature for a good price and probably 9/10 the performance in most areas. It might not kill of BMW or Lexus, but it will take away a lot from some of the other competitors already mentioned here. Might make a good livery option. Not as good a value as a town car, but the interior is so much more modern.
I disagree whatdoiknow1, the people this car may swoon don’t want outstanding style like the 300C has in spades. They just want a supreme wafting car to coddle them.
The market that GM abandoned with the death of the Park Avenue and that Ford lost with the death of the Lincoln Town Car and Ford/Mercury RWD twins.
It wouldn’t surprise me to see these springing up in Sun City or parked at all-you-can-eat buffets with vinyl roofs and wheelchair caddies on the back.
Yeah, but the BMW and Infinity (G35) are available with stick-shift–the best way to legally have fun in a car on public roads.
With the terrible experience I’ve had my with 2004 Elantra (admittedly a cheap car), I don’t think I could find myself spending nearly $40,000 on this brand again.
Had I spent more than 11K on this car, I think I would be more angry with the fact that the car feels and drives twice its age and mileage. Every time I get in the car I’m reminded of why I paid so little, something that is not readily apparent on the showroom floor or during a test drive.
Here’s hoping Hyundai has made strides in material quality and reliability to justify Lexus pricing.
Hyundai claimed it would have cost them about $2.5 billion to launch a new brand channel, so I can understand their reluctance.
Still, it’ll hurt them, not only in badge cachet, but in customer experience. One of the ‘intangibles’ that sways people to the premium brands is that they don’t like having to stand in line for service with Corolla and Sentra owners, especially if it means they don’t get a free loaner car or gourmet coffee. And if dealers offer that service to Genesis owners, but not Elantra/Accent drivers, it’s really going to make their lower-end customers feel burned — not an area where Hyundai needs any help.