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Hyundai Bets New Sedan Is a Luxury It Can Afford
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Interesting strategy, 755 dealers for Hyundai in the USA and a target of 20,000 upscale Genesis U.S. sales for 2008. Is it doable in a contracting market? Even if it falls short it could attract customers into Hyundai dealerships, especially when the Genesis will be shown next to other Hyundai cars and SUV's. Hyundai brand name gets visibility and it could show one more convincing proof that Hyundai can make quality and upscale cars. Hyundai is setting the goal of exceeding the specifications of BMW and Lexus cars. If it enhances the Hyundai image and gets customers excited and wanting to walk into Hyundai showrooms to look at it, then it may make sense. The Hyundai ad campaign may have to be revisited. Hyundai gets to continue developing its expertise in making cars in the upscale range so that it can at some time in the future challenge the Lexus and BMW brands. This is a long term strategy with brand image perception benefits in the short term using modest sales expectations of 20,000 in the first year considering the difficult market in 2008.
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Hyundai quality approaches Toyota and set to pass Toyota but the image from 1997 of quality lapses continues to linger or Hyundai has'nt established itself in the customers mind for quality and excellence. The new Genesis $30,000 luxury carwill be one more step towards giving Hyundai an upscale image.
Linked Articles
Wall Street Journal 04/29/2005
Hyundai Bets New Sedan Is a Luxury It Can Afford
Wall Street Journal 01/09/2008
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