Hyundai defends Genesis about-face

Hyundai says its decision to produce a six-strong luxury car range is the reason behind its backflip on repeated denials it would establish Genesis as stand-alone global premium brand to rival Mercedes-Benz, BMW and Jaguar.

The ambitious Korean giant last week announced it would do just that, promising six Genesis models by 2020 starting with the G80 (a rebadged version of the large Genesis sedan already sold here) and the G90, a replacement for the Equus limousine available in the US.

An all-new mid-size sedan to rival the BMW 3 Series (G70) is expected to follow in 2017, along with a mid-size crossover, a large SUV and a sports coupe to replace Korea's existing Genesis Coupe.

The G90 was officially previewed earlier this week and has also been spied testing (pictured) ahead of its Korean release in December, but the G80 will be the first Genesis model sold in Australia without Hyundai badges -- next year -- and is expected to be a facelifted version of the current Genesis spied recently in testing (pictured).

Hyundai is yet to confirm which Genesis models will be available globally, and unlike Volkswagen's Audi brand, Toyota-owned Lexus and Nissan's Infiniti, Genesis models will continue to be sold via Hyundai dealerships.

The significant announcement contradicts Hyundai insistence that Genesis would not become a separate premium brand, as it stated in 2012 and again in 2014.

When questioned by motoring.com.au on the change in direction, Hyundai Australia public relations general manager Bill Thomas said the 2008 GFC had merely delayed the company's Genesis sub-brand plans.

"There’s more potential in the global luxury car market, more experience with luxury cars, and more models on the way," he said.

“Our luxury car program began in 2004 when Hyundai started work on first [BH] Genesis, which won North American Car of the Year in 2009.

"When the global luxury car market shrank as a result of the global financial crisis, our plans for a separate brand were delayed.

"Expansion of the Genesis range from two models to six gives us the opportunity to create a true stand-alone brand in an ever-expanding luxury car market, where before it wasn't practicable with only two models.

"Six vehicles gives a broader customer base, and all of these customers demand and expect premium service -- we can provide that exclusive service more effectively with a true stand-alone brand, and match our competition better in the process."

Speaking of the current (DH) Genesis, which succeeded the BH and is the first available in Australia, Thomas said: “Customers love the car. Based on that experience, and years of detailed market research, we have decided to move forward and launch a luxury brand.

“We know some of our Genesis customers in Australia already think of it as a separate brand. It’s clear they have no issue with a separate Genesis identity and by making this decision, in a way we are supporting what’s already out there,” he continued.

The move also contradicts assertions made by Hyundai Motor America CEO David Zuchowski to motoring.com.au last year.

“We talked about it [a standalone brand] in the past; [but] we like what we’ve done now, and that is not really part of our discussions anymore,” Zuchowski said at the 2014 Detroit motor show.

“The investment [to create a new brand] from a company perspective is tremendous. The investment from a dealer perspective is tremendous. The splintering at a brand-building effort is really impactful.

“We actually believe that many of our competitors that have elected to go a different way and create a separate distribution channel for the premium products, might re-think that [if they] had that decision to make today,” he concluded.

Large Genesis models are likely to be based – like Australia's current model -- on a bespoke front-engine/rear-drive platform, but with different wheelbases and all-wheel drive (which is already available in the Genesis sedan in other markets) for the large SUV.

A smaller new chassis architecture could then form the basis of the mooted mid-size sedan, coupe and SUV – much like Jaguar's XE.

As with its luxury brand rivals, there will be significant technical differentiation from Hyundai-badged product to further separate Genesis as a premium brand.

All models will be designed by former Lamborghini and Bentley designer, Luc Donckerwolke, following his defection to Hyundai from the Volkswagen Group June this year.

At this point, however, there has been no confirmation of which Genesis models will be produced in right-hand drive, but the Equus flagship will initially only be aimed at LHD markets like China, Russia, the US and Korea – where it's known as the EQ900 -- and the smaller three models are more likely to be beneficiaries of a profitable RHD business case.

“We will certainly study the potential of every new Genesis for Australia,” Thomas concluded.