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NEWS
Hyundai Genesis will not fail
Buyers won't have a problem paying $60K for a Hyundai says chief operating officerWhen the new Hyundai Genesis luxury car arrives in Australia in November 2014, it will mark a coming of age for the Korean company that a couple of decade ago was known for selling cheap and cheerful small cars, most famously the Excel.
The company is now the fourth most popular new car brand in Australia behind league leaders Toyota, Holden and Mazda, and is about to embark on a bold new foray into the luxury car segment with the new rear-drive, V6-powered Genesis.
But will people buy a Hyundai with a near-$60,000 price tag?
"There's plenty of them today," says Hyundai's chief operating officer John Elsworth.
He argues that that half of all Santa Fe (large SUV) customers opt for the Highlander model, which is priced at around $53,000. Roughly 5000 units of Santa Fe have been sold so far this year.
Although the same theory cannot be directly applied to a large luxury sedan, as SUVs are the hottest property in new cars at the moment, Elsworth says it's promising. "Above 50 grand, years ago you just wouldn't have expected [Hyundai to achieve that]."
The Genesis will be packed to the hilt with luxury features in the areas of comfort, convenience and technology, and the rear-drive large sedan will make use of a 3.8-litre V6 that generates a healthy 232kW and 397Nm. A conventional eight-speed automatic transmission will take care of the cog-swapping.
We drove the V6 Genesis in Korea three months ago and road test editor Matt Brogan scored it 82/100. He praised the car and noted it "has what it takes to compete with the world's best".
Although Hyundai won't reveal the price of the Genesis until it's launched in the first week of November, Elsworth says it'll represent "fantastic value, even at 50 or 60 thousand dollars".
There is always a chance the car could bomb as customers fail to materialise but the senior Hyundai Australia executive, who previously worked for Holden for 22 years, is adamant this won't happen.
"We're not planning for it to be anything other than successful. The package we put together on the car will surprise everyone.
"We know going in to try and sell a luxury car, there's probably a number of objections we need to answer and identify for people. But I guarantee we have ticked every objection with the whole package," he says.
The value equation will be unmatched in the luxury car market, says Elsworth, from the warranty to the specification, the aftersales package and of course the price tag.
"I think it is a class-leading [package], no two ways about it," he says.
By comparison the most affordable Mercedes-Benz E-Class is priced from $80,400, so the Hyundai will cost $20K-$25K less.
Mercedes-Benz has previously told motoring.com.au E-Class buyers are unlikely to jump ship to the Genesis, but that the German prestige brand will nevertheless be closely watching the newcomer.
The days of Korean cars being viewed as cheap and nasty are over, insists Hyundai. "There's no issue of Korean stigma," says Elsworth, who reckons the Genesis will solidify the marque's status as a premier brand.
"What we're trying to do is diversify what Hyundai means to people. It means SUVs, it means small cars, it means high quality and great after care packages. And in a month it also means luxury cars. It's an evolution of the brand."
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Written byFeann Torr
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