Hyundai opens door to Genesis Coupe

Hyundai Australia has created a stir by revealing the much-hyped Genesis Coupe is on the verge of heading down under.

Speaking at the launch of the ix35 compact SUV, Hyundai Motor Company Australia (HMCA) CEO Edward Lee has admitted the Coupe is close to an Aussie on-sale confirmation. The key to the Genesis Coupe's local hopes rests with the new 'YF' sedan that will replace the Sonata later this year.

Lee said it was imperative that the YF breaks through in the competitive mid-size sedan market to give the company confidence to proceed with the Genesis.

"There are a lot of requests for that," Lee said. "Before that we have to make YF successful. Then we have to go to the market and we are studying very, very carefully. Once we have confidence to make it successful we have to bring that one. We are preparing everything at this moment; we just have to consider when we bring that one.

"I think it is great potential we have," he added.

Despite no official confirmation that the car will be built in right-hand drive such a decision is only considered a formality now. Although HMCA remains in contact with other right-hand drive markets around the world to create enough demand for car, Lee said volume won't be the only factor in bringing the car to Australia.

"Volume doesn't guarantee everything," he explained. "If it is necessary for the brand, we bring that one. That is the consensus. That is why we are studying very, very carefully what is the right time."

Asked what was needed to get the project over the line, Lee said it was only the go-ahead of him and his colleagues at HMCA.

"If we [HMCA] decide it will be coming here," he said. "They [Hyundai HQ in South Korea] are preparing that one, so if we confirm we want to bring that one at this time it could be happening."

Pushed if such a decision hinged on the success of YF he admitted: "I think that could be the right time."

But one critical element is still yet to be locked in for the YF before it hits the makret in the second quarter -- its name. Hyundai Australia is keen to ditch the Sonata nameplate after years of lacklustre sales for the mid-size sedan; despite both the North American and South Korean markets retaining the name. Instead, Lee admitted the local operation is pushing for a unique name.

"It is not 100 per cent confirmed yet but we are going to have an i-series name," Lee said.

But the Genesis Coupe isn't the only important news from the emerging brand, with the new i20 light car set to spell the end of the highly-popular Getz when it arrives in late April. Styled in the same Germany studio as the larger i30, the compact i20 will be positioned against the likes of Toyota Yaris, Mazda2 and Honda Jazz at the more expensive end of the light car segment.

But while it will initially join the Getz in an expanded light car range for Hyundai, the Getz will eventually be phased out of production; most likely early in 2011. This is despite the Getz being the second highest selling model in the company's line-up in 2009.

"Getz has been extremely successful for us," said Ben Hershman, Hyundai's Senior Manager Product Communications and PR. "Only later on last year for the first time did any of our other models knock it off, and that was when i30 did over 20,000 units, so Getz completed the year as the light segment number one. It's a very good product and we have the opportunity to continue with that product. We said a year ago that there might still be opportunity to run Getz alongside i20 and we've decided to do that. So from the business plan perspective, with the factory, we want to continue this car throughout the year."

Quizzed about the Getz's future beyond 2010, Hershman was non-committal.

"In terms of moving forward we don't know yet, it's just for this year," he said. "What we've agreed with the factory is that it's this year and in terms of 2011 we haven't had those discussions yet."

Lee, however, was more forthcoming and went so far as to state his belief that the i20 will be so successful it will sell in the same numbers as the cheaper Getz.

"I think from next year, i20 will completely replace Getz sales volume," Lee said.

And Lee is unconcerned about the prospect of losing the sub-$15,000 price point that the Getz currently offers Hyundai. Instead, he is focused on improving the brand's image and reputation.

"Price point is very important but we focused on the brand," he said. "We try to put a lot of effort for the brand... Just moving up a little bit [on price] but for the product quality and everything we are very, very competitive. So even if we discontinue Getz, I don't worry much about it. I think i20 will be okay and we have other versions."

The "other versions" he alludes to is the i10, a light car that is similar in size to the Getz , built in India alongside the i20. But despite dealer demand for the baby car, Lee is adamant that it won't be on the local agenda until the i20 is a sales hit.

"There is a lot of interest in i10 from the dealers but, as you know, we have three very important brand new products so we have to make them successful first," he said. "So I told our dealer group that introducing new car is not very important. Once we make decision to introduce new car we have to make that one successful. If we do not have any confidence to make it successful, we will not introduce that new product. So from now on I have very great confidence with our product that every model should be successful."

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