Hyundai Genesis – a Rebadging Flop?

Is the pricing too aggressive or the brand lost in an indifferent marketplace?

Not everyone can claim to be able to regain admittance to the semi-exclusive Global Luxury vehicle club as failed Chrysler, Lincoln and Cadillac comebacks can attest. Nor is it easier to launch a new luxury brand as stumbling between the rocks and trees Infiniti learned. And Acura still  is learning, while Toyota’s Lexus triumphed beating the scoffing Germans, with price, performance and value.

This brings a travel-weary AutoInformed to the Los Angeles auto show this week – an event steeped in a history of exotic cars for the Hollywood set, but now one that is chasing an ill-defined and vague mobility future that mirrors – in a fun-house sort of way  – the new clean mobility purveyor image that all automakers are pursuing.

It’s time to look at Hyundai’s wannabe luxury-brand Genesis, three years after its less than stellar debut. On paper it seemed a good idea – albeit untried – at the time. Hyundai plucked one of its existing cars and re-badged it as the debut model for its new brand. Genesis was stillborn without its own DNA or unique selling proposition just an unheard we’re here pronouncement. (Hyundai Reorganizes with Executive Shakeups)

“Two years after its debut, Genesis is gone from the European market,” observes the LMC Korean Analytics Team. “The response to its product line was distinctly lackluster – perhaps unsurprisingly, given that its vehicles were originally designed to appeal to American consumers,” they say.

The U.S. is only slightly better. Sales are declining, which observers attribute to forcing Genesis to share showrooms with Hyundai. “This has left the brand having to re-franchise its US dealerships in a bid to trim numbers, thus allowing for standalone showrooms to be set up,” concludes LMC.

In its protected home market of Korea, Genesis is okay, but the original target of grabbing buyers away from BMW and Mercedes-Benz has failed. German sales are untouched.

The premise that having a premium brands or brands ala VW Group is a good and profitable venture remains alluring. Again, look at how Toyota has profited from Lexus. So, we won’t be surprised if Hyundai now doubles down on its original bet.

AutoInformed on Genesis

• Genesis 2019 G70 – $48,000 Four Cylinder?
• New Genesis G70 Luxury Sport Sedan Makes Concours Debut
• Hyundai to Try to Make Genesis a Global Luxury Brand
• Hyundai Fined $17.35 Million in Genesis Recall Delay

AutoInformed on Lexus

• 2019 Lexus UX – Another Compact Crossover
• Lexus LY 650 Luxury Yacht Revealed
• 2019 Lexus ES 350 in Production at Georgetown Kentucky
• Gen Seven Lexus ES Sedan Starts at $40,075
• Crossover Mania: 3-Row Lexus RX Debuts at Los Angeles
• Lexus IS Debuts at 2016 Beijing International Auto Exhibition