Are American motorists ready to pay luxury prices for…a Hyundai?

Enter Hyundai Genesis, which as of fall 2008 is expected to surface more and more on roads and highways in the United States.

Unknown Territory

Introduced June 2008 only in standard V6 engine format, by October buyers will be able to tap a new option for the South Korean automaker’s first V8 engine.

The original V6 model started at $33,000, and the more powerful version expected to start around $38,000.

Hyundai’s foray into luxury and power has created a measurable buzz in the automotive industry, for many reasons.

Probably foremost among them is, why is this company known for compact, economy vehicles entering the luxury market?

And why now, when the trend is in the other direction for almost every other automaker?

It’s part of an image makeover for the company, whose name in Korean means modernity.

It’s also part of an effort to be included in sentences with Toyota and Honda. Call it “Japanese envy” perhaps.

But the company aims to be a world player, and who can fault them for trying?

What is the Hyundai Genesis and Why Should We Care?

The broad concept is to build upon Hyundai’s stance as a deliverer of some of the most fuel-efficient cars on Earth.

Why not market a car that offers power and quality to go along with the great gas mileage?

Enter the gamble, Genesis, which Hyundai executives expect to sell at a 20,000-a-year clip. Ultimately the company expects the V6 model to represent about 80% of that amount, the V8 the rest.

The V6 features a 3.8-liter that kicks out 290 horsepower, with an Aisin six-speed automatic transmission. Or bump that to a robust 375 horsepower V8 with its 4.6 liters and ZF six-speed automatic transmission.

Both are rear-wheel drive, a first for Hyundai, and are sold as sedans.

The exterior does not immediately catch the eye, except maybe for the large sporty grille.

Inside, things get better. The Genesis is plush and roomy, with high-quality materials and high-tech gizmos. 

Options include:

• Adaptive front lights
• Front and rear parking sensors
• A 17-speaker Lexicon audio system
• Six-disc in-dash CD player
• A reverse camera
• Cooled driver’s seat
• Rain-sensing wipers

Standard on all models are auxiliary audio input jacks and Bluetooth connectivity.

Hyundai’s Gameplan

The Genesis name fits Hyundai’s strategy, as the next complete makeover step is to go hybrid with the Sonata mid-size sedan. That is planned by 2010, complete with a new generation lithium-ion battery pack.

Indicating its perceived copy-cat stance with Toyota, Hyundai will stick to the hybrid engine with no thoughts of offer a plug-in option. If it works for Toyota, why tinker with success?

Another angle is improving the brand’s reputation for quality. When Hyundai first surfaced in America in 1986, they weren’t exactly known for quality. One of the biggest contrasts with Toyota and Honda who are both known for reliability.

Much has changed. The Hyundai Group, which also owns and operates Kia, focused on quality enough to now rank near the top in J.D. Power quality surveys. Beginning to use some of the industry’s best and longest warranties paved the way for them.

Hyundai now ranks No.7 in terms of sales in America, following in order Toyota, Chevrolet, Ford, Honda, Dodge, and Nissan.  It sells more cars here than Chrysler.

That says much about the brand’s quality perception.  And, perhaps, the Genesis will begin to complete the perception metamorphosis for Hyundai.

The post Selling Hyundai to the Luxury World appeared first on Cash for Cars Selling Tips.

We’ve even done it with our reliable used-car sales overview.

Reliability is a huge factor in the mind of any potential car buyer. It’s that peace-of-mind on Highway 395 through Bishop. Or for that matter, while rolling through Bakersfield, Baldwin Park, Brea or Barstow in California’s summer heat.

The D Word

The ability of a car to always start, and run, where and when needed.

Many don’t care what a vehicle looks like, or how it feels inside. The No. 1 question: will it start, and get me where I need to go?

Soccer moms demand it. Without it, commuters will move on to another vehicle.

J.D. Power and Associates recently released its newest ranking of luxury vehicles based on dependability. Lexus took the title, with Buick dropping from the top spot it held last year.

This marks 14 years in a row that Lexus – Toyota’s high-end brand – held top rankings in the study.

The study measures problems experienced by original owners of vehicles after three years.

Lexus had 120 problems per 100 vehicles, down from 145 the previous year.

You May be Surprised at The Results

Some rankings, such as that of Buick, are rather surprising.

Not because Buick makes bad cars, but because dependability seems to be an asset that the company markets to sell its models.

Another interesting high-ranked luxury car was Ford’s Mercury, which placed second in the J.D. Power list.

It was followed Cadillac for General Motors, Toyota, and Honda’s Acura luxury brand.

Land Rover was the worst, with 344 problems per 100 vehicles.

Overall, the average improved to 206 problems per 100 vehicles, down by 10 from the previous year.

Most improved was GM’s Saab brand, to 254 problems, down from 319.

That was in the luxury class alone. In the compact car segment, the Toyota Prius hybrid was top-ranked. The Chevrolet Monte Carlo was the top among the midsize sporty cars.

Ford models topped three categories: the Crown Victoria as the best large car, the Ford Ranger as a midsize pickup, and the Mercury Monterey as the most dependable minivan.

Chrysler was the only Detroit automaker with no brands besting the industry average.

So, What Are the Biggest Problems?

The biggest problem cited in the study was wind noise – peculiar considering the study was about dependability.

If a car’s ability to run smoothly is the most important aspect for an auto owner, who cares about wind noise?

That was followed by noisy brakes, pulling left or right, dashboard problems, and window fogging.

It’s Not All About J.D. Powers

There are, of course, other ratings for car dependability. MSN Autos offers its own Car Reliability Ratings, where you can simply type in the year, make and model of an auto to learn more.

On the site, of interest is a note that a major reason people resist buying used cars, according to J.D. Power research among focus groups, is buyers don’t want to inherit “someone else’s problems.”

The search mechanism is fun to play with. For example, typing in a 2000 Toyota Tacoma reveals that users give the vehicle an 8.7 rating, while MSN Autos gives it a 7.5.

Users and MSN Autos also post their own reviews.

“Best vehicle I ever owned,” reported one owner in an Overall assessment. “I do wish the new Tacoma’s were smaller, but if gas hits $5, maybe they’ll get small again.”

Of course some user reviews should be viewed with a grain of salt, because a writer may have sour grapes over his or her purchase that influences a negative review – which then remains on the site for all to see.

On the other side, who knows if glowing reports are coming from a dealership, or the actual automaker. Some companies have been known to have professional bloggers infiltrate review sites with positive reports – and the automotive industry is not alone in this facet.

Being smart and doing research that utilizes several different sources of information should help reduce the influence of opinions and provide solid factual evidence.

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