It really looks like people want either the cachet of the BMW/M-B, or the value of the Genesis, in both Canada and the US. The Lexus, along with the Audi and Cadillac, form a second tier. One also wonders how many people choose the ES, or loaded Avalons and 300s as an alternative.
Interesting as I think I'd lean to the GS (smart) or the A6 (splurge) in this class of the current offerings.
I've always favored the 5 series in this class historically, but with no manual transmission on offer anymore, I can't see taking the plunge on the FGC.
The Hyundai is a heck of value, but I'd spend a bit more just for the peace of mind of Lexus quality (perceived or not).
Agree 100% plus Lexus is a Japanese luxury brand while the Gensesis is struggling with identity because it is a mainstream brand regardless of how good it the car is. Hyundai desperately needs a luxury brand.
Lexus, Infiniti and Acura are all essentially separate sales channels for Toyota, Nissan and Honda.
It wasn't until the 3rd gen LS that Toyota launched the Lexus brand in Japan and even then, the previous gen RX was still sold as the Toyota Harrier until 2013.
Toyota has a separate lineup of luxury sedans in Japan, including the flagship Toyota Century and the Crown Majesta (which shares its platform with the GS, but is more luxurious).
The Infiniti and Acura models that are available in Japan are sold as Nissans and Hondas.
Both in Japan and Korea, these luxury models are basically their own sub-brands (which is why the Genesis sedan, along with the Equus, Century, Crown Majesta, etc. - have their own special badging).
If Hyundai believed there was a business case for a separate luxury brand and dealer stream I'm sure they'd pursue it. Hardly seems worth it to me with all of two models available (excluding the why-does-this-even-exist-anymore Equus). They are likely never going to appeal to the badgewhores anyway. I think they're okay with that. I know I am.
There is no business case for it yet with only 3 low volume models.
Hyundai may very well eventually go sub-brand or full separate brand route but they would need to expand their lineup 1st (at the minimum entry-level/compact sedan and a couple of crossovers).
On a side note, I do believe that apart from size, the GS offers nothing in terms of luxury or performance over the IS, which is breaking sales records. The GS is just not special enough (although I think it looks vastly better than the IS). Similar relationship between the 3 series and the 5.
Oh, you couldn't be more wrong. It is most definitely a step above in luxury.
I may need to sit in them again. I really didn't sense a $15K uptick in luxury but it was a while ago. I just remember thinking that there was no way that the GS is worth $70K from the perspective of luxury and that the IS interior was nicer.
The GS is considerably more spacious inside...you can almost lounge in there
No question about that. But does more space equate to more luxury?
Generally yes - luxury has traditionally meant not compromising on power, quality of materials, amenities and space (hence, Rolls and Bentley not offering compact sedans) and why luxury had meant RWD (with FWD-based models using AWD as a substitute).
So, there's a $20k SRP difference between these two cars. I wonder how the margins compare and, if they are about the same, what (if any) material differences has Lexus built in to the GS for the extra $20k. Or the inverse, what has Hyundai left out (if anything)?
Cynics will say 'marketing' but the GS didn't cost $20k more than the Genesis to promote. Is there $20k in additional value in materials...technology...features...R&D?
Could it be efficiency...has Hyundai figured out how to build the same car as Lexus for $20k less...and learned how in a fraction of the time? Maybe, but it would seem un-Toyota-like for Lexus to be that bad at manufacturing.
Again, if the margins are about the same and the Lexus costs $20k more, where'd the money go?
People sometimes say that you get what you pay for...does it hold true here?
Canada isn't the greatest market in which to make the assessment since it is too small (esp. for larger luxury models).
The US market gives a better example.
Basically, the Genesis sedan starts about $7-8k lower than the GS and Q70.
If Hyundai had launched a separate luxury brand in the US, it would have had to add about that much to the price of the Genesis (in Korea, the GS can be had for less than the Genesis, in part to the valuation of the Yen and in part to the Genesis being more expensive in Korea due to cutting amenities for the US market).
The remainder is the Genesis not having quite as nice an interior as the GS/Q70 (i.e. - painted plastic door releases) and Hyundai eschewing the use of aluminum to keep costs down.
Hyundai does also have certain other efficiencies such as an ownership stake in a high tech steel plant (which is why they have eschewed the use of aluminum in favor of ultra-tensile steel - which has played a role in the Genesis getting the top score in Australia's ANCAP crash assessment.
