10 Reasons We Think the New Genesis Brand Will Win Luxury Car Buyers

2017 Genesis G90 front angle hero ・ Photo by Genesis

In the global automotive luxury brand game, another player has arrived—Genesis. Exciting news, until you consider its parent company—Hyundai. But wait, not so fast. As a mass-market brand, Hyundai has gone from zero to hero in the past 10 years, offering buyers more car for less money at a time in history when that has been a highly desirable proposition. Sales have skyrocketed and sarcastic jokes on late night talk shows have subsided.

So if you’re not yet convinced Hyundai can handle a luxury marque, read on for the 10 reasons we think the new Genesis will succeed as a global luxury brand and win over luxury car buyers.

1) There hasn’t been a new mass-market-turned-luxury-brand in the US for 27 years.

Genesis, the luxury division of Hyundai Motors, will stand on its own as a completely separate brand. What Lexus is to Toyota, so Genesis will be to Hyundai. Further, Genesis is making history as the only new luxury brand besides Tesla to be launched in the US in 27 years—with Lexus and Infiniti launching in 1989.

And let’s face it—luxury brands aren’t what they used to be. Even the most snobbish brands are making their cars affordable to the average income earner. Case in point: The average cost of a new car in the US is $33,560 and a new Mercedes C-Class starts at $34,475.

Hyundai has already proven it can be successful with a high-end car since the launch of the Hyundai Genesis sedan. That luxury 4-door quickly became the third best-selling car in its class with only the Mercedes-Benz E-Class and the BMW 5-Series besting it.

2) The Genesis G90 and G80 are global cars, priced to appeal globally.

The brand kicks off with two sedans. The first, based on the existing Hyundai Genesis sedan, is now called the Genesis G80, and it starts at $41,400—just 6 percent above the Hyundai Genesis' starting price. The second, based on the larger Hyundai Equus, is redesigned and renamed the Genesis G90. If pricing stays in the Equus ballpark, we expect the new G90 to be priced just just above the Equus, which starts at $61,500.

By 2021, only five years from now, Hyundai will have two luxury sedans and two luxury suvs on sale. The cars will be sold in North America, the Middle East, China, and South Korea. Since Hyundai is known for offering beautifully designed cars with lots of amenities for less, Genesis plans to approach luxury buyers (and entry-level luxury wannabes) with that same proposition.

And who, in any country these days, doesn’t want more luxury for less money?

3) Genesis will bring out four new products in the next five years that will each be better than the two it has now.

How do we know this? Hyundai has announced a near-luxury sedan (think BMW 3-Series), a sport coupe, a midsize SUV, and a large SUV.

A hint to what’s coming next will be a derivation of a popular concept Hyundai showed to the press last year at Pebble Beach. The Vision G concept, although derivative of many luxury coupes we’ve seen, is an impressive base to start from. As for it looking like other luxury cars, many brands have been successful at emulating successful design language—for instance, Yamaha’s cruiser motorcycles were greatly accepted by Harley-Davidson lovers as being much like them, but cheaper and with better engineering.

4) The Hyundai Warranty is now also the Genesis Warranty.

Most car buyers know that Hyundai (and its daughter company Kia), have the best warranties in the car business: 5-Year/60,000-mile Service and 10 Year/100,000-mile Powertrain coverage that transformed the brand’s sales in the early 2000s. Well, now Genesis will have this same warranty—and no brand in the luxury set even comes close.

The plan, called “America’s Best Warranty,” won't be watered down or eliminated anytime soon. Hyundai CEO, Dave Zuchowski, says the warranty has been vital to the Hyundai brand's success: “I wouldn’t want to walk away from it.”

Will the warranty have the same effect with the luxury buyer? We think so. When more money is spent, the risk is greater. The risks associated with mechanical problems, required maintenance, transmission issues or possible electronic glitches are higher in complex luxury cars loaded with a myriad of features and technology.

5) Genesis will bring valet services to your doorstep for regular maintenance.

The story with most luxury car brands is that they pile on high-cost required maintenance, making the ownership experience just as painful as the initial sticker price. Hyundai, in two clever moves, will provide free regular maintenance and also let you avoid going to a Hyundai dealership for those services and swap your car for a loner vehicle of equal or lesser value.

Photo by Genesis Motors

6) Genesis is bringing back “cocooning” with its super quiet cabins.

The Genesis G90 flagship sedan isn’t going to be the sportiest of the luxury saloons, nor will it have the best of technology among its rivals, but it does purport to be the quietest of the big sedans. Back in the days of Lexus and Infiniti, sportiness was seen as superior to quietness, and Cadillac was known for its “cocooning” the drivers—with no road noise at all.

Having driven this new Geneis G90, I’m convinced it's the quietest big sedan out there. That may not mean a lot to a person who is into cutting-edge performance, but it's highly desirable for the commuter who wants the most peaceful drive possible for those long and boring commutes or trips. The seats add to the decadence with 22-way driver’s seat controls and super soft, fluffy couch-like leather buckets. We suspect these seats will be a big selling point with many luxury buyers.

Photo by Genesis

7) Genesis will include all safety for all buyers.

Sure, the amazing technology that brought us a camera, radar, or laser on every inch of the car is great, but it usually costs extra. Genesis has come up with a pricing strategy that includes all the safety it can offer on each variant at no optional charge.

Most of what’s out there is on the list: Automatic emergency braking, pedestrian detection, driver attention alert, smart blind-spot detection, lane-keep assist, smart cruise control with start/stop, full-color head-up display, multi-view camera, high-beam assist, parking sensors, haptic-feedack steering, and pre-active seat belts.

8) Genesis has hired top-notch designers and engineers from ultra-luxury brands.

When Genesis comes out with its coupe during the next auto show season, we expect to be wowed by the car because of the impressive design team Genesis has assembled. It's led by Peter Schreyer, the man who  designed the Audi TT and is responsible for most of the recent Hyundai and Kia vehicles. Genesis has lured Luc Donckerwolke, formerly the Director of design for Bentley. Also on board is Albert Biermann, the engineering executive who spent three decades working on the M3, M4 And M6 at BMW M GmbH. He will serve as Genesis’ head of Vehicle Test & High Performance Development.

More related to marketing and brand management, Genesis has also hired Lamborghini executive, Manfred Fitzgerald, who will be responsible for running global marketing strategies from his office in Seoul, South Korea.

9) Genesis will not scrimp on the latest technology.

Most of the technology you’d expect in a luxury car is in the new Genesis G90. But to sweeten the tech-savvy buyer’s deal, Genesis has a partnership with the Amazon’s virtual assistant “Alexa.” With the “Alexa Skill” package, owners, via voice activation, can start their car's engine remotely, lock and unlock doors, turn on climate control and hit the horn and lights from afar. From inside their home, car owners can say, "Alexa, tell Genesis to start my car at 70 degrees." or "Alexa, tell Genesis to lock my car." 

Another feature worth mentioning comes from Hyundai's close relationship in Korea with Samsung. The 12.3-inch high-definition interior widescreen has an astoundingly clear image when the 1 Megapixel rear camera is engaged. And as for hints of autonomous driving, the "Genesis Smart Sense" package's active cruise control is moving toward hands-free lane keeping, slowing for cars in front of you and auto stopping. 

10) Genesis has an enthusiastic leader for the US market – Erwin Raphael

After recently meeting Erwin Raphael, the new US leader of the Genesis brand, it's clear that Hyundai is all about making the Genesis brand a serious contender for luxury car buyers. Raphael’s experience with Hyundai includes leading the Western Region of dealership sales and leading the service and warranty departments as well. He comes from years of leadership in vehicle development, engineering, manufacturing, sales and marketing with Chrysler LLC and Toyota prior to his stint with Hyundai.

More than that, Raphael sees and acknowledges the challenges Genesis will have as a brand. And he is not shy about finding ways to offer more luxury services to customers than they might expect. He also seems to have a handle on the realities of playing in the highly competitive luxury game. "We don't expect to outsell the top luxury brands, but we will be able to find some buyers who want what we offer," Raphael said. 

Time will tell if Genesis succeeds, but our bet is that it will.