Mercedes, Lexus Fighter from Hyundai?

[igor@af]

SUMMARY: Rumors have persisted for the past year that Korean carmaker Hyundai is planning on introducing a luxury line to fight the likes of Lexus, Mercedes Benz, and BMW. According to the latest issue of <i>Automotive News</i>, those rumors may come true as soon as 2007. Sources tell the newspaper that executives&nbsp;have gained the confidence following strong quality results from the latest JD Power studies and continued sales growth.

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[Navy I.C.]

i don't think hyundai can compete with honda or toyota. i recently rented a 2004 sonata for a week while my '99 accord was in the shop, and you know what? the feel, the ride, the drivability, nothing is on par with my accord. maybe once they shoot for the luxury market, they'll end up with a honda/toyota fighter...

[Hudson]

I've driven many Hyundais (and the related Kias), and aside from the Accent/Rio, they're good cars. The Sonata/Optima are very good competition for the Accord/Camry, especially when price is added to the equation.

I've seen some of the upcoming Hyundai models and they're going to be very competitive with Lexus and the like. Remember when Toyota was arrogantly going to pit its new brand against Mercedes-Benz and everyone laughed? Now Lexus is treated as a peer. Don't laugh at Hyundai's plan.

[CaTasHtRoPhE 67]

who would want a Hyundai when you can have a lexus or bmw

[Navy I.C.]

Originally Posted by CaTasHtRoPhE 67

who would want a Hyundai when you can have a lexus or bmw

thanx...

[mcervantes]

My take on this, for whatever it's worth:
I think Hyundai could make it work, if they try hard enough. The shots floating around the internet of the new Sonata certainly look promising. As the article states, Hyundai doesn't want to have to wait another vehicle generation to launch this new line, insisting on rushing in time for the '07 launch. IF it's true, that's where I have to object a bit. Hyundai's image, as seen in some of the previous posts, is still a bit iffy here in America and I think it'd do them best to let their newfound status as a builder of top-ranked quality cars develop a bit first.

I think the next generation of Hyundais could put them very close to Toyota and Honda, at which time they'd be wise to launch the luxury line. But then again, who knows how the US economy will be in 2007, no less a few years after that.

No matter what, it's going to take them time to develop the brand once it's on the market. Just look at Acura and Infiniti - a lot of average consumers would have a hard time defining what those two stand for. One final thing to remember is that although Hyundai doesn't yet have the sterling image of Toyota, Honda, or even Nissan; those companies weren't even as highly regarded when they launched their luxury brands as they are now. Anything is possible in this market. My .02.....

Mike Cervantes
AutomotiveArticles.com Editor-in-Chief

[twospirits]

Good points.

Between the latest JD Power awards and the auto magazines claiming praise on the Hyundai models I would not doubt that Hyundai has the confidence to launch such a line of luxury vehicles. While the stigma of the old Hyundai still lingers among most of the auto buying public, alot of people are finally realizing the quality and feel are way better than one would expect. One of Hyundais' original slogans was Driving is Believing, and its so true. After siting in one and driving it, one is left more amazed than before. Plus with the warranty (which most others have copied) and with more values and features than comparitive models its no wonder that the other auto companies are looking behind their shoulder and fear the company closing in on them.

As mentioned, there are numerous photos of the up and coming models and they all look promising. With Mercedes Benz aquiring parts from Hyundai and Hyundai venturing into cross partnerships it has gain and continue to gain the necessary tools to become one of the top three imports. Adding a luxury brand to the mix is the next logical step and knowing their products and how well they are made, I am sure they will stock them with value, options, style and price them accordingly. Of course, by the time the brand is launched it won't have the Hyundai name and they would be compared to a Lexus, BMW or Mercedes. It would make them a force to be reckoned with.

TS

[icE_x]

Hyundai will probably sell more among people who want more luxury for a lower price. I think they're going to target the middle market.

[twospirits]

I think they are doing that right now.

Quick story...The other day I was in a high class neighborhood and went to the supermarket. Upon waiting for my girl to finish her shopping I noticed alot of Hyundais in and out of the parking lot. About two years ago all you saw were Lexus and MB in there. I even tease one guy with an XG350 and told him "Nice Lexus". He tells me "No used to have one, I like this one better, its a Hyundai XG". And I told him "I know, why you changed." he started to give me reason after reason and I found it funny that even the rich folks were starting to see the value and quality of the brand. So I don't doubt once the High class brand comes out that it would sell well and make others take notice.

Go Hyundai.

[icE_x]

nice