-
Automotive Articles Magazine 
 
 Automotive Industry News
 Auto Shows
 SEMA Show
 Top Stories
 Features and Editorials
 Letters to the Editor
 
 Vehicle Previews
 
 Vehicle Reviews
 
 A European Diary
 2004 Paris Motor Show
 
 Motorsports Coverage
 SCCA Speed World Challenge
 
 Technical Corner
 Feature Car
 Project Cars
 Nissan 350Z
 Eclipse GS-T
 Subaru WRX
 Honda S2000
 Tech Check
 Technical Articles
 
 About Us
Search
Top Stories
Latest Headlines
Super Car Shootout - Ferrari 458 vs. McLaren vs. Audi R8
GM Debuts Hummer H3
August a Tough Month for Automakers
Ford’s Luxury Brands Down, Saturn Vue Upside Down
Sales Up in July, Imports Continue to Grab Share
Honda Plays Incentives Game
Ultra-Luxury Lexus
Aussie Inspired Ford?
Chrysler Profits Up Thanks to New Models
Redesigned Sentra Delayed

Automotive Industry News : Top Stories Last Updated: Aug 16th, 2006 - 11:01:00


Mercedes, Lexus Fighter from Hyundai?
By Mike Cervantes
Jul 28, 2004, 00:27

Email this article
 Printer friendly page
Discuss this story

Courtesy: Hyundai Motor America
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 Automotive News, those rumors may come true as soon as 2007. Sources tell the newspaper that executives have gained the confidence following strong quality results from the latest JD Power studies and continued sales growth.

 

An unnamed “senior executive in South Korea” states that Hyundai wants “to launch a brand that is strong enough to compete with BMW and Audi and Lexus,” with the US channel in place sometime within the next three to four years.

 

Another nameless source, this time at Hyundai Motor America, explains the fast pace. “Hyundai's next generation of Korean-market luxury cars is arriving in 2007. They don't want to wait for the generation after that to launch a luxury brand in America.” There also appears to be the consensus that the Hyundai brand cannot move much higher on its own and the luxury brand is needed to propel the company into the top five of global automakers.

 

Courtesy: Hyundai Motor America
Automotive News reports that a 3.5L V6-powered RWD sedan is being readied for the luxury brand with inspiration coming from teardowns of Mercedes and BMW products. It will fit between the Equus (a V8-powered large RWD sedan offered only in Korea - think last-generation Lexus LS400) and the XG350 on sale currently in America and soon to be redesigned.

 

Not everyone is happy, however, about these expansion plans. “Hyundai Motor America has been able to forestall it until now, but the Americans will probably get a luxury brand before we're really ready for it,” a US source told AN. Some dealers are wary of investing in a standalone Hyundai luxury brand showroom, citing the long history of Honda’s Acura and Nissan’s Infiniti brands and their struggles in America.

 

One thing is for certain; the impact of a Hyundai brand on vehicle prices in the luxury sector could be substantial. Hyundais still tend to sell for thousands less than comparable Hondas or Toyotas.

Discuss this article on AutomotiveForums.com

© Copyright 2006 by AutomotiveArticles.com Top of Page