HYUNDAI GENESIS

Genesis to Separate From Hyundai Showrooms

January 29, 2018 by admin 4 Comments

Hyundai’s Genesis luxury marque takes the next step.

Genesis Gangham, the first standalone showroom for Hyundai’s luxury brand.

Launched in November 2015, the Genesis brand has quietly and steadily continued to transition away from Hyundai to stand on its own. Hyundai’s luxury marque is currently composed of just two models, with a third sedan on the way. By 2020, the Genesis nameplate should include six models — three sedans and three SUVs.

Standalone Genesis Showrooms

The big news right now has everything to do with the way the Genesis markets its products. Currently, Hyundai dealerships carry the Genesis, carving out showroom space to present its two models. Certainly, that’s not an ideal way to advance a luxury brand, something Hyundai Motors will rectify by awarding standalone Genesis dealerships to top-tier retailers.

The Hyundai-Genesis split follows a seven-year test of the brand with American consumers. Beginning with the Hyundai Genesis Sedan, followed by the Genesis Coupe and Hyundai Equus, consumer interest and acceptance was quickly confirmed. Indeed, the Genesis sedan quickly became one of the top sellers in the segment. Moreover, consumers expressed interest in a standalone brand, much in the same way Toyota maintains Lexus.

To begin the transition, Hyundai replaced the Equus with an all-new Genesis G90, while an updated Genesis sedan received the Genesis G80 name. However, the Genesis Coupe did not make the transition and ultimately Hyundai discontinued it. Even so, we may yet see a Genesis sport coupe at some point, but it isn’t a priority for the brand.

The first standalone Genesis showroom opened in early January in Korea. Dubbed “Genesis Gangham,” the new showroom sits in Seoul’s Samsung-dong, Gangnam-Gu, the city’s prime business district. The showroom features a “launch bay,” where the drive experience begins. There, shoppers have a choice of five test drive courses on public roads around the district.

Genesis G70 Sedan — The all-new Genesis G70 sedan arrives April 2018.

US Market Showrooms

As for the US market, Hyundai plans to give some of its 350 elite-level dealers priority to apply for standalone dealerships, according to Automotive News. For the 2019 model year, Hyundai dealers not making the cut will quit selling Genesis product, but will receive compensation from the automaker to cover inventory, training and equipment to service Genesis models and for helping raise Genesis awareness.

Genesis plans to award approximately 100 locations in 48 markets across the United States. Top markets include such major cities as Los Angeles, Chicago and New York as well as San Francisco, Miami and Washington, DC. Some markets will have just one Genesis showroom. Genesis will announce its initial franchise recipients in the coming months, requiring showrooms to open no later than the end of 2020.

New Genesis Product

As for the upcoming product, the compact G70 sedan is on sale in Korea and arrives in the US this Spring. The Genesis G70 targets such models as the BMW 3 Series, Cadillac ATS and the Mercedes-Benz C-Class.

See Also —Raise the Stakes: 2019 Genesis G70

As for the first of three Genesis SUVs, the GV80 Fuel Cell Concept revealed at the 2017 New York International Auto Show likely points to what’s in store. That said, Auto Trends believes the main model will feature a conventional gas-powered drivetrain with a fuel cell or hybrid optional. Hyundai Motors is deeply invested in vehicle electrification, perhaps serving as variants on conventional models such as the GV80.

Genesis GV80 Concept — The Genesis concept points to the brand’s first SUV.

Strong Luxury Sales

Hyundai Motors’ “go slow” approach to growing the Genesis brand comes as US auto sales pulled back slightly in 2017, following seven consecutive years of growth. Luxury model growth has slowed also, but consumers continue to flock to many models with higher price points. Launching a new brand is an extremely expensive and laborious proposition, a cost Hyundai Motors’ will spread out for several years to come.

See Also — Midsize Luxury Sedan: 2017 Genesis G80

Hyundai Azera: The Last Hurrah

March 27, 2017 by admin 5 Comments

2017 marks the final year for Hyundai’s flagship sedan.

American consumers continue to shift their new car purchase decisions to crossovers and that move has taken a toll. The Hyundai Azera will soon be no more, putting an end to this flagship sedan’s all-too-brief reign.

Auto Trends confirmed the news with Brandon Ramirez — Senior Group Manager, Product Planning at Hyundai Motor America — at a media event last week in Durham, NC.

12-Year Model Run

The Azera came on the scene in 2006, replacing the previous XG300 and XG350 as Hyundai’s flagship sedan. That reign ended in 2009 when the Genesis sedan arrived and slotted above the Azera, itself usurped in 2011 when the Equus was introduced.

Both the Genesis and Equus were recast as Genesis brand models in 2017, returning the Azera to its flagship status. But only temporarily it seems.

Indeed, the market has been none too kind to the Azera as well as to other full-size models. Some sedans, such as the Toyota Avalon, have fared better, while the Chevrolet Impala, Ford Taurus, and Buick LaCrosse have also struggled.

With deep double-digit year-over-year declines for the competing products, we may see others drop out of the market too. At least traditional rear-wheel drive models such as the Dodge Charger and Chrysler 300 continue to find success in a dwindling market.

The Original Hyundai Azera

The Azera’s appeal was strictly for consumers wanting a large sedan with a powerful engine to go with it. Hyundai complied by serving the 2006 Azera with a 3.8-liter V6 engine with 263 horsepower. In 2007, the Azera gained a smaller V6, a 3.3-liter for its all-new GLS trim.

Hyundai has always positioned the Azera as a premium sedan, although its dimensions were only a few inches larger than the midsize and far more popular Sonata. Besides V6 power, customers could count on standard leather seats, heated front seats, a rear power sunshade, and an advanced audio system.

2015 Hyundai Azera.

In 2009, a refreshed Azera debuted with a revised front end and new 17-inch wheels. The look was even more elegant than before and provided the right segue from the Sonata to the upcoming Genesis sedan.

Additional changes in 2011 brought in revised engines with dual continuously variable timing and a notable boost in power. Hyundai also swapped out the five-speed automatic for a six speed, improving fuel economy in the process.

Second-Generation Hyundai Azera

An all-new Azera was introduced in 2012, featuring an even more elegant appearance. An upgraded interior, expanded safety features, and the Hyundai BlueLink telematics system were among the many improvements. Hyundai dropped the larger V6 and introduced an all-new 3.3-liter V6 engine with 293 horsepower. It immediately became the most power dense V6 in its class.

Hyundai continued to update the Azera even as sales never reached anywhere near the company’s goals. Those changes included the latest in telematics and safety equipment and a new, lower price.

Yet, outside of its more popular midsize and compact models, the Azera never made the impact expected. At the same time, Hyundai continued to enjoy strong demand for its two midsize crossovers — the five-passenger Santa Fe Sport and the seven-passenger Santa Fe.

2015 Hyundai Azera.

Looking Ahead

Now minus its three largest sedans as well as its Genesis Coupe, the Hyundai brand is pulling back temporarily, but not for long. The Santa Fe will effectively serve as the brand’s flagship, offering the only V6 engine as well.

Hyundai is also upping its green credentials, by rolling out a full line of Ioniq electrified models. A hybrid arrived in dealer showrooms in February and will be followed by a battery electric model in April. Hyundai will round out the Ioniq line when a 2018 Plug-In arrives in the fourth quarter. A Hyundai pickup truck is in the works and another SUV is planned.

Yes, the Hyundai Azera will soon be gone, but that loss should be made up by customers who might move over to a crossover or give serious consideration to the Sonata.

See Also — Hybrid Finesse: 2017 Hyundai Ioniq

Hyundai Genesis Sedan: Grand Finale!

January 25, 2016 by admin 7 Comments

A final look at the outgoing Hyundai Genesis.

The Hyundai Genesis is marketed as a “premium luxury sedan” and is the first upscale model sold by this Korean manufacturer in North America. Introduced in 2009, it was soon joined by the unrelated Genesis Coupe and the still larger Hyundai Equus.

Separate Genesis Marque

Late in 2015, Hyundai announced the creation of a new luxury brand called Genesis. The flagship Equus is transitioning to the Genesis G90 and the current Hyundai Genesis will become the Genesis G80. When the G80 appears it will represent a mid-product cycle update of the Hyundai Genesis and assume the G80 naming convention for the 2017 model year. The second-generation Genesis was introduced for the 2015 model year.

Genesis is being separated from Hyundai to allow it to assume its own identity and to be better positioned to take on the likes of Audi, BMW, Cadillac, Infiniti, Lexus, Mercedes-Benz and other luxury marques. By 2020, six Genesis brand models will be offered. As for the showrooms, you’ll still find Genesis models sold under the same roof as Hyundai. At least for now.

2016 Hyundai Genesis 3.8 RWD

A 2016 Hyundai Genesis 3.8 RWD was a recent weekly driver, representing the base edition in the product line. Notably, Hyundai offers the 3.8 edition in standard rear-wheel drive ($38,750) and available all-wheel drive ($41,250) as well as in a 5.0 Ultimate edition ($53,850), but in rear-wheel drive only.

The 3.8 edition denotes a model powered by a 3.8-liter, V-6 engine, while the 5.0 edition represents a model powered by a 5.0-liter, V-8. The constitutive difference, of course, is in performance as well as with its amenities — the V-6 makes 311 horsepower and the V-8 is rated at 420 horsepower. Both power plants are paired with an 8-speed automatic transmission.

Hyundai delivered a Genesis with all the goods supplied in the V-8 sedan, except for the engine. By ordering three packages — Signature ($3,900), Tech ($3,500) and Ultimate ($3,500) — you get a well-appointed V6-powered luxury sedan for $50,600.

That’s about the same price you’ll pay for a base BMW 5 Series (528i), but in the BMW you’re looking at a turbocharged four-cylinder engine making 240 horsepower. It would cost you about $5,000 more to upgrade to comparable power, never mind coming away with base amenities (e.g.., imitation leather seats).

Elegant Countenance, Upscale Interior

I’ve been an admirer of the Hyundai Genesis since the sedan arrived stateside, but much more so with the second-generation model. From stem to stern, the current Genesis offers a style matching the European brands. The front fascia features a bold, horizontal six-slat grille with strong creases pushing out from both sides of the upper portion of the grille and running across the hood to the windshield line. On either side of the grille are large, wrap around lighting assemblies containing boomerang LED daytime running lights. At the base of the fascia are LED fog lamps featuring single rows of six lights each. The front fascia establishes the pattern for this model, proclaiming to all that this is no inconsequential conveyance.

The sedan’s stately profile is marked with upper character lines running from the headlights to the tail lamps, midriff lines connecting the wheels, and body sculpting located just above the chrome-bedecked rocker panels. A sloping roofline, an ever so slightly rising belt line and distinct alloy wheels are also present. From the rear, this model features oversized combination lamps with LED lights, a raised deck, reflector accents and dual embedded exhaust ports.

Inside, the cabin is bright, cavernous and elegantly appointed. You’ll find wood and aluminum trim with nary a cheap plastic covering in sight. The test model spoiled me with genuine matte finish wood, an essential ingredient for the included Ultimate package. That package also brought in a full-color head-up display, a power trunk lid, a premium 9.2-inch touchscreen with navigation, a 17-speaker Discrete 7 Logic audio system, and an enhanced climate control system.

The Signature package brought in the power tilt and telescopic steering column, a power tilt and slide sunroof, an integrated memory system for the heated and ventilated front seats, automatic dimming side mirrors, LED fog lights with a rearview camera, blind spot detection with rear cross-traffic alert, and a power rear sunshade with manual rear side window sunshades.

And just as the man on television opines, “But that’s not all!,” the tech package added still more amenities. Included were: premium leather seat surfaces, a power driver seat cushion extender, a haptic steering wheel, and an electronic parking brake. Several safety features were added too, including lane departure warning and lane keep assist, automatic emergency braking, and front and rear parking sensors.

A Premium Luxury Sedan

Suffice to say, a Hyundai Genesis without its many adornments might align closer to a Chrysler 300 or a Toyota Avalon, but the full-optioned amenities are what make this premium model extraordinary. Even the look and feel of the switches and knobs conveys its higher-end aura, underscoring the painstaking attention its designers performed on every aspect of the Genesis.

Luxury shoppers in this segment routinely want ultimate power and for them nothing less than the available V-8 would be acceptable. But the V-6 shouldn’t be quickly dismissed as its 311-hp output moves this sedan with competence — the 8-speed transmission shifts smoothly and quickly through the gear ratio.

Choose rear-wheel drive and place this sedan in sport mode, and you’ll enjoy straightforward handling, optimum steering and a thoroughly comfortable ride. Opt for all-wheel drive and the handling quotient improves accordingly.

What you won’t experience is pitching and diving as you handle the curves; braking is firm with no fade detected. Punch the V-6 and you’ll hit highway speeds in about seven seconds. If acceleration is a priority, then choose the V-8 to shave a full two seconds off that time.

Taking it to the Europeans

If the Hyundai Genesis were a mainstream model it would be categorized as a full-size sedan. On the luxury level, it is a midsize model and a competitor to the Mercedes-Benz E-Class, Cadillac CTS, Audi A6, Lexus GS, and the aforementioned BMW product.

Where the previous generation Hyundai Genesis had the looks, but not the driving feel rivaling the prominent European brands, the latest model is vastly improved, thanks in large part to Lotus-assisted chassis improvements, especially in the way the sedan handles.

Those changes combined with the Genesis’ beautiful countenance, high-end interior, and value proposition make this model a competitor. In the final analysis, you don’t need to wait for the Hyundai Genesis to morph into the Genesis G80 to come away with an effective European-like executive sedan.

2016 Hyundai Genesis

Sticker price from $38,750
Price as tested: $50,600
Seats 5
3.8-liter V-6 gasoline engine
311 horsepower @ 6,000 RPM
293 foot-pounds of torque @ 5,000 RPM
3.78 inches bore by 3.43 inches stroke
Engine compression ratio: 11.5-to-1
8-speed automatic transmission
Wheelbase: 118.5 inches
Length: 196.5 inches
Width: 74.4 inches
Height: 58.3 inches
Passenger volume: 107.7 cubic feet
Storage volume: 15.3 cubic feet
Towing capacity: NR
EPA: 18 mpg city, 29 mpg highway
Regular grade gasoline
Fuel tank: 20.3 gallons
Curb weight: From 4,138 pounds
IIHS safety rating: Top Safety Pick+ (2016)
Limited vehicle warranty: 5 years/60,000 miles
Powertrain warranty: 10 years/100,000 miles
Corrosion warranty: 7 years/unlimited miles
Hybrid warranty: 10 years/100,000 miles
Vehicle assembly: Asan, Korea

See Also — On the Road With a 2018 Genesis G80

Hyundai Genesis photos copyright Auto Trends Magazine.

Say Good-Bye to These Models

December 25, 2015 by admin 1 Comment

2015 will signal the end for several models. A few will disappear in 2016 and at least two models are poised to return after a brief hiatus.

2015 Hyundai Genesis Sedan. — The 2015 Hyundai Genesis will morph into the 2017 Genesis G80.

Every year, manufacturers retire models, including some that won’t be replaced. The retro Ford Thunderbird left us in 2005 after a four-year run; the Saturn Sky also lasted for four years, then was canceled as GM killed the brand in 2010.

Over the coming year and in some cases within the coming week, a number of models will drive off into the sunset for the last time. The following is our list of models that won’t see the 2016 model year or will be canceled before the 2017 vehicles are released.

1. Hyundai Genesis and Equus — Say it ain’t so! Yes, the two largest and most luxurious models in the Hyundai product line are on the way out. The good news is that both sedans will be replaced over the next two years by a new “Genesis” line of models, known as the G80 and G90, respectively. Hyundai is now “all in” on a luxury brand as it plans to deliver new models to compete with BMW, Lexus, and Mercedes-Benz under the Genesis marque.

2. Jeep Compass and Patriot — Jeep has not one, but two compact models to draw in customers. Both models are based on the retired Dodge Caliber platform and have sold very well, especially over the past year. However, Jeep plans to drop both models when a new compact SUV arrives late in 2016. Word has it that the new model may retain the name of one of the outgoing vehicles. Jeep hasn’t said which one will survive, but we’re thinking Patriot has a better chance than Compass.

3. Lincoln MKS — Based on the same platform underpinning the Ford Taurus, the Lincoln MKS had European aspirations — especially in all-wheel drive garb — but it never measured up. The MKS has been a perennial underseller since its introduction and will be retired next year to make way for the Lincoln Continental. The Continental is based on a stretched Ford Fusion platform, but it has the style, amenities, performance and the name cache that no three-letter Lincoln nomenclature can match.

4. Mazda Mazda5 — Mazda seems to have the Midas touch when it comes to vehicle manufacturing, presenting winners with its Miata MX-5 roadster, Mazda6 midsize sports sedan, and the CX-3, a compact SUV. Like other manufacturers, minivan or small multi-purpose vehicle offerings such as the Mazda5 have struggled. That’s too bad because when it comes to SUVs, Mazda has found much success. Still, the minivan segment is barely hanging on and for those customers who want one, models such as the Kia Sedona, Chrysler Town & Country, and Toyota Sienna offer more room and better utility than does the retiring Mazda.

5. Mitsubishi Lancer Evo — Mitsubishi fans have been in an uproar ever since this manufacturer killed off its performance division in 2010. The writing was on the wall five years ago: the Lancer Evolution would eventually be retired. That retirement is here, following a 2016 refresh of the Lancer. Although the mainstream compact Lancer sedan will continue for the foreseeable future, its performance variant has been nixed.

6. Nissan Xterra — Remember the Nissan Xterra? You may have thought that this model had already disappeared, but it has been hanging around in the face of declining sales. As the last body-on-frame midsize SUV produced by this manufacturer (the Pathfinder transitioned to a crossover in 2014), it is going the way of all other models except for the Toyota 4Runner. Like the 4Runner, the Xterra is based on the brand’s midsize truck. Quite simply, Nissan didn’t want to invest additional monies propping up a model that has long lost its mass appeal.

7. Toyota Venza — Toyota, along with Honda experimented with the wagon-like crossover segment, but soon realized the market wasn’t there. Maybe both manufacturers should have considered the Chrysler Pacifica, another tall wagon that was canceled in 2008 following a five-year model run. Both the Toyota Venza and the Honda Accord Crosstour are gone after 2015.

A Look at the Rest

Other models being terminated include the Land Rover LR2, Jaguar XK, the Mini Roadster and Coupe, and the Volkswagen Eos. The Land Rover Defender is also on that list, but a new model should return after a two-year hiatus.

As far as buying a discontinued model, you have a few things to consider:

1), Such models typically are heavily discounted in a bid to clear dealer lots to make way for new vehicles; and

2) As long as the manufacturer maintains a market presence, obtaining parts is not an issue. However, keep in mind that some models may cost you more if the vehicle is imported and the discontinued model is scarce in the first place.

Lastly, if you buy a discontinued model, the new vehicle warranty is still in effect. That’s the peace of mind consumers want as the bumper-to-bumper, powertrain, and rust warranties remain in effect.

Hyundai Unveils its Genesis Way

November 9, 2015 by admin 1 Comment

Hyundai is going its own way as it launches its Genesis marque.

The 2016 Hyundai Genesis sedan will become the 2017 Genesis G80.

In case you hadn’t heard, Hyundai has decided to launch its own luxury brand and will call it “Genesis,” the same name it uses for one of its high-end sedans. The Genesis brand will roll out in 2017 as two of its current models the Hyundai Genesis and Equus become the Genesis G80 and G90, respectively.

Korean automaker Hyundai has long considered its luxury options and originally decided its Hyundai nameplate was good enough to battle Lexus, Cadillac, Mercedes-Benz and other luxury makes. But Genesis will not do something competing manufacturers have done — make a clean break from its mainstream brand.

Genesis Builds on Hyundai

Instead, Hyundai will rely on its existing dealer network to promote the Genesis brand with the new models offered under the same roof. Where Japanese makes such as Toyota have worked diligently to launch and maintain Lexus as a separate entity, Hyundai is less concerned about the possible confusion and seems intent on building upon that.

Gradually, Hyundai plans to launch a series of rear-wheel drive models bearing the Genesis name and is poised to take on such models as the Mercedes-Benz C-Class, the Cadillac CTS, and the Lexus LS, to name a few. Once the original three sedans are launched, the automaker plans to add a coupe, crossover, and an SUV. Targeted models may include the BMW 4 Series, Audi Q5, and the Infiniti QX80.

2017 Genesis G80.

To get there, the Genesis brand will rely upon the capable shoulders of Belgian car designer Luc Donckerwolke, formerly with Bentley. Donckerwolke left the Volkswagen Group a few months before the Volkswagen diesel scandal was revealed and will be tasked with presenting a new look for the Genesis brand.

Hints of that look may have already been seen in the Hyundai Vision G Concept Coupe unveiled at Pebble Bech this year, a four-door model that may point to the upcoming G80. Regardless, in Donckerwolke, Hyundai gains a designer whose handiwork appears on such models as the Lamborghini Murciélago and Bentley’s Flying Spur.

Strong Challengers in Place

Moving directly into the luxury realm is not without its challenges as well as its challengers. Several brands are deeply entrenched — Lexus, Mercedes-Benz and BMW are a few that come to mind. Audi, despite its Volkswagen problems, is backed by the largest car manufacturer in the world. Cadillac and Lincoln are now receiving billions of dollars in new funding from GM and Ford, respectively. Even smaller brands such as Jaguar, Land Rover and Volvo have gained new life as new owners have stepped in. Acura and Infiniti will also stand in the way.

But challenge is not a word that has stopped Hyundai in the past. In the 1980s, when it was new to the car making business, its Excel subcompact introduced low-cost Korean cars to the US market. But it brought with it a reputation for shoddy build quality, something Hyundai has gradually overcome.

Today, the Hyundai and sister Kia brands are near the top of the leading quality surveys. Further, the parent Hyundai Kia Automotive Group is now the fourth largest car manufacturer in the world. Hyundai-Kia has the muscle and the deep pockets to go with it.

Product Mix and a Changing Market

Perhaps the biggest challenge for the Genesis marque may be its product mix. By going with sedans initially, it will miss out on crossovers and SUVs, body styles that are contributing to the rise of not a few luxury brands. Then again, by the time Genesis gains hold, consumer tastes might shift again, especially if fuel prices rise and luxury cars become popular again.

See Also — Midsize Luxury Sedan: 2017 Genesis G80

Lotus Announces New Models, Plans US Return

June 29, 2015 by admin Leave a Comment

Lotus Cars says that it is moving its US operation and is readying the Evora 400 for the US market. A limited-edition Lotus 3-Eleven model will go into production in February 2016.

Lotus Evora 400

A federally compliant Lotus Evora 400 arrives at the end of 2015.

The Lotus automotive brand has been on a new product hiatus in the United States since 2014, the last year it made a model for the American market. Some 45 dealers scattered across the country are still selling the 2014 Evora, but no 2015 vehicle was imported because the government’s smart airbag waiver ended last summer. Without the required waiver, future new model sales came to a halt.

While the waiver permitted Lotus to circumvent an important federal government safety requirement, subsequent models could not be modified in time for the 2015 model year. Thus, Lotus was forced to sit on the sidelines this year while it readied a fully compliant model.

Lotus Evora 400

A new Lotus Evora 400 is on the way and will arrive stateside in December for the 2017 model year. It is essentially an update of the current design, representing a moderate refresh at that. Lotus unveiled the sports car at the Geneva Motor Show this past March.

Under the hood a 3.5-liter, supercharged V-6 engine making 400 horsepower and 302 foot-pounds of torque will power the sports car. That represents a 55-horsepower boost over the previous model and with its weight coming in at 3,119 pounds (down from 3,168 pounds), the new model should easily attain its projected 0-to-60 mph time of 4.1 seconds. Its top speed will be 186 mph.

Evora 400 buyers will still have a choice of 6-speed manual and six-speed automatic transmissions, the latter with shift paddles. Select the manual edition and your Lotus will get its first-ever limited-slip differential. Lighter wheels, larger brakes and a more refined cockpit are among the more significant changes to the new model.

Besides bringing the Evora 400 to the market, Lotus announced that it will be relocating its US headquarters to Ann Arbor, Michigan, from Lawrenceville, Michigan. The pending move will allow the company to consolidate its operation with its Lotus Engineering arm already located in Ann Arbor.

The automaker will continue to build its Elise and Exige models for other markets and has also set its eyes on building derivatives of all three product lines.

Lotus 3-Eleven

Road and track versions of this Lotus 3-Eleven will be built.

Lotus 3-Eleven

At the Goodwood Festival of Speed (UK) last week, Lotus took the wraps off of the 3-Eleven, powered by the same supercharged engine in the Evora 400, but making 450 horsepower. Furthermore, the race version weighs just under 2,000 pounds (dry weight) and is expected to go from 0 to 60 mph in under three seconds.

Production of the Lotus 3-Eleven begins in February 2016 and will be limited to 311 models. The street-spec model will retail for about $129,000 and the track version for $151,000.

Lotus 3-Eleven

Lotus SUV

Yet another model is in the planning stages and should do for the brand what it has done for Porsche: bring an SUV to a sports car line. The SUV, sized relative to the Porsche Macan, will serve China first and if successful find its way to Britain reports Auto Express. There is no word whether the US market would follow.

Founded in 1952, the Lotus marque has survived the death of its founder, Colin Chapman, financial troubles and is on its third international owners. Indeed, General Motors owned Lotus for seven years beginning in the 1980s before selling it to Romano Artioli and Bugatti in 1993. In 1996, its current owner — Malaysia’s Proton Holdings Berhard — took over.

Besides building its own models, Lotus has cooperated extensively with other manufacturers, including designing the chassis for the DeLorean DMC-12, supplying the chassis for the Aston Martin DB9, and created a concept Dodge EV for Chrysler. Most recently Lotus has contributed its handling and steering expertise to better the Hyundai Genesis sedan.

Lotus 3-Eleven

See Also — Possible Lotus Sale Is No Surprise

Thin SUV Line is Hurting Hyundai

June 11, 2015 by admin 1 Comment

Hyundai’s weakest link is its line of utility vehicles. As other manufacturers have the right product in place, Hyundai finds itself scrambling to compete. A Genesis-based SUV may be in the works, but it may not be the right product or the right time.

Hyundai’s smallest SUV is its compact Tucson line.

It was never supposed to be this way. In the Hyundai Kia Automobile Group pecking order, Hyundai was to always outsell Kia by benefit of developing the platforms, powertrains and technologies that ultimately drive both product lines.

In May 2015, Kia nearly did the unthinkable: overtake Hyundai in US vehicle sales. Indeed, the smaller of the two paired Korean automakers sold 62,433 units to Hyundai’s 63,610, a margin of 1,177 vehicles (seeGoodCarBadCar). Hyundai still has a 47,000 plus unit lead for the year, but Kia has been enjoying year over year gains as Hyundai sales slip and its market share shrinks with it.

The two manufacturers offer a nearly identical product line, but Kia designs are unique. That customers are increasingly drawn more to the Kia Optima than to the Hyundai Sonata is one possible explanation, but it fails to underscore Hyundai’s greatest weakness: a thin SUV line.

In fact, that line up is comprised of just two models — the compact Tucson and the midsize Santa Fe. In the United States, Santa Fe is sold in standard and stretched wheelbase variants, the latter marketed as the Grand Santa Fe in some markets.

Clearly, Hyundai is failing to harness one of the more significant auto trends of our time: a consumer shift to utility vehicles. And that shift really has nothing to do with gas prices. Instead, the fuel economy ratings of some SUV models are downright efficient.

Hyundai may build an SUV based on this Genesis’ platform.

For example, let’s take a look at a pair of Honda models.

The 2015 Honda Civic is rated as high as 30 mpg city and 39 mpg on the highway. At the same time, the 2015 Honda CR-V is EPA-rated 27 mpg in the city and 34 mpg on the highway.

Both models are compact vehicles, but the overall mileage difference is just 4 mpg — 33 mpg combined for the Civic and 29 mpg for the CR-V. Just a few years ago the difference would have been more like 10 mpg. But not anymore. At least not for Honda, Mazda, Chevrolet and a few other manufacturers.

On the other hand, Hyundai has yet to fully harness its SUV potential. Besides its thin product line, its own compact SUV offering (Tucson) is EPA-rated at 23 mpg in the city and 29 mpg on the highway. That’s 6 mpg highway (4 mpg combined) below the segment-leading Mazda CX-5. Moreover, its compact Elantra sedan is rated at 28 mpg in the city and 38 mpg on the highway. The Elantra makes a combined 32 mpg to the combined 25 mpg for the Tucson, a difference of 7 mpg.

The Santa Fe Sport is the smaller of Hyundai’s larger SUVs.

Not only is Hyundai’s SUV line thin, but its products are being beaten on the fuel economy front. That’s a recipe for weak sales.

This week, Automotive News said that Hyundai is considering building a larger SUV, one based on the rear-wheel drive Genesis sedan’s platform. That vehicle, if built, would take two to three years to hit the market and would target premium shoppers, including BMW and Mercedes-Benz customers.

It should be pointed out that Hyundai has gone with a larger SUV in the past and failed. Specifically, it offered the Hyundai Veracruz for six model years — 2007 to 2012, a vehicle applauded for its value and top crash scores, but derided for its plain styling. Kia also sold a version of the Veracruz for just one year — the Borrego. Poor sales assured that this model was “one and done.”

Inasmuch that Hyundai recognizes its SUV weakness, by the time the big SUV hits the market, gas prices may surge and reduce demand for such a model. To put it another way, it could be a case of “too little, too late.” And at a development cost that Hyundai may never recoup.

Perhaps a better approach for Hyundai would be a three-prong strategy to improve its existing SUV line as well as bringing in an entirely different vehicle. In view of fuel price instability, such a strategy could reinvigorate Hyundai and might offer some much desired separation from Kia.

Here’s an SUV blueprint to consider:

First, improve the Tucson’s fuel mileage.

As it stands right now, the Tucson is getting walloped on the mpg front. An mpg difference of 1 or 2 mpg isn’t that big of a deal, but the Hyundai Tucson has a 5 mpg void between it and the Mazda CX-5. You can read our review of the Tucson here.

Second, the stretched wheelbase Santa Fe needs to be overhauled and renamed.

In some markets, it is known as the Grand Santa Fe. No such distinction exists in the US. That makes it harder for Hyundai to market the vehicle.

Hyundai would be better served by restyling the larger Santa Fe and giving it a different name. That’s a strategy that has worked with Ford in the Edge and Explorer, something Hyundai should follow.

Please read our review of the standard wheelbase model here and the stretched wheelbase model here.

Third, while I have no doubt that a Genesis-based SUV would excel, It isn’t the right product. At least not now.

What Hyundai could do is cast its eyes on the lower end of the market, specifically the smallest SUVs. Notably, the subcompact SUV segment is just now catching on and is a wave Hyundai is not riding.

We’ve had the Nissan Juke for several years, but now the Honda HR-V, Jeep Renegade, Fiat 500X, Chevrolet Trax and the Mazda CX-3 are out there. Its a volume business, one with higher profit lines than comparable subcompact cars.

A Hyundai SUV model based on the Rio platform would sell for thousands of dollars more than the Rio. Furthermore, customers would be more likely to buy this model than a big SUV regardless of where gas prices are headed.

Hyundai Santa Fe

The Hyundai Santa Fe is offered in two- and three-row versions.

Discerning customers know that Hyundai has improved its products significantly since the beginning of the millennium. Those models are stylish, usually efficient and offer premium features at a competitive price. Consequently, its SUV weakness is costing Hyundai sales and may lead to further erosion unless this automaker resolves its SUV dilemma.

As far as Kia someday passing Hyundai, at least in US sales, that possibility is mostly a matter of pride for both brands. Joined at the hip since Hyundai bought Kia in the late 1990s, the fortunes of one is tied to the other, with the tide rising and falling concurrently for these two marques.

Fabulously Unfrozen: February 2015 US Auto Sales

March 4, 2015 by admin Leave a Comment

The eastern half of the nation has had quite a winter, with record cold, significant snows and paralyzing ice storms extending deep into the south. Despite the difficult conditions, consumers visited US showrooms in strong numbers, helping to propel February 2015 auto sales in a positive direction.

Truck sales paced GM in February.

Neither treacherous winter conditions, nor rising fuel prices kept consumers from US auto dealer showrooms in February. However, earlier rosy sales projections did not pan out quite the way analysts had hoped as manufacturer sales were tempered almost across the board. Notwithstanding the projections, Toyota Motor Sales notched a 13.3 percent increase in the month on the strength of robust light truck and Lexus sales.

The Detroit Three

Meanwhile, the Ford Motor Company posted a 2 percent decline for the month, even as demand for the F-150 pickup truck, the new Transit van and the Ford Mustang remained strong. Sales for its car lines and utilities were spotty, contributing to the brand’s decline. Lincoln sales tumbled by 7.5 percent, nearly erasing January’s gains.

General Motors enjoyed brisk truck sales with deliveries increasing by 36 percent year over year. GM sales rose by 4.2 percent based on strong demand for GMC products and positive action for Chevrolet. Buick and Cadillac, however, experienced losses with the latter falling by 12.6 percent for the month.

It is now 59 consecutive months whereby Fiat Chrysler (FCA) has been experiencing year-over-year sales gains. February’s rise narrowed to 6 percent with the Jeep brand up by 21 percent and the Chrysler brand up by 13 percent. The Ram brand climbed by 12 percent, but both the Fiat and Dodge brands saw sales pull back.

“In spite of snow and bitter cold that slowed auto sales in many regions of the country, FCA US still turned in a 6 percent sales increase and extended our year-over-year sales streak to 59-consecutive months,” said Reid Bigland, Head of U.S. Sales. “Even with tougher year-over-year sales comparisons in 2015, our vehicle lineup continues to produce record sales results.”

Lexus NX

The all-new NX continues to gain in acceptance with buyers.

The Japan Top Three

Toyota Motor Sales enjoyed a double-digit increase as Camry, Corolla and RAV4 continued to pace the Toyota brand. Scion sub-brand sales, however fell by 14.7 percent as total Toyota brand sales increased by 7.9 percent for the month. The Lexus marque enjoyed robust demand for its RX crossover, GS sedan and for its all-new compact NX crossover model.

American Honda said that its sales rose by 5 percent in February on the strength of a 4.1 percent increase for the Honda brand and a 12.5 percent increase for the Acura emblem. Strong demand for the subcompact Fit, the usual strong interest in the compact CR-V crossover and robust truck sales paced the Honda brand. Acura benefited from a strong interest in its RDX and MDX utility vehicles.

The Nissan Group reported a 2.7 percent sales expansion for February on the strength of hearty interest in its Infiniti marque. Indeed, Infiniti car sales were especially vigorous, rising by 25.1 percent, including a 77.2 percent increase for the Q40. Nissan brand sales rose by 1.1 percent, due largely to a 24.4 percent increase in Nissan Sentra sales for the month.

Hyundai and Kia Report

Hyundai Motor America has had its share of struggles lately, trailing the gains enjoyed by the market leaders and losing market share. However, last month the Korean automaker had its best month ever etas sales rose by 7 percent. The Sonata sedan, Santa Fe crossover and Genesis luxury sedan were key contributors for the month.

“Even the treacherous weather across the country couldn’t keep shoppers away from dealerships in February,” said Bob Pradzinski, vice president, national sales for Hyundai. “With consumer spending and confidence continuing to grow at the fastest pace in years, customers bought Hyundais in record numbers, giving us the best February in our history.”

Kia reported sales of 44,030 units last month, up 6.8 percent over last Feb. The Kia Optima (midsize sedan), Soul (utility vehicle) and Sorento (crossover) continue to pace the market. Sales for its Sedona minivan gained fivefold for the month.

Hyundai Genesis

Sales for the Hyundai Genesis sedan rose sharply in February.

Volkswagen and Subaru Report

Volkswagen brand sales fell for the month, continuing a trend that has dogged this German manufacturer for the past few years. Feb. sales fell by nearly 5.2 percent. However, the subcompact Golf line continues to show much promise as sales surged by 141 percent for the month. The new Golf R was a big contributor as well as the Golf EV.

Subaru continued with its stampede, enjoying brisk sales on 41,358 vehicles sold or up 18.5 percent. All models except the BRZ saw an increase for the month. The Legacy midsize sedan realized an increase of 68 percent for the month and Outback sales were up by nearly 30 percent.

The Luxury Market Remains Strong

Continued strong interest in the luxury brands helped fuel sales for Audi, BMW, Mercedes-Benz and Porsche. Audi sales rose for the 50th consecutive month, increasing by 5.3 percent based largely on sales of its new A3 sedan. The BMW marque’s sales rose by 14.5 percent as interest in its X5 crossover and 2 and 4 Series lines propelled sales. Mercedes-Benz reported its best Feb. ever as sales rose by 4.5 percent. Potent interest in its CLA- and C-Class models helped Mercedes. Porsche sales edged lower by 0.9 percent for the month.

Elsewhere, Mazda sales rose by 5.4 percent, Volvo sales increased by 0.5 percent, and Jaguar Land Rover sales increased by 13.8 percent. Mitsubishi sales rose by 26 percent for the highest gain by any manufacturer for the month.

Mazda sales February 2015

Mazda sales kept pace with the market in February 2015.

February 2015 Sales: Up 5.3 Percent

To sum up, US sales roses by 5.3 percent in a month beset by bad weather. Motor Intelligence (Autodata Corp.) reported 1,257,619 models sold; year-to-date sales are up 9.2 percent.

Are Diesels Forthcoming for Hyundai Kia?

October 14, 2014 by admin Leave a Comment

Korean manufacturers look at diesel deployment stateside.

Drive any Hyundai and Kia product within North America and it most likely is powered by a gasoline direct injection engine. Yes, there is the Sonata Hybrid, an Optima Hybrid and a Fuel Cell Tucson, but more than 99 percent of all vehicles the two Korean manufacturers sell here are gas-powered cars.

Diesels have not been introduced for the market, although they’re available in Europe, Asia and elsewhere. Hyundai Kia once considered them for North America, but determined that they were not a right fit according to WardsAuto.

Fuel Economy Mandate

Wards, however, says that Hyundai Kia is revisiting diesels, seeing “some value” in them worthy of “strong consideration.” That consideration isn’t due entirely to customer demand, instead the company is evaluating how it will meet the ever-increasing fuel economy mandates set in place by the federal government a few years back. That mandate requires manufacturers to offer a fleet average 54.5 mpg by 2025 with yearly and incremental changes leading up to the threshold.

Like other manufacturers, Hyundai Kia must justify the cost of selling diesels in the United States. US emissions standards are among the strictest in the world, requiring manufacturers to make costly modifications to treat diesel emissions. Diesel fuel also costs more than regular gasoline — averaging about one dollar per gallon more in some markets to half that elsewhere.

Nevertheless, diesels offer a huge fuel economy edge, typically 30 to 35 percent better than comparable gasoline engines. They’re also easier to maintain — no spark plugs, for instance — and usually last longer. Torque comes in higher too, what is especially noticeable at highway speeds when you’re ready to zip past that rig blocking your view.

The Diesel Market

Hyundai Kia will likely take a multi-prong approach as it seeks to meet the elevated fuel economy ratings. In the short term, the company may turn to cylinder deactivation, introduce plug-in electric vehicles and make use of exhaust heat recovery. Further out it will rely on 9- and 10-speed automatic transmissions to extend fuel economy.

Just where in its portfolio lines Hyundai Kia might introduce diesel engines isn’t yet known. Among small cars, the Volkswagen Jetta dominates the segment with the Chevrolet Cruze a token player, at least among diesels. Further up the line the company could roll out a diesel with its Kia Sorento midsize crossover just as it plans to do in Europe.

Hyundai Kia and Premium Models

With Hyundai and now Kia having entered the premium segment, the two brands each have a pair of pricier models that could benefit from diesels. Hyundai has the Genesis and Equus; Kia has the Cadenza and K900. Auto Trends has tested each model — except for the Cadenza — and can see the benefit of a diesel option, especially in the Hyundai Genesis. The Genesis is Hyundai’s strongest entry among European-like models with all-wheel drive now available. Hyundai Kia was considering a 3.0-liter six cylinder diesel engine for its large Veracruz and Borrega utility vehicles, but canceled those models along with its diesel engine plans. Its engine plans could be resurrected to help power future Genesis and Cadenza models.

No matter how the Korean duo approach diesels, they’ll be part of the greater transformation of the auto industry, one that will yield ever more efficient vehicles with advanced cutting-edge technologies. Vehicle electrification is part of that movement as are advanced powertrains, light weighting and perhaps a few technologies we haven’t even imagined yet.

Attainable Opulence: 2015 Hyundai Genesis

October 6, 2014 by admin 2 Comments

Wow.

There are very few cars I test drive that surprise me. I expect that certain vehicles will stand head and shoulders above the pack, including the Porsche Cayman among sports cars and the Toyota FJ Cruiser among 4×4 models. But I must tell you that Hyundai has trotted out the wow factor for me several times in the past year, especially in the Hyundai Genesis sedan, what is all new for 2015.

My previous experience with the Genesis was an all-too-quick test drive at a local Hyundai dealer nearly five years ago. I liked the sedan a lot, but I wasn’t seriously considering buying one. What I did find was a sedan that offered a lot of content for the price, a budget-priced alternative to the BMW 5 Series. That earlier model was a decent BMW competitor, but if you were looking for a high-end dealer experience, you wouldn’t find one in the Genesis.

2015 Hyundai Genesis

Luxury Under the Hyundai Banner

The Genesis sedan — along with the Genesis coupe and the top-end Equus — are three models that could just as easily be sold under a separate brand umbrella along the same lines as Toyota does with Lexus and Nissan with Infiniti.

Hyundai’s strategy, however is different: the Korean automaker is satisfied with delivering premium models under one brand name. That effort hasn’t hurt sales although in the eyes of discriminating buyers — status seekers who want the Mercedes-Benz three-pointed star or the stylish Lexus emblem — Hyundai may not go far enough.

But there are tens of thousands of buyers who want the Genesis and its upscale stablemates, with 55 percent of Genesis customers representing conquest sales, including former Lexus and Mercedes-Benz owners reports Automotive News. Hyundai is fully aware that its strategy is unique to an industry that prizes brand delineation, but the good here (sales) is certainly outweighing the bad (prestige). At least for right now.

2015 Hyundai Genesis

The first generation Hyundai Genesis was sold from 2009 to 2014. It was the initial premium Hyundai model sold in North America and was followed in succeeding years by the Genesis coupe and the Equus. You should know that the Genesis sedan and coupe share a name, but are nothing alike.

The big changes for 2015 Genesis are inside and out, although the same engines found in the first generation model return as does the eight-speed automatic transmission.

As tested, a 2015 Hyundai Genesis 3.8 edition was provided, with a base price of $38,000. The 3.8 represents the engine size, a 311-horsepower V-6. Also available is a 5.0 edition, retailing from $51,500. It has a 5.0-liter V-8 engine making 420 horsepower.

Rear-wheel drive is standard with this model; all-wheel drive is available ($2,500 upgrade) for the first time and can be had with the V-6 edition only. An all-wheel drive V-8 version should arrive in the next year or two, perhaps sporting the previously used R-Spec mantle.

2015 Hyundai Genesis

Fluidic Sculpture 2.0

Hyundai’s design language, dubbed fluidic sculpture, has been applied across the model line since the previous generation Sonata sedan rolled out five years ago. That language has since been updated and now carries a 2.0 designation. In the Hyundai Genesis the latest design provides a more polished and modern look marked by a strong, but elegant grille flanked by automatic headlamps and LED daytime running lights.

The Genesis’ stance is strong, refined and limousine like, marked by tasteful profile sculpting near the top of the doors and across the rocker panels. To the rear are beautifully designed wrap around tails lamps and integrated dual exhaust ports. This sedan sits on 18-inch alloy wheels.

2015 Hyundai Genesis

Longer Wheelbase, More Interior Room

The second generation Genesis is three inches longer between the wheels although its overall dimensions are about the same. That extra room benefits passengers who have almost as much interior room as found in the Equus. Measuring just seven inches shorter than Hyundai’s flagship model, the current Genesis makes the Equus seem old.

Inside, the delights continue. Only you may swear that you’re in a Lexus or a Mercedes-Benz when slipping behind the wheel of the 2015 Hyundai Genesis.

But before you get inside, the Genesis senses your approach when your key fob is in hand. The side mirrors, what automatically pull in when you lock your car, move into position, flash and beep as you make your approach. If your approach is made directly to the rear of the car, the rear lights will flash and you’ll hear several beeps as the trunk opens. No swishing the leg under the rear bumper ala Ford to get the trunk to open.

The interior is large, limousine-like and very comfortable. Genuine leather seating, real wood trim with matte finish and thick aluminum accents are just for starters. You also get rear side window sunshades, a power rear sunshade, heated and vented front seats, heated side mirrors, BlueLink infotainment and a navigation system.

Pricing and Package Upgrades

This model also features keyless entry, push button start, a tilt and telescoping steering wheel column, front power seats with lumbar support, an automatic dimming rear view mirror and a seven-speaker audio system. Three package upgrades brought the test model’s final price to $49,950, what added in many of the amenities found standard in the 5.0 edition.

An Ultimate package ($3,500) brought in the wood trim, a larger 9.2-inch center display screen, a 17-speaker Lexicon audio system, the power trunk lid and a head-up display. For another $3,500 you get a technology package, what includes premium leather seats, a number of safety features — including lane departure warning and lane keep assist, high-beam assist, an electronic parking brake and smart cruise control. You can also choose the signature package, what brings in the sunroof, blind spot detection, the sunshades and ventilated seats among other amenities. You can only choose the tech or signature packages if you opt for the Ultimate package first.

2015 Hyundai Genesis

As beautiful as the Genesis’ interior is, Hyundai kept things simple by opting for a clean, but modern design for the instrument panel and the center console. The panel features traditional tachometer and speedometer displays flanking a large, driver information center. Much of the information found on the center screen can appear on the digital screen, including music and navigation displays.

The Genesis has cruise and secondary control switches on the steering wheel. Traditional buttons and knobs surround a numberless and stately clock face centered within the console. Voice and touchscreen control of the center display screen is also possible.

The driver’s seat is as comfortable as you would expect in a premium sedan. Adjust the steering column to suit your needs, buckle up and you’re ready to experience the Hyundai Genesis.

2015 Hyundai Genesis 3.8

View manufacturer details and pricing

2015 Hyundai Genesis

Capable V-6 Engine

The current Genesis roughly parallels the defunct Lincoln Town Car in size, but with shorter overhangs. With its smaller standard engine, the Hyundai Genesis still manages to deliver a higher horsepower rating than the last Lincoln Town Car (311 hp v. 284 hp) and that alone should dispel concerns by some that the V-6 isn’t enough to power this big sedan.

I found the V-6 to be energetic, capable and sufficient for the Genesis. Like the V-8, the standard engine employs continuously variable valve timing and direct injection without turbocharging. You get good off the mark acceleration and never lack power when you’re on the highway, especially when passing. Consider the V-8 only if you prize performance and the added continuous damping control suspension system that comes with it.

Hyundai made the Genesis quiet, comfortable and its suspension soft, in keeping with what many buyers want. This model is outfitted with front and rear stabilizer bars, an independent front and rear suspension and performance gas shock absorbers. Early on in the Genesis’ development, Hyundai engineers reached out to Lotus for assistance to enhance driver feedback. Lotus came back with advice on improving the steering, with Hyundai incorporating those changes to help make this model more BMW “M-Like” than before. Whereas the first generation model was closer to the earlier Lincoln in drive and feel, the current model has transitioned nicely to compete with what the big European sedans deliver.

2015 Hyundai Genesis

Taking on the Competitors

Hyundai has unquestionably raised the bar with the current Genesis. Certainly, you can shop the Mercedes-Benz E-Class, BMW’s 5 Series, the Audi A6, Cadillac CTS and Lexus GS when considering a sedan in this class. What you won’t find is anything near the Genesis’ sub-$50,000 price for this fully-loaded Korean bargain. Wow indeed.

2015 Hyundai Genesis 3.8

Sticker price from $38,000
Price as tested: from $49,950
Seats 5 occupants
3.8-liter 24-valve V-6 gasoline engine
311 horsepower @ 6,000 rpm
293 foot-pounds of torque @ 5,000 rpm
3.78 inches bore by 3.43 inches stroke
Engine compression ratio: 11.5-to-1
8-speed automatic transmission
Wheelbase: 118.5 inches
Length: 196.5 inches
Width: 74.4 inches
Height: 58.3 inches
Passenger volume: 107.7 cubic feet
Storage volume: 15.3 cubic feet
Towing capacity: NR
EPA: 18 mpg city, 29 mpg highway
Regular grade gasoline
Fuel tank: 20.3 gallons
Curb weight: From 4,138 pounds
IIHS safety rating: Top Safety Pick+ (2014)
Limited vehicle warranty: 5 years/60,000 miles
Powertrain warranty: 10 years/60,000 miles
Corrosion warranty: 7 years/Unlimited miles
Vehicle assembly: Asan, Korea

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