Hyundai takes aim at luxury automakers

Blind_Io

Blind_Io

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SEOUL - Hyundai Motor Co., South Korea's top auto maker, said on Monday it planned to launch a car aimed at the U.S. premium segment next year.

Hyundai, the world's No.6 auto maker along with its affiliate Kia Motors Corp. by sales volume, is targeting the global luxury car market in a bid to upgrade image and convince the public that the company does not just make economic cars.

"We will launch the 'BH' in the first half of 2008 in South Korea and will begin to sell the premium sedan in the United States, the major export market for the model, late 2008," said Hyundai spokesman Jake Jang, referring to the car's code-name.

The new model, which Hyundai hopes will compete with Toyota Motor Corp.'s Lexus, will have a V-8 engine, he added.

Hyundai aims to sell about 20,000 units of the BH in the United States a year, another Hyundai official said but declined to comment on the local market target.

Hyundai needs to add premium models, which carry higher margins, to its line-up to boost profits amid unfavorable business conditions such as a stronger won currency and weaker domestic demand, analyst say.
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http://www.cnn.com/2007/TECH/03/19/hyundai.luxury.reut/index.html?eref=rss_topstories

SEOUL, South Korea (Reuters) -- Hyundai Motor Co., South Korea's top auto maker, said on Monday it planned to launch a car aimed at the U.S. premium segment next year.

Hyundai, the world's No. 6 auto maker along with its affiliate Kia Motors Corp. by sales volume, is targeting the global luxury car market in a bid to to upgrade image and convince the public that the company does not just make economic cars.

"We will launch the 'BH' in the first half of 2008 in South Korea and will begin to sell the premium sedan in the United States, the major export market for the model, late 2008," said Hyundai spokesman Jake Jang, referring to the car's code-name.

The new model, which Hyundai hopes will compete with Toyota Motor Corp.'s Lexus, will have a V-8 engine, he added.

Hyundai aims to sell about 20,000 units of the BH in the United States a year, another Hyundai official said but declined to comment on the local market target.

Hyundai needs to add premium models, which carry higher margins, to its line-up to boost profits amid unfavorable business conditions such as a stronger won currency and weaker domestic demand, analyst say.

Shares in Hyundai ended up 0.15 percent at 68,500 won, compared to a 1.09 percent gain in the broader market.
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It takes a shot and probably misses by a mile.
 
They used to say the same thing about Toyota and Honda, but they have both done well in the luxury car market.
 
People thought that about Toyota and Datsun/Nissan, too.

It is worth noting that Toyota execs have stated that is *Hyundai* that keeps them up at night with worry.
 
The big question is, will it carry Hyundai badges, or is 'BH' their luxury brand? The Hyundai badge simply won't work on a luxury car, but a new brand is worth a shot (worked for Lexus).
 
fbc said:
The big question is, will it carry Hyundai badges, or is 'BH' their luxury brand? The Hyundai badge simply won't work on a luxury car, but a new brand is worth a shot (worked for Lexus).
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I'm guessing they will create a new brand for their luxury cars. It's what everyone else in the market does (Honda/Acura, Nissan/Infinity, Ford/Lincoln, Chevy/Caddilac, VW/Audi, etc.).

What I'm interested in is the specs of the BH. They already have a 3.8L V6 with 263 hp; I'm curious as to how much power they'll be able to get out of the V8 they're planning, and whether or not the BH will have rear wheel drive.

EDIT2: It apparently is going to be RWD! I found a thread with loads of spy pics here.
 
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Their new Santa Fe is a good car. Hmmm I think that the Toyotas of this world should look over their shoulders, may be not now nor in 5 years time but give 'em 10 years and I am sure that they will be there or there abouts.
 
There's a fair chance that big Hyundai will succeed in the US but I'm not surprised that Europe isn't mentioned with one word as a probable additional market.
 
The Hyundai coupe is quite good so I guess they can make good cars if they want. But they don't have to bring it here, thanks Hyundai.
 
They won't. Cadillac and Lexus should have proven them by now that the only luxurious vehicles that can be sold in Europe are European.
 
You've got my attention. Now let's see how they do.
 
Blind_Io said:
They used to say the same thing about Toyota and Honda, but they have both done well in the luxury car market.
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Spectre said:
People thought that about Toyota and Datsun/Nissan, too.
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All true but Hyundai certainly seems to be a class lower than those manufacturers so I think that'll make it even more difficult.

Then theres the biggest issue of brand image...that will take a while to wear off. It did for Lexus and it was lucky enough to have Toyota as a base for its cars.
 
SL65 said:
All true but Hyundai certainly seems to be a class lower than those manufacturers so I think that'll make it even more difficult.

Then theres the biggest issue of brand image...that will take a while to wear off. It did for Lexus and it was lucky enough to have Toyota as a base for its cars.
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It's easy to say that now. When Toyota and Honda first entered the US market they were ridiculed by the Big Three for making small "cheap" cars - that mistake cost them dearly. Honda and Toyota quietly became the best cars on the road, eroding and eating away at the Big Three from within. While this was quietly happening, Detroit, secure in their arrogance, simply refused to believe that anything was amiss. The gas crisis of the 70's kicked off the import market, but they prevailed through better manufacturing and pioneering the "lean assembly line" - a technique that American car makers are still trying to perfect.

Mark my words, Hyundai is going to be the next giant. They already are into heavy machinery. Their attack on Honda and Toyota will be on all fronts and if the Japanese and Detroit are not worried yet, they should be.
 
The Korean car makers are really stepping up to the plate. There was a report in The Age before the 'public' motor show began that Euro car makers had been scouring over the Hyundai's, comparing quality etc. This is surprising in so far as two years ago it would have been the Asian's looking at the Euro's for quality tips.

It's unbelievable, but Hyundais are no longer just shit econo boxes, they are quite good cars and have been getting relatively good press in Australia. The Coup?, Santa Fe and Sonata especially have been real surprises.

This luxury car has the potential to be seriously good.
 
SL65 said:
All true but Hyundai certainly seems to be a class lower than those manufacturers so I think that'll make it even more difficult.
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That is EXACTLY what US and European manufactorers were saying repeatedly when the first Japanese cars entered their markets: crappily built, developmental step of which everybody else has been five years ago, awful to drive and absolutely no brand reputation which would kill them off in a couple of years. Not only the car indurstry, but the German consumer electronic industry as well showed this attitude. Today, there's no one left beside Loewe. :)

Hyundai has a huge financial background, so even if their first attempt should fail, they will try again very probably succeed in placing a luxury vehicle.
 
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