Luxury Startup

Hyundai’s New Genesis Brand Tries to Reproduce What Lexus Did for Toyota. 
 

- Alisa Priddle

It was nearly 30 years ago that Toyota launched its Lexus luxury brand, throwing down a gauntlet to Germanic supremacy and demolishing the reputation of Japanese cars as tinny econoboxes. Now the Nappa leather shoe is on the other foot, as Hyundai launches its own luxury brand—and Lexus is the target.

Hyundai has made tremendous strides in the past decade and feels it has improved its reputation from the days when rival executives derided Korean cars as “cheap and cheerful.” It also tested the waters with premium cars and thinks it can compete with a stand-alone luxury brand. Although Hyundai has sold plausibly premium cars under its own badge, Genesis is the birth of an official luxury brand. The G90 flagship is designed to appeal to those who want a big but affordable high-end sedan—as well as the chance to be part of something new.

The G90 also shows that parent Hyundai knows it must pay its dues in the luxury space, which is dominated by Mercedes-Benz, BMW, and Lexus. So its initial targets are second-tier luxury brands such as Cadillac, Infiniti, and Lincoln. Genesis general manager Erwin Raphael says the brand will have to convince customers of the G90’s worth because “fluff won’t sell.”

In other words, the Genesis G90 won’t be greedy in price or expectation. That should bode well for buyers who want Mercedes- Benz features without the eye-popping cost.