The target of late-night talk show derision no more, Hyundai now has its sights set on the U.S. luxury sedan market, reports BusinessWeek:
The base model is equipped with extras normally reserved for the high end: eight air bags, electronic stability control, a traction control system, rain-sensing wipers, a six-CD changer, and a power rear sunshade that retracts when the driver puts the car into reverse. The Azera replaces the XG350, an earlier stab at the luxury market that never took off. After the XG350’s lackluster sales — it peaked at just 18,000 units, in 2003 — Hyundai studied its mistakes. Customers found that model’s ride too mushy, its engine underpowered, and its lines a bit stodgy. So to give the Azera more oomph, Hyundai developed a 3.8-liter aluminum V6 engine, called Lambda, which Hyundai says will rocket the sedan to 60 miles per hour in 6.5 seconds, on par with many luxury sedans. It beefed up the suspension and streamlined the design. And the car’s cabin is roomier than the Avalon, the Mercedes-Benz (DCX ) S-Class, and BMW’s 7 Series.
The Azera, though, is only the beginning. In 2007 the company will roll out a true luxury model, with a U.S. debut the following year, possibly under an upmarket nameplate like Toyota’s Lexus or Honda’s Acura. The car, code-named BH, will be the Korean carmaker’s first rear-wheel-drive sedan and will sport a powerful 4.6-liter engine to make it a rival of the BMW 5 series. "We still have to overcome a perception problem, but we have confidence in our new lineup of vehicles," says Brandon Yea, Hyundai’s marketing director.
Inside Line test drove the 2006 Azera (sold in Korea as the Grandeur) and liked what they saw:
Sphere: Related ContentHyundai’s only concern should be luring consumers in for a test-drive. Although the company is playing to win with the 2006 Hyundai Azera, it might take some time to drag consumers out of their Japanese-car safety zone and ask them to risk a Korean alternative.
Hopefully incentives like the world’s best warranty; a low, low price; and an increasing track record for reliability will drive the Azera toward a place in the spotlight. And allow Mr. Choe to take a well-earned vacation.
34 Comments
Hyundai had delusions of Grandeur.
Not a bad looking ride, but it won’t make much progress in the ultra-competitive luxury market in North America. A Hyundai, even rebadged, will never be accepted by this segment of the market. Hyundai is still a decade or two away from pulling off the next Lexus. Perhaps they should garner some more respect, and loyalty in their mainline autos before trying to jump into this segment.
The interior looked a little too tuperwareish and while it might be fast, it probably isn’t as smooth, quiet, or refined as it’s competitors. Another important factor is safety. You can stick airbags in every open space, but the the design and engineering of the unibody/chassis is where most of that race is won.
But what about the people who want a BMW, MB, or Lexus but only want to spend $30K? They buy a Volvo, SAAB, or Infiniti. Not a goddam “Honday”
i agree. at the end of the day its still a korean car.
Well, never say never!
Who knows what will happen in this crazy world. (Ten years later I will be looking back at this post and either pat my self on the back or punch myself in the mouth.)
Hyundai’s ambition to succeed and willingness not only to fail, but also to take lessons from the failure, is why they have a chance to pull it off. Hyundai cars have gotten better, quickly. They want to be not the “best car in Korea” but rather to have a chance to be the best car in the world — who knows if that’s realistic, but gotta love ‘em for trying.
Getting their lips beat in international competition is Hyundai’s “tuition”. Compare that to the protected markets here — oh, I don’t know, the legal market?
LOL Kushibo!
Azera/Grandeur is a good looking, quality car; however, one should always wait at least one model year before criticizing or praising the reliability of any car, regardless of origin. In fact, recent reports (I’m too lazy to dig them up) have placed several expensive European automakers in the same shite barrel with Korean brands, while praising the mechanical reliability of several Japanese makes.
Without building reptations by investing and becoming successful in Formula, Le Man, FIA, Super GT or any notable cmpetitons, Hyundai will never be considered seriously.
Short term strategies like competitive pricing and dead-copy designs just don’t sell cars.
Korean cars have come a long, long way from just a few years ago. Aren’t the Santa Fe and Sonata rated very high in the states?
The interior is roomier than that of the Merc S Class?
What was the BW reporter smoking? It’s the reverse, by a long shot.
Korean cars have done much better, for the reasons Brendon mentions. Where was it, maybe somewhere on Marmot’s, where there was a story about high marks for a Hyundai model and some people were falling over themselves in disbelief, trying to rip apart the story.
And now, one person who has never driven the model in question, is already assuming, “it probably isn’t as smooth, quiet, or refined as it’s competitors.” Based on what? Your suppositions?
Ah, the echo chamber that is the Korea-related blogsophere.
This reminds me of when I was a very young lad around 1992 or 1993 doing a part-time job helping out with correspondence and “translation” for a government organization aimed at “informatization,” instead of flipping burgers.
I was talking with some old-timer Korea residents from overseas I knew — mostly English teachers — about the work and they laughed (literally, they laughed) at the agency’s stated prospect of making Korea “one of the most information-oriented countries in the world” by the end of the decade. Well, one of them didn’t laugh. He said, “Inter~what?”
To these people, Koreans could do no right. Any apparent success must have been engineered by Korean image-makers or a paper tiger.
One or two might be on this blog right now, typing away on the Inter~what? about how Hyundai has no chance of making it as a luxury car.
Seems to me, from what I’ve heard, they said the same thing about Honda and Toyota back when they were first thinking about this.
Color me cautiously optimistic.
Don’t under-estimate Hyundai and its business performance, nor its potential in the luxury car sector. This year in Detroit, the 2005 Korea Auto Day event had Amerian suppliers lining up to do business with Hyundai both in Korea and the U.S.
Two Hyundai reps. made an appearance. One flew in from Korea, one was already stationed in Detroit. Let me tell you, they were the most popular guys there, esp. the man who was flown in from Seoul. I saw people actually begging to do business with them.
Likewise, everywhere we went, whether it was Chicago, Detroit and even here in Korea, I was amazed at how many American businesses want to partner up with Hyundai and its KIA and Hyundai Mobis branches.
You may laugh now at the thought of Hyundai as a luxury car but don’t write it off so soon. It’s a bigger name in the US market than you think.
The original Daewoo Prince has potential.
“But what about the people who want a BMW, MB, or Lexus but only want to spend $30K? They buy a Volvo, SAAB, or Infiniti. Not a goddam “Honday”"
True, but also look at it this way. For all those people who can’t afford a BMW, MB, or Lexus, or Volvo, or Infiniti, or a SAAB, they’ll buy the luxury Hyundai for a Honda Accord price. And you’re partly wrong, Volvo and SAAB’s are notoriously unreliable. Hyundai will eat the lunch of Volvo, Saab, and VW.
“This year in Detroit, the 2005 Korea Auto Day event had Amerian suppliers lining up to do business with Hyundai both in Korea and the U.S.”
Very true. For instance, Hyundai took charge of the design and co-produced various car engines for Chrysler and Mitsubishi. Not too long ago, all Hyundai’s were using borrowed Mitusbishi engines. The Hyundai design engine in the V-6 Hyundai Sonata is considered to be one of the sweetest performing engines that is out there. I don’t know why people still insist on laughing at Hyundai. It must be the name.
Hardandtiny, I’m not discounting Hyundai’s reliability, I wouldn’t be surprised if this car is the second most reliable behind its Lexus counterpart. People who buy these cars aren’t obsessed with reliability. In fact the german models have a lot of minor problems. However the dealer experience (repairs) in the case of these marquis brands is exceptional. Do you think these Hyundai dealers know how to handle this type of buyer? They’ll be sharing the waiting room with 17 year olds getting their brakes done on their Accent Oil Burner.
it’s pretty silly to think that a korean car company could never be successful in the luxury car market. it might not make big waves now, but given time and more name recognition, it certainly can in the near future.
if you would have asked the general public about the quality of a samsung cell phone in the late 90’s or early 2000’s, you wouldn’t have heard good reports. but ask the same question today and the response is quite glowing.
Sperwer, first of all, the idea that Korea can do no right has nothing to do with my comments. Did you see me bragging about American cars? Hmmm…maybe there is something else behind my comments. How about fact.
Lexus has the tightest design tolerances of any automaker. Their plants win manufacturing awards for their precision almost every year. Those little +- 0.0099 mm figures make a difference. Not only in reliability but in noise, smoothness, and appearance. Anyone who has driven a Lexus for more that a few minutes can’t deny there is something unusually “buttery” about their cars. Ditto, but to a lesser exent for MB, BMW, Audi.
How many awards for manufacturing excellence/precision has Hyundai won? I’d be interested to know.
You might want to take a brief look at the history of Toyota Motor Corp. Their manufacturing methods have revolutionized how everything (not just cars) are built. They wrote the book literally and figuratively almost 40 years ago. Upon that they built a luxury line of autos, and in 10 short years they have dominated their competition.
They idea that Hyundai can do this is laughable. Sort of like Dan Quayle comparing himself to JFK.
“Upon that they built a luxury line of autos, and in 10 short years they have dominated their competition.”
And what makes you think Hyundai can’t do the same in 10 years time? If you didn’t know already, Hyundai’s goal is to achieve Toyota like quality.
“They wrote the book literally and figuratively almost 40 years ago.”
40 years ago Toyota was unknown in the west. 30 years ago, everyone laughed at those weak, funny “rice cars” from Japan. The Honda Civic was a junk car, voted one of the worst cars in history. Now they’re building luxury Acuras.
How many awards for manufacturing excellence/precision has Hyundai won? I’d be interested to know.
The answer to your question is “none.” Don’t think they don’t know it at Hyundai either. They know. Judging from the rate of improvement in their cars (I’ve lived here since 1990) one would guess that it’s a number burning their ears over at Hyundai.
The question we should be asking is “When will Hyundai win awards for manufacturing excellence/precision?” The answer is “Not today, but maybe soon.” Like I said in another thread, I drive a Hyundai group car and it’s a good car. They want to make great cars. Maybe one day they will.
Nothing lasts forever. Mercedes-Benz is having quality troubles. Who would ever have guessed that?
And probably to pull off an entry to the luxury market, Hyundai will have to launch a new brand in the U.S. and Europe. The Hyundai brand already has been positioned as the “cheaper import car” and still has the joke-like connotation of crapmobile. Lexus, Infiniti and Acura were launched by Toyota, Nissan, and Honda, respectively, for exactly the same reason — their existing brands were not associated with the luxury vehicles they were ready to launch. This is also why Mercedes-Benz sells the Smart car under a different marque.
Unfortunately, branding is a treacherous thing for Koreans. While i have every confidence that the manufacturing problem can be licked, the marketing/branding issue will stymie Hyundai so long as they think they can do it themselves here in Korea. The Galapagos Island effect will end up having the new luxury car branded as “Hi! Seoul”
The rear of the car looks nice. The front, not so nice. The design seems more aimed for the Camry class.
I’m trying to buy the lowest, basest model of Hyundai in the states. The Accent. Apparently, even used ones (within 5 years) aren’t dirt cheap. I’m guessing they are more reliable. Blue book values have risen for sure.
My first Toyota, purchased in the early ’70s, was a lemon. In 1984 I ended up with a few year old Celica hatchback which was one of the finest cars I ever owned. Went from that to a Buick Skylark (Brazilian assembled), and it was only an adequate car. Replaced that with a 1992 Mitsubishi, the greatest car I ever owned. Bought a 2001 Ford Ranger for the farm, that was terribly disappointed. Still driving the Mitsubishi at 150,000 plus, and I wouldn’t trade it for my first car (a 1965 GTO with triple carb). Hyundai could convince me, it ever Consumer Reports suggests that its reliability matches that of Toyota and Mitsubishi. Buying habits change, even among semi-fossils!
“Nothing lasts forever. Mercedes-Benz is having quality troubles. Who would ever have guessed that?”
Guess when their quality troubles started occuring? Circa 1996. Right about the time Lexus started booming. It’s a classic Consumer-Victim model. It’s not that Germans, Koreans, and Americans CAN’T build cars as well as Lexus. They certainly have the technology to do so. It’s just that they can’t do it at a competitive price.
The lean manufacturing techniques of Toyota is the comparative advantage. The US auto makers have given up. DaimlerChrysler, and to a lesser extent BMW, have tried to keep pace with Lexus by lock-stepping features and technology and resting on their marquis heritage. But this is all at the expense of their once legendary dependability and fit/finish. They now use cheaper suppliers and assembly processis. They wouldn’t be doing this unless they were getting squeezed by Lexus who already sells comparable models for 5-15%less.
I had written this…
I was talking with some old-timer Korea residents from overseas…about the work and they laughed (literally, they laughed) at the agency’s stated prospect of making Korea “one of the most information-oriented countries in the world” by the end of the decade. … One or two might be on this blog right now, typing away on the Inter~what? about how Hyundai has no chance of making it as a luxury car.
And then someone wrote this:
They idea that Hyundai can do this is laughable. Sort of like Dan Quayle comparing himself to JFK.
Thanks for proving that I’m not making apocryphal **** up. You will be the subject of a post of mine some ten or fifteen years from now.
Kushibo, you assume that if one is skeptical of Hyundai’s prospects in the luxury car market it belies some dark underbelly of hatred towards Korea or it’s people. With a litany of reasoned arguments you can only muster a sanctimonious off-subject jab.
Tell us then. What comparative advantage will Hyundai/S. Korea utilize to achieve this looming induction into manufacturing superiority?
Truth told the auto business is shit. It’s dirty and dumb and I’m glad this low-skilled suck on the US economy may be drawing to a close so we can allocate our resources to more productive and profitable endeavors.
If Korea is lucky (and I think they are) they will leap frog this phase and focus on becoming an intellectual and service oriented power rather than getting wrapped up in bending metal. Korea’s potential is above that of world class “car maker” in my opinion. But if that’s the scope of your predictions for a highly educated and capitalized country you must really doubt its people more than I doubt Hyundai. Happy driving twit.
First of all, Hyundai may or may not be able to build luxury quality cars in ten years (or 20 or whatever).
But there are huge image barriers aside from technical ones.
I am a big booster of Lexus and Infiniti cars. I own a couple of them at the moment. Lexus has that whole “serenity” and “sense of separation from the road” thing beaten to a pulp. Infiniti does the whole European motorist joy thing well — ONLY with much higher reliability.
Yet, even these two stellar brands (Infiniti’s M35/45, for example, is now heralded as meeting or exceeding European “peformance” by some auto magazines) encounter a lot of prejudice from European-is-best crowd.
You shove reliability surveys, performance ratings and other data on their faces. They’ll respond with “European cars have soul. Japanese cars don’t” (see this entry in my blog).
Since this is purely based on emotions, it’s much hard to disarm than competition based on factual information.
Unfortunately, a good part of the luxury segment of the car market is made up of people like this.
Now if Lexus and Infiniti, perhaps some of the best built cars in the world, are having this kind of trouble still from luxury motor enthusiasts, what kind of reception do you think Hyundai will get?
And this is assuming, in the first place, that Hyundai WILL be able to close the huge chasm of gulf that exists in quality between its cars and the best luxury cars in the world.
Kushibo>”I was talking with some old-timer Korea residents from overseas I knew — mostly English teachers — about the work and they laughed (literally, they laughed) at the agency’s stated prospect of making Korea “one of the most information-oriented countries in the world” by the end of the decade. To these people, Koreans could do no right. Any apparent success must have been engineered by Korean image-makers or a paper tiger”
First of all, although it sounds impressive, I’m not quite sure what “information-oriented country” is supposed to mean. Is this another meaningless Kanglish term like “ubiquitism” instead of “interconnectivity” or “reform” in place of “home improvement”? Given such profound problems in the sphere of communication and logic, I’m wondering whether we’re talking about babble or information.
At any rate, can Korea become “one of the most information-oriented countries in the world” anytime near the end of the decade, which is only 4 years away, given the profound state of its communication issues today? I don’t know, but then, I don’t even know what information-oriented means. Does this mean that other nations simply have little use for information? Does it mean that Korea creates or transmits more information? Are we talking about quantity or quality of information?
Pehaps this refers to another of those meaningless statistics like most broadband subscribers, etc. As you know Koreans are fond of phrases like “best in the world” and “one of the best”, and little ever comes of such dramatic pronouncements, so it’s only natural and proper to exhibit some skepticism.
Why should asking hard questions be characterized as “Korea can do no right.” Korea certainly can do things right. The problem is that it is also in the habit of making major blunders that can negate what was done right.
“Seems to me, from what I’ve heard, they said the same thing about Honda and Toyota back when they were first thinking about this.”
I don’t recall anyone having said that about Honda and Toyota. I also don’t believe that they are actually considered luxury cars. Honda is famous for its no-frills durability, for instance, but hardly luxury.
Mizar5, if you look at my post, I was referring to something that happened in 1992 or 1993, so the end of the decade was five years ago. And the “information-oriented country” (”informatization” was another word), explained in detail to the the skeptics, was the phrase they were using then for what is now being referred to as being wired.
In other words, in 1992 or 1993, the government agency was helping lay out the on-line infrastructure and patterns of use we see today. It all seemed very implausible to the people I was discussing this with.
Korea being a top-ranked wired society; Hyundai or other automakers making quality, reliable cars… I heard these and other similar developments being scoffed at and I watched them come to fruition. I have high hopes for Hyundai being able to make luxury vehicles.
I still scoff at the notion of Korea being a highly wired society. To my mind it’s an empty achievement. What we have is a nation of “thumb-tribers” and gamers, a very low rate of internet use among senior citizens compared to advanced nations.
In other words, quantity is there but not quality of information. A tool is only as good as its use.
As for quality cars, yes, I’ve heard that quality is improving but this did seem extraordinarily unlikely considering the inattention to detail that we are famous for. In other words, this is a surprising delveopment bt a welcome one and, regardless of exceptional examples like this, the perception problem remains well-founded.
Your point is taken. Korea has possibilities that should not just be written off. And mine is as well - once achieved they are often short-lived and difficult to sustain.
Mizar,
Gamers? In Japan, there are people who haven’t stepped outside of their house for years, b/c they’re addicted to gaming and other reasons. We all know what American teenagers are like…not as bad as those Japanese…but…you know. Cuz you were one of them and I’ve lived you guys.
Senior citizens. Compared to the U.S. who practically leaves all their parents in foster homes, Korea has a much much lower percentage of people who leave their parents in foster homes. The sons and daughters take care of their parents in a more real way…meaning everyday life things as well. The senior citizens here don’t need the internet. Booking flights? Getting information? Anything they need… That’s just how the culture and society here is. Of course times are changing and yeah, there’s cons as well as pros. But in respect to your “scoff at the notion of Korea being a highly wired society” this is the pro.
Whatever the purpose of using the Internet, getting information, reading blogs of someone halfway around the world, gaming w/ someone halfway around the world, cyworld, etc.
The point is: You know more about the world, your country, information is spread, distributed fast and freely. People are more aware of the world that we live in… even at a very subconscious level(i.e. just playing a game with a French kid and a Japanese kid).
That was for Mizar.
As for the original subject.
Hyundai is feeding thousands (they have families to feed…so multiply that number by about 4) of middle class, lower middle class, blue collar red-blooded American workers in the United States.
The more Hyundai succeeds more Americans have a chance to live a better, higher quality life.
Hyundai…wants co-prosperity, (as is the Korean mentality when doing business…I won’t get into the oil business). Let’s all(Americans and Koreans and others who wants a job and who wants Hyundai to succeed) work hard, make some goddamn money, move up the f*ckin’ social ladder, pat ourselves on our goddamn backs, retire and f$ckin’ thank Hyundai for risking their asses on rednecks like us and giving us a chance to live like men again.
Everyone knows how hard Koreans work.
We’ve seen them take chances on rednecks.
So, just why is Hyundai going to this extent?
They want a m*th#$f*$kin’ honest chance. They worked hard…why? To deliver when that chance comes.
So if you’re an American…and you want your fellow blue-collared American to have a chance to get his racist, redneck ass out of the current sh*thole he’s in and live a better quality life….then you had better shut up and give Hyundai an honest chance.
Awards? JD Powers to name one?
http://www.jdpa.com/news/relea.....ID=2004037
Just google it before making a imperative statement that “uuhh.. I don’t know…but since I’m a biased f*$k I’m just gonna state as a fact that they got no awards…uhh..cuz they can’t get no awards…uh…cuz they’re Hyundai…dude”
Man…I can’t believe I had to copy and paste a link in here just to prove a point.
JD Powers? Je’ee’zus. Isn’t that a consumer-oriented ogranization that is like Consumer Reports but sells their endorsements for advertising revenue?
I was referring to manufacturing awards, given by engineering and industrial technology associations. Google “Tahara Kyushu Lexus” you’ll see what I mean. Or maybe you won’t. You seem pretty stupid.
Don’t pay him any mind, Ace. He’s a kid who stumbled into this blog last week and started adding his two cents to any thread that is critical of anything Korean.
So if you’re an American…and you want your fellow blue-collared American to have a chance to get his racist, redneck ass out of the current sh*thole he’s in and live a better quality life….then you had better shut up and give Hyundai an honest chance.
That certainly is an interesting view of America… or Americans.
I don’t know. I think Honda is doing a pretty marvelous job of handing out high-paid employment to folks in the South while making quality cars.
Then there are those of us, who just don’t care about other people’s employment, blue-collared or otherwise, and want to enjoy our luxury vehicles for what they are.
I think I’ll stick to Lexus and Infiniti cars for now. I suppose if I wanted to drive Hyundai’s intead, I’d have stayed in Korea.
what a shame korean’s always with the inferiority complex with japan, now that i was very much interested with korea i find that everything is compered with japan, what a disapoinment.