msl82

Here’s a question that buyers of top-shelf, name-in-lights cars usually don’t care to confront: How much are you paying for the car, and how much for the brand-name badge? There’s no doubt that companies such as BMW, Porsche and even Toyota can charge more than their main competitors. To a point, that’s only fair. Build compelling cars, create a reputation over decades, and people will happily scribble the checks.

The only problem is when a company starts to coast, slowing to admire its fine self in the rearview mirror. When that happens today, you can be sure a hungry underdog will race up and bite them in the, um, rear fascia. These David vs. Goliath smack downs are great not only for car buyers, but for the companies themselves. In recent months, some Korean and Japanese companies have been wielding the slingshots against the big boys. If they pull it off, it won’t be the first time.

The Japanese Wake-Up Call

Today’s whippersnappers might take Japanese sports cars such as the Nissan 350Z for granted. But back in 1969, the idea that Japan could produce anything but cheap econoboxes sparked fits of laughter in Detroit’s union halls. The laughing stopped when the $3,500 Datsun 240Z rolled into town — a shapely, affordable Porsche-fighter that became a smash hit. Four decades later (can it really be that long?) the Z is still going strong.

Twenty years later, it was Lexus that gave the status quo a hard shake. When Toyota kicked off its luxury brand back in 1989, some observers scoffed that Japan would dare take on the luxury-car kings in their German castles. At a bargain $35,000, the resulting Lexus LS 400 sedan not only undercut the price of the Mercedes-Benz S-Class by a shocking $25,000, it trumpeted a message that Japan could and would build successful luxury cars.

Just as importantly, Lexus helped wake Mercedes from a fairyland slumber, in which spellbound Americans would continue paying exorbitant prices for cars that weren’t appreciably better than the new competition. In other words, paying for the badge, not the car underneath.

What happened? Mercedes was forced to fight back, getting its styling and fabled innovation back on track. Fast forward to 2008, and the Mercedes’ lineup is filled with sleek, modern luxury cars it always knew how to build. Everyone won.

The Next Wave

Today companies such as South Korea’s Hyundai are movin’ in and shakin’ up the neighborhood. Its Genesis luxury sedan goes on sale this summer, starting below $30,000. Genesis buyers will be able to get some serious features, including an optional 368-horsepower V8 — Hyundai’s first-ever eight-cylinder engine. Genesis also employs the same terrific six-speed automatic transmission as the BMW 6-Series, Jaguar XK and Maserati Quattroporte, models that can cost more than triple the Hyundai’s price.

Message board: How much more are you willing to spend to get a “premium” badge?

The new Genesis sedan is intriguing on paper, and Hyundai’s features and dramatically improved quality have impressed everyone of late. But there’s also the status issue at stake. When many luxury buyers are happy to pay more for a brand name, will enough people pay less to park a Hyundai in the driveway?

To test public reaction, Hyundai rounded up more than 1,200 consumers and let them drive and pore over the Genesis sedan — with its badges initially hidden by tape. Trying to guess the identity of the car, some consumers threw out names like Infiniti, Lexus and Mercedes. That’s pretty good company for a Hyundai, said John Krafcik, Hyundai’s vice president of product development.
“We’re looking for buyers who say, ‘I don’t care about the image. I just want the best car for the money,’” Krafcik said. “And eventually, like the Corolla in the ’70s or Lexus in the ’90s, other people will start to catch on.” Krafcik added that the tanking economy and car sales can only benefit the makers of high-value models.

Suzuki, for its part, will deliver the Kizashi sports sedan to dealers in 2010. With its low-slung grille, the Kizashi borrows a page (OK, more like a chapter) from the Audi styling playbook. But with an estimated 300-horsepower V6, the Kizashi will try to convince people that Suzuki is more than hot motorcycles and lukewarm cars.

Even supercars from the likes of Ferrari and Porsche have underdogs nipping at their Prada-clad heels. The Nissan GT-R goes on sale in June. Known as “Godzilla” in Japan, the GT-R is one fire-breathing monster, with all-wheel drive and 480 horsepower from a twin-turbo V6. I drove the GT-R at Reno-Fernley Raceway in Nevada, and its performance was stupefying: 0-60 mph in a neck-snapping 3.5 seconds and a 193 mph top speed. Once again, the Nissan is stuffed with the kind of technology that makes you question why similar sports cars have to cost six figures and more — other than the fancy name.

The GT-R has already run a 7 minute, 38-second lap at the legendary Nürburgring circuit in Germany. That’s the second-fastest lap of any production car in history, trailing only the Porsche Carrera GT — an out-of-production car that cost $440,000. The GT-R, in contrast, will cost just $69,850 when it goes on sale this summer. A lot of money for a Nissan, sure. But not a lot for a Nissan that can hang with sports cars costing two, three, or even four times its price.

Hey, maybe status is overrated. Nissan, Hyundai and Suzuki could all borrow the famous line from The Treasure of the Sierra Madre: “We don’t need no badges . . . ”


Lawrence Ulrich lives in Brooklyn and writes about cars. His reviews and features appear regularly in The New York Times, Popular Science, Men's Vogue and Travel + Leisure Golf.


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bgsm1th

Suite.

Just what we need is ANOTHER Hyundai is the best company ever thread. Does this really require it's own thread when the Genesis already has one?
Will you ever get tired? I'm sure there are some Hyundai forums out there where you can all circle-jerk around the new Genesis, perhaps you should go find it...

ggesq

iTrader: (1)

Someone needs to tell Lawrence that paying 70k for a GT-R is unrealistic.

black label

I like how in the history section of this Hyundai ad, they left out that Acura delivered the first glove to the face of the European Luxury marques in 1986 and skipped right to Lexus in 89.

You can get performance in a cheap package and for the most part you always could. You cannot get top quality craftsmanship at sweatshop prices. I gaurantee that the quality of the build on the GT-R is not the same as that of the 911 turbo.

The Hyundai Tiburon was a quick good handling car for the money, but at 20,000 miles all the rattles you hear let you know why it was so inexpensive.

Inexpensive cars are inexpensive because they cost less to produce. They cost less to produce because the manufacturers found cheaper ways to build them. You can't do a cheap build and have a top quality product.

You can buy a Timex and it will tell you the time until the battery dies or you can buy a Rolex and it tell you the time until you die. In the end you get what you pay for.

SSMTL01

^ lexus had a much bigger effect with the ls than acura did with the legend IMO.. RWD vs FWD being the main difference that allowed the LS to actually compete with the europeans. Also, making a care inexpensive does not necessarily mean it was cheaper to produce..but perhaps they are able to produce it more efficiently?

Good article! I'm looking forward to the future for hyundai and can't wait to check out this and the genesis coupe in person

I am definitely one of those people who care about the "best car for the money" over the brand, hence the reason I have the S2k.

Mokos23

good read

Brandon24pdx

Yeah, that overpriced POS = complete FAIL.

Costco

1SICKLEX part 2

I drool when I see the new Genesis and Genesis coupe. But when msl82 posts something, it kinda takes the luster off of them. Hope we don't have a bunch of elitist Hyundai snobs driving around and looking down disdainfully on domestic cars.

FiveLiterCheater

I'd respect the company more-so if they didn't rip off other companies designs in every single one of their vehicles. Just feels like you're driving a cheap knock-off of something much better Atleast Lexus, Infiniti, Acura, BMW and Mercedes have always had their own look.

Trackruner228

iTrader: (1)

That was a good read.

RaviNJCLs

iTrader: (4)

^^^^

Agree.

civic4982

it does look pretty nice. they've tried to make it more "luxury" with the grille borrowed from merc, the projectors, and the sideview mirrors with the blinkers on them.

on closer examination though it would be obvious the quality difference in materials inside and out.

BENDER08

dallison

dallison

i would pay 26,000 for it

civic4982

pretty decent cars with low cost and high warranties. not a bad way to go about it.

Costco

The Genesis coupe is actually the only car that truly interests me in Hyundai's lineup (but I'm sort of a picky bastard) and I happen to think it looks like nothing else out there, and at the same time still looks great. The 3/4 shot is my favorite.... the car really shines from that angle. I'm kinda meh about the belt line drop but the 3/4 shot makes it look great and the door lines that don't meet add a lot of character. None of the other manufacturers are currently doing this, at least not with their coupes.

If I could sum it up.... the Genesis coupe is like Vida Guerra. One of the nicest asses/bodies ever, but could use some work on the face though. Would probably be a great time either way....

However ask me about Hyundai 2 years ago and I'd respond that I'd rather drive a junky ass beater than a newish Hyundai.

KCPreki11

If you can prove to me Hyundai rips off other companies designs, I would be intrigued. Who's to say Hyundai didn't have it on the drawing board before any of the others?

Costco

I think I do recall Pure Adrenaline correcting me in that the 2006 Sonata rear end design has been around longer than the 2004 Accord's... both of which look strikingly similar, but the Sonata is way nicer looking.

majin ssj eric

Hyundai is on a roll. It's a safe bet IMO that the Genesis coupe/sedan will be a smash success.....

msl82

What the hell?

How does that grill resemble in any way to Merc? Merc doesnt have that waterfall grill design in any of their models, Can you please post a pictures? Or are you just posting worthless sh*ts...??

Also, all Luxury brand has projectors, sideview mirrors with blinkers of them. Just Because now Hyundai has them, they automatically copied them?

msl82

Which car model copied?

Sonata? Santa Fe? Veracruz? Elantra? Tiburon?

Why don't you show me the pictures of the cars it copied? I am really curious...

dallison

azera, sonata

knight rider

iTrader: (1)

x2

Kia does the same thing. How do they (both) get away with that I wonder.

knight rider

iTrader: (1)

knight rider

iTrader: (1)

Costco

^ the Genesis sedan looks more like an S-Class successor than the new S550 does.

When was the last time Hyundai won any comparison tests? .......anyone?







they even copied the 'wings' on the Acura grill and the chrome strip on the hood

Costco

nice touch, with the chrome strip on the molding too. Even the shape of the hood looks the same.

knight rider

iTrader: (1)

phile

Well KC, do those answer your question?

phile

And Kia is now part of Hyundai. Even for their concepts they rip off. You can't possibly say that this was designed at the same time as the Honda when the Kia is still in the concept stage while the Honda has been out in the market for a good 2 years at least:

FiveLiterCheater

I mean shit, they even ripped off Honda's name for god sakes..

Costco

Currently Active Users Viewing This Thread: 2 (2 members and 0 guests)
I Go To Costco, msl82



You have nothing to say now, do you?

pttl

msl....did the pics above answer your...what did they copy question?

No one on these boards like the fanboy types.

I'm on record in one of these threads praising the 06 Sonata a friend of mine has, so it's not like i dislike the brand. But face it - hyundai is learning how to build better cars from copying the "masters". This is a typical learning technique. But please don't come off like Hyundai is "the answer".

GreenMonster

@ copycat pics

knight rider

iTrader: (1)

I think that is a coincidence. I'll have to research if Hyundai was a company before it started manufacturing cars or was it the other way around.

Costco

Actually, Hyundai was founded before Honda was. It actually does have a meaning too, forgot what it was though. Neither of them started making cars though, Hyundai did something and Honda made motorcycles.

GreenMonster

Hyundai means modernity... founded in 1947: http://www.hmmausa.com/company.aspx?id=260

Honda was formed in 1948... 50th anniversary is this year: http://world.honda.com/history/

Most of the shit that comes from JJaber06's keyboard is just that... shit... He's the acura version of msl82... different flavors of fanbois, but fanbois none the less...

FiveLiterCheater

I'm far from a Acura fanboy, if anything i'm more in favor of german cars.

BraveDemon

ROFL. Nice. Too bad you're way off and thats a completely ignorant statement.

Agreed.

Copies or not, if they quality holds up and it costs less then its competitors, it'll sell.

What? You thought BMW, Mercedes and Lexus immediately started off as cream of the crop luxo automakers? Go back to the 80s/early 90s: Lexus wasn't even considered a premium automaker. I'm sure it was the same for Benz and BMW even further back in time.

And its a bit much to put Acura up there with BMW, Mercedes and Lexus