Chung Mong Koo insisted the revamped Equus affluence auto accommodated all regulations in the U.S., area Hyundai’s flagship has never been sold. Now the U.S. assemblage has to amount out how to advertise a car that costs as abundant as eight times added than its Accent compacts. “The being who aloof spent $40,000 or $50,000 on a agent doesn’t appetite to sit in the dealer’s account drive abutting to a kid in his Accent,” said Eric Noble, admiral of Car Lab, an Orange, California-based consulting abutting for automakers. “A akin of amusing stratification is expected.”
Equus, a cachet attribute in Hyundai’s home market, is alien to U.S. carbuyers who appearance Hyundai as a maker of cartage that advertise for beneath than those of Japanese and U.S. rivals. Still, aloof as Toyota Motor Corp.’s Lexus and Honda Motor Co.’s Acura began acceptable sales from General Motors Corp.’s Cadillac and Daimler AG’s Mercedes-Benz in the backward 1980s, Hyundai wants a allotment of the U.S. affluence bazaar to enhance its angel and profit.
South Korea’s better automaker will adjudge this year whether to accompany Equus to the U.S., said John Krafcik, admiral of its U.S. sales company, in an April 9 account from the New York International Auto Show, area the V-8 agent auto is on display. The car went on auction in Hyundai’s home bazaar in March, priced from $48,100 to $79,000 at accepted barter rates. “We are candidly cerebration about it,” Krafcik said. The aggregation is already architecture acquaintance with exceptional barter from its Genesis auto that went on auction in the U.S. aftermost year, he said.
Knowing More About Hyundai’s Sales
Hyundai, bucking the affliction U.S. auto bazaar aback the aboriginal 1980s, had a 0.5 percent U.S. sales accretion in the aboriginal quarter, while Toyota’s plummeted 37 percent and Honda’s fell 35 percent. The aggregation is benefiting from college incentives, added advertising, agile sales and a business attack amorphous in January alms to booty aback cartage from barter who can’t accomplish payments because they’ve absent a job.
Hyundai’s convalescent angle led Group 1 Automotive Inc., client of 100 dealerships, to shop for a Hyundai abundance in Houston on April 14, the retailer’s aboriginal for the cast in a ample U.S. city, said Pete DeLongchamps, a Group 1 carnality president. “They’ve got abundant articles and one of the few brands that’s adequate absolute sales advance appropriate now,” DeLongchamps said. Hyundai rose 1.1 percent to abutting at 65,300 won in Seoul trading, bringing year-to-date assets to 65 percent.
Hyundai touts the Genesis as equaling the achievement of the Lexus GS and Bayerische Motoren Werke AG’s 5-Series, and sells the archetypal for at atomic $10,000 beneath than the two battling sedans. “It has delivered a aura aftereffect for the brand,” said Krafcik. “Equus could body on that.” Unlike Toyota and Honda, which advertise their affluence models through abstracted dealerships, Hyundai may either action Equus to all U.S. dealers that appetite it or to alone those with the best sales and accomplished affection service, Krafcik said. Starting a stand-alone affluence arrangement would be difficult during the accepted slump as dealers would accept agitation accepting financing, he said.
“That would be a abhorrent idea,” said Rick Case, who owns six Hyundai dealerships in Florida, Georgia and Ohio. “In this market, no banker could allow it.” Fort Lauderdale, Florida-based Case said Genesis is alluring affluence buyers because it isn’t a acclaimed exceptional vehicle, a account amidst the accepted recession.
“People are cogent me they don’t appetite to be apparent in a Mercedes, a BMW, a Lexus appropriate now, because of the economy,” Case said. “It doesn’t attending acceptable to be laying bodies off, and again accepting some affectionate of name affluence vehicle.”
Hyundai awash 3,945 Genesis sedans in the aboriginal division of 2009, an incremental accretion aback the archetypal didn’t go on auction in the U.S. until June 2008. Still, the cardinal contrasts with the market’s 38 percent attempt in first-quarter affluence agent sales, according sales tracker Autodata Corp. “Luxury is rarified territory,” said Michael Robinet, an auto industry analyst for CSM Worldwide in Northville, Michigan. “It will booty a while to body a adequacy on the bartering side.”
The accident in abacus Equus in Hyundai’s U.S. showrooms is repeating Volkswagen AG’s acquaintance with the Phaeton, alien in 2003. Sales ailing at 1,939 in 2004 bottomward to aloof 17 by 2007 as buyers aghast at advantageous added than $60,000 for a Volkswagen-badged sedan. Hyundai’s affection baronial additionally lags abaft Lexus, the best dependable auto cast in the U.S., according to J.D. Power & Associates.
“In the apperception of the American buyer, brands are alone adaptable to a assertive point, again they breeze aback — anticipate VW with the Phaeton,” said CarLab’s Noble. “A exceptional agent is about added than aloof the car. It’s the accomplished experience.”
Car Tips How to Sell New Luxury Car
- Car Tips How to Sell New Luxury Car