Saturday, September 03, 2016

Genesis G90 US price

The all new top of the line Genesis90 luxury sedan will start at $69 050.
So.. Not cheap.
Almost $7000 more than the Hyundai Equus it's replacing.
So Hyundai is really betting the new Genesis brand is worth that much more.

Of course, it is a lot cheaper than the German "competition".
(Which is not really competition since no BMW or Mercedes owner will ever consider this)

.Mercedes S Class:   $89 620
.BMW 7 series:        $77 900
.Audi A8:                 $82 425

But really, its main competition in the US would be the Lexus LS. Which starts at $73 495.
So, by buying a "big Hyundai" sold under a brand new name, you only save about $5000, over the big Lexus. With its impeccable reputation for reliability and resale value.

I am not sure who would ever get the Genesis.
Just like I could figure out who was getting the Equus a few years ago.

All I can say to Hyundai/Genesis is: Good luck.


DRB said...

I think if I was in the market for a large sedan like this, I would consider it. Certainly more so than the Lexus, which is nearly offensive in it's styling and carries with it the weight of immense snobbery rivaled only by Mercedes.

This has a refined look to it - not brash but not boring either. And you would certainly be standing out by going against the grain.

Doug F said...

Hyundai has been selling several thousand of the Equus per year since it came out, so someone is buying them. They would be building this car anyway for the Korean market, so they just federalize it and bring it over here. Most people thought Lexus was crazy building an expensive luxury sedan with a new brand back in the 80's but look at them now.

Anonymous said...

I would not write them off. Their designs are striking, driving dynamics improving and their valet service will be a hit in a lazy society. They just need enough PR to brainwash people to believe that Genesis owners "have made it in life"

Education Project said...

Nobody buys big cars anyways. BMW struggles to sell it's 7-series, as does Audi with its A8. Pricepoints should reflect the market reality that people prefer to drop huge sums of money on SUV's and sportscars(or performance vehicles). The only companies who sell a lot of large cars are Cadillac(with the XTS), Buick, and Mercedes. Everyone else needs to lower the price of their cars if they intend offer cars in this segment because to sell as few large cars as Jaguar, BMW, Audi, Kia, and Hyundai currently do, is to build them at a loss.

Anonymous said...

Nobody buys big cars anyways. ...

Not true and your stats need refinement. Although you are bringing up some good points, what you are sorely missing is that the profit margins are the fattest in this class. They just need to find enough fools with a big ego.

Captain Midnight said...

HA! I own a Hyundai and like most of Hyundai's designs, but good luck with that. I am no brand snob, but this car is no where worth $70000. It looks just OK and it performance is just OK. Maybe at $50K I would consider it. $70 grand and you can't get rid of the cheap square plastic radar sensor behind the grille. Even Mercedes does a better job of hiding theirs. No Thanks.

Education Project said...

My stats don't need refinement, they need acknowledgement. You can't sell a couple of hundred units per month of any car unless it's a limited run vehicle costing north of 200,000, and expect to justify the cost of building it in the first place. There is a reason BMW's next flagship will be an SUV, and why Jaguar's next XJ will climb down a rung to compete with the Panamera and A7. People don't buy large cars, unless it's priced appropriately(XTS, Lacrosse) while being a product they're familiar with(unlike the Equus, K900). Or..., unless you're Mercedes Benz, the market king, who sells almost as many cars today as it did a decade ago. Or Bentley or Rolls Royce, who charge well more than the right amount of cash to stay low-volume.

I think Land Rover acknowledged that its first generation Autobiography-trim Range Rover was only an additional 20% of equipment/options, for a 40% markup. That was before they decided to jump the MSRP from $116,000 to $200,000 on the current generation autobiography. The profit margins on high-end luxury SUV's are higher, except... SUV's are in insane demand and nobody buys large cars. And if you're going to talk about ego, there's no greater expression of your ego than an 100k SUV alongside your 120k Porsche sportscar. Large cars reek of old money, suv's and sportscar's are the icons of those who are successful today.

Hyundai was wise to start below 80k, although I think they would have done even better taking Lincoln's and Cadillac's route of starting below 70k.

Michael Harwood said...

This is kind of misleading because the G90 has no options. You pick engine, color and whether or not you want AWD. If you option the competion accordingly, there will be a 30K difference.

Anonymous said...

My stats don't need refinement, they need acknowledgement

They need refinement. Cadillac is the most overpriced for what they sell and you cannot place Hyundai and Buick in the same class as BMW and MB. These manufactures know their numbers and expected sales darn well. They are not building the 7 series to sell 200,000 units and a bigger car does not necessarily cost $50k more(i.e. E class versus S.) And your point is well taken that crossovers are becoming more popular than any size car. However, there are people, like Vince, who like wagons.

Anonymous said...

Cost of operation (maintainance) will be the deciding factor. It will be a slow seller unless they put an additional $10k on the hood (rebaTE).

Education Project said...

You're partially right Anon, but not in any way that benefits your case. BMW knows its numbers, and it's wishing its flagship wouldn't flounder as it currently does. Mercedes can sell 21,000 or more S-classes a year in the US, which in this segment is an insanely huge success(not to mention the profit margins makes this one of Benz biggest cash cow). BMW can't even come close to selling half that amount. This is down from when the 7-series used to easily sell more than 20,000 units a year in the early 2000's. They began to decline by 2000-4000 units a year, down to 14,700 in 2007. Since then, they have not been able to get higher than 12,200, and fight tooth and nail merely to average 10,700 units a year for the past 9 years. They've sold 8,000 or so units so far in 2016, with 4 months left in the year to move even more, but that is thanks to a brand new 7-series that debut last fall. Even with an all new model... it's very difficult to imagine them breaking that 12,200 ceiling, and what's worse is that things can only go down hill from here as this car ages over the next 4 years.

The BMW X5, which can be priced well into 7-series territory has no problem moving 50,000 units a year. The Mercedes GL, priced more expensive than the 7-series, easily sells 2.5 times as many units as the 7-series.

On Cadillac, fine. It's an overpriced product. But that isn't stopping the XTS from dominating with the amount of units it sells on an annual basis.

On Hyundai and Buick, the comparison is fair because an automaker doesn't care if the 70,000 your paying them is for a Chevy Suburban, an F-150, or an E-class. Buick's sales do matter, even though it is priced well below 50,000, due to its volume of sales, making it, as a large car, more profitable than the Jaguar XJ, and Lexus LS combined.

The error in your assessment comes from you assessing Hyundai, Buick, Cadillac, BMW, and Mercedes, on the basis of prestige and class, rather than seeing them purely in terms of revenue and the units sold to acheive it. Ford killed the Taurus. Chevy is going to kill the Impala. BMW is prepping a new flagship SUV, so is Mercedes with Maybach. Jaguar is abandoning the large car segment. Cadillac and Lincoln are playing it safe in this contracting segment by pricing their cars well below 60,000. With the few exceptions I mentioned above, this is a dying segment, bleeding cash.

By the way, I'm very fond of the fact that Vince likes Wagons, he's one of the few blogs that gives wagons the coverage they deserve, and I wish BMW, Jaguar, and Audi would bring more of their wagons here to the US.

Anonymous said...

I wish BMW, Jaguar, and Audi would bring more of their wagons here to the US......

We know it by now, don't we? Wagons do not sell. It is more of nostalgia for those who were unlucky as youngsters to be ferried around in wagons in the 60s. What say you Vince?

Education Project said...

That's mostly true Anon, Americans aren't too fond of wagons. Except for the Subaru Outback, which sells more than 100k units a year, but that is the exception. Volvo struggles to sell more than 12,000 wagon-based offerings a year. Ford sells very few Flex's too, around only 20k a year, virtually all of them in California. I think its more of a design issue. Wagons are finally looking better than ever, and you can see the Outback's rise into 100k sales over the past 8 years was likely due to it being a very stylish product. Most crossovers today are essentially oversized wagons. I truly think that if more manufacturers offered aggressive or premium looking wagon offerings, people would want them. I'm pretty certain the Mondeo wagon would have pretty decent sales here in the US, certainly more so than the not-as-attractive Venza and Crosstour.

Anonymous said...

I think its more of a design issue.

I disagree. It is a perception/stigma issue. The 3 series wagon is tops and it is on its way out. CUVs are sitting higher. There is something to be said about people needing to look down at others :)