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Hyundai to challenge luxury brands BMW, Benz with Genesis

November 6, 2015
Hyundai Motor Co. Chief Designer Officer Peter Schreyer speaks during a news conference in Seoul, South Korea, Wednesday, Nov. 4, 2015. Hyundai Motor said Wednesday it has launched a premium car brand named after its Genesis sedan to boost earnings and its share of the fast-growing global market for luxury vehicles. (AP Photo/Ahn Young-joon)

Hyundai Motor Co. Chief Designer Officer Peter Schreyer speaks during a news conference in Seoul, South Korea, Wednesday, Nov. 4, 2015. Hyundai Motor said Wednesday it has launched a premium car brand named after its Genesis sedan to boost earnings and its share of the fast-growing global market for luxury vehicles. (AP Photo/Ahn Young-joon)

By Brian Han

Hyundai Motor Co. has come a long way since the 1980s when it started selling incredibly cheap, affordable cars overseas like the Excel.

Now the automobile maker plans to take it a step further by establishing an entirely separate brand called Genesis, which is meant to compete with luxury brands like Mercedes-Benz, BMW and Audi.

Hyundai actually started planning to make this exact move back in 2004 when it first unveiled the Genesis model to the world, but because the luxury car market started to sag in 2008 due to the global recession, it was forced to pull the reins.

Fast forward to 2015.

That same market is thriving and in addition to the Genesis sedan that consumers are already familiar with, the company plans to release a large sedan next month that will act as the flagship model for the brand.

Two more models, a sports coupe and a sports utility vehicle, will hit the market by 2020 according to an announcement by Vice Chairman and the founder’s grandson Chung Eui-sun.

Until now, Hyundai was one of the only major players in the global car market that didn’t have a luxury brand.

Granted the timing also coincides with Hyundai’s lowest quarterly profit in five years so even though the luxury car market only accounts for 10 percent of worldwide sales, it may be the shot in the arm needed to revive dipping sales.

In order to ensure a product that matched the ambition and image of the Genesis brand, Hyundai hired Luc Donckerwolke who is known for his work with Bentley as a chief designer. He also worked with Audi and Lamborghini as part of their design team.