Hyundai Genesis Coupe

My March 1st post on the Hyundai Genesis was did not appear to be popular based on the number of comments posted. The Koreans are here in the U.S., with some very impressive cars! In fact, the 2009 Hyundai Genesis won the 2009 Car of the Year Award at the North American Auto Show in Detroit.

OK, everyone thinks what is the big deal about Hyundai, a second tier automotive producer. My prediction is that Hyundai will become a major player on the world automotive stage. The big deal is that they are delivering highly competitive products at extremely competitive prices which are thousands less than the competition. They also are offering great build quality and a super 10 year warranty.

So, even in tough economic times like this their sales are relatively constant to last year, meanwhile most manufacturers are experiencing severe sales declines. Currently Hyundai is translating to exceptional value!

The Genesis Coupe arrived in U.S. dealerships in late February as a 2010 model. Hyundai USA acting President and CEO John Krafcik has described the Genesis Coupe as being designed "...to deliver a driving experience that challenges cars like Infiniti G37".

The Genesis Coupe will have two available engines. The base engine will be a 2.0L turbocharged 4-cylinder producing 210 hp. with an optional 3.8L Lambda V6 engine producing 306 hp. A 6-speed manual transmission will be standard equipment, with an optional 5- or ZF 6-speed automatic (depending on engine choice).

The gas mileage is for the 2.0 liter turbo is 30 mpg city and 36 mpg highway U.S. and the 3.8 liter rating of 25 mpg city and 30 mpg U.S. Pricing for the 2.0 liter turbo starts at $22,750 and the 3.8 liter at $25,000. Pricing for an Infinity G37 starts at $35,900.

Here is what some of the automotive journalists have to say! According to Edmunds.com G37 Comparison Test, "Hyundai Genesis Coupe V6 beats out Infinity G37 by overall score". Popular Mechanics had this to say about the G37 Comparison review, "..the extra $10,000 on the price tag of the Infiniti doesn’t seem quite worth it."

Car and Driver review, "..Then I drove the V-6 model, fast. Whoa, this thing is unexpectedly hard core. There’s vigorous throttle response, a husky V-6 exhaust note, and giddy acceleration. In the canyons, the steering turns in with a vengeance, the car tracks through corners like a race car, and the brakes are from Brembo."

GM and Ford Announce New Buyer Assurance Plans

I do not agree with many of the actions taken by President Obama, I applaud President Obama's actions with regard to the auto companies. He has acted boldly, swiftly and decisively. I did not vote for him but I have been impressed with his leadership ability. These are difficult times and it requires substantial actions to get us thru these difficult economic times. The banks and AIG should have been handled in a similar manner to the auto companies.

The same needs to said of the leaders of our troubled companies. Today, Fritz Henderson the new CEO for GM announced its "Total Confidence" program. The Total Confidence program will make up to nine payments for up to $500 if the buyer is laid off during the first year of ownership. Customers do have to qualify for state unemployment to be eligible for the program.The program appears to be testing the waters, since it is effective from April 1 thru April 30th.

Ford Motor Co. also announced a similar program Tuesday, which will take over customer's payment of up to $700 a month for a year in the event of job loss. The Ford program goes thru June 1st.

These programs are similar to the Hyundai's program which has limited severe declines in their sales via a creative incentive for its customers. Hyundai will cover a new vehicle's depreciation if customers return a car within 12 months because they are unable to make payments due to a job loss, disability etc. GM's U.S. sales declined 51 percent and Ford's U.S. sales were down 44 percent in the first two months of 2009, compared to a market that declined 39 percent overall. Hyundai's sales rose 5 percent over the period.

These type of programs directly impact buyers concerns about the future. Buyers lack confidence that they will have their jobs in a few months, so why would someone buy a car under that scenario. People are also concerned about buying a car from a bankrupt company.

My take is that the U.S. based companies need to be aggressive to reassure their buyers that they are going to survive and prosper. GM and Ford should have instituted these programs originally, not in reaction to Hyundai's program.

Hyundai Genesis

Hyundai introduced their first car the Excel in 1984. The Excel was very inexpensive at $4995, and accordingly sold 168,000 cars in the U.S. in the first year. But, owners started uncovering substantial quality control problems and sales dropped substantially.

Hyundai has come a long way since the early Excel! Hyundai has increased their quality substantially and they have one of the best warranties in the auto business.

In 2008, Hyundai introduced the Genesis sedan. I am of the opinion that the Hyundai Genesis is a paradigm shift for Hyundai. It is probably equivalent to the Lexus LS 400 introduction in 1989. Lexus subsequently increased sales exponentially and become a household name in the process.

Now Hyundai did not introduce as separate new luxury line like Lexus. But they did introduce a substantial vehicle that is now the halo car for Hyundai. Now they have to overcome the stigma of being a lower tier auto producer.

With Genesis V6 base pricing starts at $33,000 plus options, add an additional $5,000 for the V8. The V8 was voted a 10 Best motor by Wards. Both cars are an exceptional buys. The Genesis looks and drives like a more expensive car than the direct competition based on price. The Genesis was named North American Car of the Year for 2009 at the North American Auto Auto Show in Detroit.

I am of the opinion that Hyundai is going to compete with much higher end cars. A Car and Driver Road Test compared the Genesis 4.6 V8 to some high end competition like the Audi A6 4.2, Infinity M45, Lexus GS460, and Mercedes E550.