|
Hyundai Motor has taken the first step in a tough challenge to dominate the world's premium car market with the launch of its Genesis luxury sedan. Korea's largest automaker held a ceremony to celebrate the launch of the new car at the Hyatt Hotel in Seoul on Tuesday.
Having spent some W500 billion (US$1=W941) over the last four years on developing the Genesis, Hyundai considers the sedan a symbol of its 40-year history of technological prowess and passion. Chung Mong-koo, the company's chairman, said at the launch ceremony that the Genesis embodies Hyundai's will to pin its future on the global premium car market which is currently led by European automakers. He expressed his determination to make Hyundai the leader in the market.
The release of the Genesis is likely to intensify competition between Hyundai and high-end foreign brands in the local luxury market. It comes equipped with a long list of state-of-the-art features. The rear-wheel-drive sedan comes with either a 3.3-liter or 3.8-liter V6 engine, both of which boast power, fuel efficiency, quiet and durability. It also features a six-speed automatic transmission, smart cruise control that uses radar to measure the distance of the car ahead to keep the Genesis at a proper distance, and adaptive headlamps that position the focus of the light according to driving speed and turn direction.
A Hyundai official said that the Genesis rivals the Mercedes-Benz E-Class and BMW 5 series in quality and customer service. The price is set at W40.5 million for the BH 330 Grand, W45.2 million for the BH 330 Luxury and W52.8 million for the BH 380 Royal. Hyundai is hoping to achieve sales of 35,000 units in Korea in the car's first year.
If the Genesis proves a success in the North American market, it will enhance Hyundai's brand value. The company official said that Hyundai aims to export 20,000 units to North America this year and 45,000 next year, selling a total of 80,000 units at home and abroad.
But Hyundai's plan to compete in the American luxury market is "a huge risk" the Wall Street Journal said on Tuesday. The newspaper said the Korean company's timing is unfortunate as auto sales in the U.S. are down, mainly among mid- and full-sized vehicles, due to soaring oil prices and the subprime mortgage crisis.
Right now Hyundai is selling about 1,500 Grandeur sedans, which cost about US$25,000, per month in the U.S., and around 1,200 Vera Cruz crossover SUVs, which cost about $30,000. But a company executive said that it is very important for Hyundai to enter the luxury market even if it costs dearly because that is how the company can raise its brand value.
(englishnews@chosun.com )
|
