Hyundai steps up to luxury - Los Angeles Times

The carmaker has grabbed a bigger share of the U.S. market as its quality and reputation have improved, but the sedan's $60,000 price may steer consumers to rival models from Lexus, Mercedes and others.

 

September 12, 2010|By Jerry Hirsch, Los Angeles Times

At first glance it's hard to discern who made this new luxury car. The long sloping hood evokes a Mercedes-Benz S class. The bisected grill bears a touch of the BMW 7 series. The galloping horse hood badge hints of the "winged B" on a Bentley.

With a dark burled wood dash and steering wheel, soft leather upholstery and brushed metal accents, the spacious interior oozes opulence. The driver's seat has a built-in massage system. The back seat offers a refrigerated compartment to keep drinks cool. A powerful 4.6-liter, V-8 engine with 385 horsepower sits under the hood. No less than nine airbags keep passengers safe.

Only the "Flying H" corporate logo on the trunk lid gives any clue to the car's origin. Is America ready for a $60,000 luxury car from South Korea?

That the question would even be asked represents a remarkable turnaround for an automaker that once produced some of the worst cars sold in America. Underpowered and unreliable, the early Hyundais first introduced in the U.S. in the late-1980s were inexpensive and sold briskly until people learned just how bad the autos were. Similar dependability issues chased import brands such as Renault and Fiat from the U.S. market, but not South Korea's Hyundai Motor Co.

Tenacity combined with the introduction of new vehicle designs have spurred sales, improved reliability and sparked consumer interest. Hyundais are now thought of as well-built, utilitarian autos with a touch of stylish pizazz. This has set the stage for the launch of the Equus, a luxury car designed to compete with the likes of the top Mercedes and Lexus sedans. It goes on sale in November.

The success of Lexus, Acura and Infiniti — divisions of Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co, respectively — "shows that Americans aren't as brand loyal as traditional luxury automakers assumed," said Eric Noble, president of CarLab, an automotive product and design consulting firm in Orange.

"The reality is that the same people — namely baby boomers — who made Lexus a success are the same people who will make any competent luxury carmaker a success in the United States," Noble said.

Despite its improved image, Hyundai still faces hurdles moving into the refined luxury market.

Read More: http://articles.latimes.com/2010/sep/12/business/la-fi-autos-hyundai-20100912

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