
Hyundai Splitting Up the Family?
A history of luxury offshoots
Rumor has it Hyundai is taking a long, hard look at casting both the Genesis sedan and the upcoming Equus in a different light than the rest of the company’s economical offerings. It doesn’t take a hard-core business strategist to realize the two quasi-luxury sedans are about as far from the lowly Accent as one can get in the automotive spectrum -- or, at least within the range of the Hyundai badge. To help underscore the difference, the automaker is contemplating a “showroom within a showroom” for just the two big 4-doors. Sound crazy? It may not be as strange as you think. Several manufacturers have employed similar strategies with big-time success.The most notable (and successful) luxury offshoot started with Honda in the mid '80s. In 1986, the Japanese company started an experiment that would become the norm for several other manufacturers when it founded Acura, which served as the company’s American luxury division. Honda wanted to illustrate just how different its luxury cars were from the economical commuters sold under the parent company’s nameplate, and the plan worked. Acura became the poster child for affordable luxury in the U.S., and Nissan and Toyota copied the business model with Infiniti and Lexus, respectively.
Most recently, Toyota took a step in the opposite direction with the Scion brand. Instead of moving upmarket, the company decided to target a younger crowd and emphasize factory customization at the same time. Scion vehicles all follow a similar pattern of excellent standard equipment and a low price, and that combination has helped launch the brand to wide success.
The real difference between Hyundai’s plans and the standard industry tactic of divide and conquer is that the Korean carmaker won’t be unveiling a new brand under which to sell the Genesis sedan and Equus. Instead, buyers will simply see those models segregated from the rest of the pack in the showroom. Will that be enough to separate the two sedans in the mind of the public? If the rumors are true, we'll soon find out.
(Photo courtesy of Hyundai.)
EXPLORE NEW CARS
MORE ON MSN AUTOS
Strategic Vision releases its annual list of the highest-quality vehicles.
ABOUT EXHAUST NOTES
Cars are cool, and here at MSN Autos we love everything about them, but we also know they're more than simply speed and style: a car is an essential tool, a much-needed accessory to help you get through your day-to-day life. What you drive is also one of the most important investments you can make, so we'll help you navigate your way through the car buying and ownership experiences. We strive to be your daily destination for news, notes, tips and tricks from across the automotive world. So whether it's through original content from our world-class journalists or the latest buzz from the far corners of the Web, Exhaust Notes helps you make sense of your automotive world.
Have a story idea? Tip us off at exhaustnotes@live.com.
