Hyundai has announced earlier today it will launch in December its luxury division called Genesis, intending to increase its profits.
The high-end segment is a profitable one in almost all markets for automaker’s luxury divisions and Hyundai wants a piece of that pie. Therefore, the South Korean company has just announced it will launch in December the Genesis luxury brand, in the hope of increasing its earnings and stopping their latest negative financial reports. Not so long time ago, Hyundai and their partners from Kia Motors reported a seventh straight drop in quarterly profit. Known for producing affordable cars, Hyundai will have to fight with big names in the high-end segment like BMW or Mercedes and take the battle on the largest premium auto markets in the world, China and US. “Genesis will target the same market position as Lexus, but ultimately it has to compete against Mercedes-Benz’s S-class and BMW’s 7 series”, said Kim Jin-woo, industry analyst at Korea Investment & Securities.
The Genesis brand will also adopt a new alphanumeric naming structure. Future models will be named by combining the letter ‘G’ for Genesis with a number, 90, 80 or 70, representing the segment. The Genesis line-up will start with two sedans this year, including the existing second-generation Genesis sedan, to be rebranded the ‘G80′, and the future model Equus sedan which will be renamed ‘G90′. Hyundai wants for its newly formed luxury division to include up to six models by 2020, intending to bring into the segment another luxury sedan, a sports car and two SUVs.