Setting up Genesis brand could cost Hyundai half-billion dollars

Ever since Hyundai started teasing us with the Hyundai Genesis sedan, it was thought that Hyundai would pull a Toyota/Lexus move and offer the Genesis nameplate as its luxury division. Hyundai even admitted at the 2008 Detroit Auto Show, during the U.S. premiere of the Genesis sedan, that it was testing the market by unveiling two Genesis Sedans, one with the Hyundai logo and one without.

With the sedan hitting the market later this summer followed by the Genesis Coupe later next year, the Genesis could be launched as a Lexus like brand. According to MotorTrend, the decision to make the move on a premium brand could be three to fours years away.

According to Dong-Jin Kim, Hyundai’s vice chairman, the automaker had spoke to a consulting firm which said that it would cost Hyundai at least half-billion dollars to set up such a brand. That would take Hyundai at least 13 years to break even.

Hyundai will launch the Genesis sedan in the U.S. market later this summer offer three powertrains including a 3.3L V6 that produces 268 horsepower and a 3.8L V6 that produces 290 horsepower. The range topper Tau 4.6L V8 produces 375 horsepower giving it the ability to do 0-60 in less than six seconds.

 

Source: MotorTrend

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