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Hyundai aims to Challenge German Luxury Car Makers

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It was on a rare occasion that Hyundai Motor’s design center opened its doors to the media.

To enter the guarded facility, visitors are required to pass through two checkpoints. At the first one, all identification cards and laptops are submitted, while security stickers seal shut the cameras, including those in mobile phones.

Security seems air-tight at this Gyeonggi Province-based facility, more so at this time as the next generation Genesis is poised to hit the markets.

A fleeting glimpse of a wing-shaped badge ― Genesis’ trademark logo ― suggested that the new Genesis may be one of sedans spotted racing down the roads for test-drives on the center grounds, shrouded under black covers.

Oh Suk-geun, head of the carmaker’s design center and senior executive vice president at Hyundai Motor Group, would not comment on what rested beneath the sheets.

“This is going to be a game changer in the premium segment” was all Oh would reveal, adding that finishing touches were in the making to launch the vehicle late next year.

To bring Genesis up to par with its European competition, Oh ― who oversees six design centers located in Korea, the United States and Europe ― hinted that Hyundai may diversifying lineups for the Genesis models, similar to the series classification adopted by BMW.

Hyundai, still regarded by many as a carmaker of only cheap and compact cars, has a reason for being so “hell-bent” on cultivating a premium image, Oh said.

“Hyundai needs a dramatic shift in key capabilities for future growth and gaining a premium image is the most important solution,” he said.

He admitted that many of Hyundai’s competitors have made failed attempts to break into the upscale segment that is largely dominated by German carmakers BMW, Mercedes-Benz and Audi.

Japan’s Toyota Motor still sells its Lexus vehicles in limited markets, while European carmakers such as Renault and Peugeot have yet to be successful in selling high-end cars.

“It may sound hopeless. But we know that the audacity of Koreans sometimes creates a new opportunity,” he said, citing the earlier skepticism about the Genesis that now sells some 2,000 units every month in the North American market.

Oh entered Hyundai in 1984, right after graduating from Seoul National University where he studied industrial design. He was the 13th car designer at the then “small company,” he said.

At the time, Hyundai was working on the next generation of Pony, the first Korean passenger car designed by the legendary car designer Giorgetto Giugiaro.

“Hyundai was largely dependent on the Italian designer. Because his agency was doing projects for other carmakers as well, its car design had no unique color until then,” he recalled.

A turnaround in Hyundai’s car design came in 1990 when a team of Korean designers unveiled the nation’s first coupe Scoupe after a fierce competition with an Italian design team. The car later affected the design of Hyundai’s first sports car Tiburon.

“I had never imagined Hyundai would become a global company as it is now. We used to hope to grow big enough to compete with Mitsubishi that supported us at the time,” he said.

In the 1980s, Japan’s Mitsubishi was selling 1 million cars, while Hyundai’s car deliveries remained at less than 100,000 units.

Now Hyundai, which owns Hyundai and Kia brands, has become the world’s fifth-largest company selling 6 million cars last year, gobbling up the global market share of Toyota and Volkswagen.

And the carmaker has become a workplace where talented car designers are willing to work, with the number of designers surging from 30 in the 1980s to 450 today.

Hyundai’s design center in the U.S. is currently led by former BMW designer Christopher Chapman, while its sister unit Kia Motors has Peter Schreyer, the former design chief at Volkswagen, as the design chief since 2006.

“I’m proud that many former Hyundai designers are now working for other global carmakers. Their working experience at Hyundai is highly recognized across industries,” Oh said.

“I believe design has played a pivotal role in elevating Hyundai’s global presence. Of course, the company’s advanced engineering prowess has met the designers’ vision.”

Since Oh took office as the design center chief in 2007, Hyundai has carried out diverse experiments in car design, ranging from the voluminous transformation of its flagship models Avante, Sonata and Grandeur to the three-door compact Veloster and the best-selling hatchback i30.

Under the existing philosophy of “Fluidic Sculpture,” Oh said that Hyundai’s future car design would become less “talkative” than it is now.

“So far, we have taken a very dramatic approach to express our identity and impress consumers. I think it’s time to introduce more defined design with more value added,” he said.

“We will continue efforts to maintain the dynamic and aggressive image of Hyundai cars. In the longer term, I hope design will become Hyundai’s key competitiveness.”

Hyundai seeks premium ranks with new design
 
I doubt it. It may be able to challenge the Japanese marks like Lexus, Acura, etc. German cars are more focused on drive experiance, and they own the top performance car marks, and so have acccess to tech that the Koreans and Japanese dont.

Mercedes and BMW produce the engines for a lot of European supercars.
 
That's not gonna happen, they can't even beat japs cars,,, when I drove japs and SK cars from friends, when speed upto 120 km, cars start to 'fly' very poor grip on roads....but when I drive my mercedes even itsup to 220 km I still handle with ease (apart from some expensive tickets)....

European cars are the best, no doubt,, especially the Italian and German brands, (Brits ones are bit over-priced, and like kind of 'social outcast' but still awesome)

My next aim is either a Audi Q7 or the new maserati Kubang
 
Don't bet on it. They are pretty close to Japs, my opinion changed when I experienced Huyndai Genesis, the new Equos is even better.

That's not gonna happen, they can't even beat japs cars,,, when I drove japs and SK cars from friends, when speed upto 120 km, cars start to 'fly' very poor grip on roads....but when I drive my mercedes even itsup to 220 km I still handle with ease (apart from some expensive tickets)....

European cars are the best, no doubt,, especially the Italian and German brands, (Brits ones are bit over-priced, and like kind of 'social outcast' but still awesome)

My next aim is either a Audi Q7 or the new maserati Kubang
 
Koreans are catching up pretty fast...
 
Unless they have a diffrent brand name for their luxury division like Toyota have with Lexus it is not possible to compete with Audi and BMW as Hyundai is known for selling affordable cars and not premium cars.
 
Unless they have a diffrent brand name for their luxury division like Toyota have with Lexus it is not possible to compete with Audi and BMW as Hyundai is known for selling affordable cars and not premium cars.
I agree, a lot of the appeal of German cars is heritage (Diamler offering the first internal combustion models). They would have to make a seperate division....then many many years of quality.
 
I doubt it. It may be able to challenge the Japanese marks like Lexus, Acura, etc. German cars are more focused on drive experiance, and they own the top performance car marks, and so have acccess to tech that the Koreans and Japanese dont.

Mercedes and BMW produce the engines for a lot of European supercars.

You have to look at build quality of German cars and compare it with Asian rivals to know where Germans stand. Also the driving experience of German cars is at a totally different level.

While Japanese cars are very nice, their switches, plastics and materials inside look on the economical side.

You dont need to drive a German car. Just touch the inside and play with any switch. It exudes quality. Asian car makers, it looks, are more focused on cost cutting and this includes their premium brands like Infiniti (Nissan), Lexus(Toyota) and Acura (Honda).
 
I agree, a lot of the appeal of German cars is heritage (Diamler offering the first internal combustion models). They would have to make a seperate division....then many many years of quality.

VW did release the Phaeton, priced similar to the S class. It failed in the North American market. Now keep in mind VW owns Audi, Bentley..
In fact the chassy used was the same for the Audi A8.

Brand perception matters a lot.

You have to look at build quality of German cars and compare it with Asian rivals to know where Germans stand. Also the driving experience of German cars is at a totally different level.

While Japanese cars are very nice, their switches, plastics and materials inside look on the economical side.

You dont need to drive a German car. Just touch the inside and play with any switch. It exudes quality. Asian car makers, it looks, are more focused on cost cutting and this includes their premium brands like Infiniti (Nissan), Lexus(Toyota) and Acura (Honda).

Totally agree. In fact the Japanese are crazy for the Beemers and Mercs. They know the Lexus are just suited Toyotas. Lexus models are sold as Toyota models in many places, including Pakistan.

Im a Lexus fan, but they really need to try to differentiate their designs more from the Toyotas. They look awefully similar.


A video I saw a while back comparing the Equus with the Bentley.

 
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Hyundai is a cheap rip-off of the original japanese Honda!
 
I own a German car. I test drove my friend's brand new Accord.

Mind you, Hondas are great cars and I personally like their Accord. But when I drove it, it felt like I was driving a toy car. Not only the steering felt like its going to fall off as it was so light, the pedals also had very little feel to them. When I touched the switch to wind down the window, the clunky sound felt like its a switch on some toy, not a brand new premium car.

I dont want to sound snooty or snobbish at all. But believe me after driving a German car for years, I just cant drive an Asian car anymore.
 
Toyota's concept of upscaling is to put fake wood in the car. That what they do to Toyota when they want to make it Lexus.

Most Lexus models have mainstream Toyota model underpinnings. So would you pay 30k more a badge only!?? In fact their engines are also same as contemporary Toyota models that you most probably see across the wall from Lexus dealership.

If they want to build a luxury brand, they need to start from ground up. Otherwise, they might start well, but in the long run, people will recognise the premium brands as spruced parent brand. This is unfortunately the reality of all Japanese luxury brands in the North American market.

A luxury brand thrives on heritage. Lexus heritage is Toyota, Acura is Honda and Infiniti is Nissan. So the heritage of all three is cheap, very reliable and economical cars. No doubt at all they are great cars but this is not the legacy that great brands are built on.
 
Interior wise I have found Audi build quality is robust and has a solid feel to it but when it comes to reliability the Japs do it the best with Lexus being number 1 in the J.D. Power quality ranking and Honda make those excellent VTEC engines that seem to never breakdown!
 

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