Thursday, November 5, 2015

Spin-Off: Hyundai Genesis Is Becoming Its Own Standalone Brand

BOLD RIDE

 
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The Hyundai Genesis sits near the top of the company’s lineup, and now they have plans to spinoff that car into a premium brand. An announcement is expected this week as they hope to boost their profitability.

The new brand will likely be sold through the existing distribution channel initially, but that could change as the plan unfolds. The Genesis launched back in 2008 as a luxury midsize sedan and was followed shortly after by the Equus flagship sedan.

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The new Genesis lineup will be a small grouping of upscale products. It won’t be physically separated from the brand, according to Reuters. The move would also help Hyundai take its brand image in a more upscale direction.

The Genesis sedan was a test of luxury waters at a time when the company wasn’t yet ready to make a standalone brand. Now, a strong Korean won is taking a bite out of sales revenue outside Korea. Since 75 percent of the company’s sales are outside Korea, the effect is huge. How well the public will receive the idea of an upscale Hyundai brand remains to be seen.


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