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Customer LoginsGenesis announces pricing of G90 sedan
Genesis Motors has announced the pricing of its G90 sedan, offering an simple pricing strategy that undercuts traditional German premium brands in the United States. The G90's launch pricing range is USD68,100−72,200 and the car has a high level of standard equipment for the segment.
- Significance:Genesis Motors has announced the pricing of the all-new G90 flagship sedan, one of two launch products of Hyundai's new premium brand. The newcomer brand needed pricing to reflect the prestige of a premium brand, while recognising that it is not established enough to command the top-end of segment pricing. Largely, the G90's pricing is successful here.
- Implications:
- Outlook:The short-options pricing structure allows Genesis buyers to focus on the experience and ensures every G90 buyer receives full-tilt Genesis luxury, and it delivers a consistent approach compared with the previous-generation Hyundai Equus. Consistency in pricing strategy as well as product execution can help earn customers' trust over time and is key to developing a Genesis-specific personality. The long list of standard equipment eases complexity for Genesis's ordering and build processes, as well service issues, at a time when refining and delivering a consistent experience are critical for long-term success.
Genesis has become only the second luxury brand to be launched in the United States this century. Supporting the occasion, the Hyundai premium brand held a media briefing and ride-and-drive event for the brand's flagship G90 sedan recently, which IHS Automotive attended. With the announcement of the G90's launch pricing, we focus on the sedan and its prospects. An earlier report goes into more detail on the overall brand strategy. As a new brand, Genesis needed a pricing to reflect the prestige of a premium brand, while recognising that it is not established enough to command the top-end of segment pricing. Largely, the G90's pricing is successful here. And once these buyers are in, Genesis plans to deliver an ownership experience to retain their loyalty.
In product terms, Genesis is launching the G90 as its flagship vehicle, which is roughly the size of an Audi A8L, Mercedes-Benz S-Class, or BMW 7-Series. The G80 serves as the entry car to the Genesis brand, and essentially a facelift and new name has been given to what was the Hyundai Genesis sedan, and it is taking on the Audi A6, BMW 5-Series, and Mercedes-Benz E-Class. A broader range of products, including the now-required sport utility vehicle (SUV) options, will be introduced between 2018 and 2020.
The G90 is the launch vehicle and sets the tone for what Genesis will become. Yet it does not fully embody what Genesis will be, once the brand is fully developed and formed. The platform and powertrain are not shared with Hyundai brand products, but evolved from initial choices made while the vehicle was intended to be sold under the auspices of Hyundai, a premium vehicle for a Hyundai price. It is reasonable to expect that future Genesis products will find a more clear design, performance, and technology personality.
The G90 is a handsome vehicle, fairly successfully borrowing cues from other traditional luxury makers. The car is elegant and attractive and oozes presence. When entering a fundamentally conservative segment, elegance is a good step forward. The interior is well-suited for a high-end luxury sedan, though it stops short of including elements like Audi's completely digital gauge clusters and driver information centre. One technological first the G90 does claim, however, is that its connected car services can be accessed through Amazon Alexa. Adding this technology helps position Genesis as being ahead of the curve in telematics and connected-vehicle services, in line with the brand's decision to focus on ownership experience as a key differentiator in the premium space.
The G90 has taken another significant step forward in closing the execution gap with top-tier premium makes − previous Hyundai Equus versions were shy of the mark − although traditional top-tier luxury brands offer a deeper technology suite. The infotainment system is slick and graphics intuitively and expressively communicate car systems. The driver information centre and head-up displays are configurable and full-colour, although the tachymeter and speedometer are still analog. The navigation and infotainment system information is displayed in a beautiful 12.3-inch display. A 17-speaker, dynamic Lexicon audio system is standard, complete with stainless-steel speaker covers that are works of art, inspired by executions like Lincoln's high-end Revel, Audi's Bang & Olufsen, and Mercedes-Benz's Burmester sound systems. Among the differences − and indicative of Genesis needing to provide high-value to stand out − is that the Genesis Lexicon system is standard, whereas other brands' systems are expensive options.
Also unique among the competition, the G90 and the G80 receive advanced safety technology as standard equipment. Genesis capability is not cutting edge, but it is the first premium brand to make the full suite of features standard. This includes smart cruise control, high-beam assist, smart blind spot detection, multi-view camera, lane-keep assist, rear cross-traffic alert, driver attention alert, and automatic emergency braking with pedestrian detection. While having these elements on the standard list is a differentiator in today's market, IHS Automotive's research suggests that, overall, consumers believe safety-related systems should be standard, similar to anti-lock brakes and electronic stability control. Genesis may be at the forefront of a gradual shift towards more vehicles having these safety features as standard.
The G90 takes two available engines at launch, a new 365-hp twin-turbo version of Hyundai's Lambda 3.3-litre V6, which the company expects will be under the hood of more than 80% of G90 sedans sold in the United States, and the optional carryover 420-hp 5.0-litre Tau V8. Both engines are mated to an 8-speed automatic transmission. Rear drive is standard and all-wheel drive is optional, essential for premium product sales in the snow belts of the US. We drove the V6, rear-drive configuration. The powertrain is confident and smooth, and the chassis struck the right balance between supple and sporty on roads around Vancouver, British Columbia, Canada. An interesting twist on the traditional drive-mode set-up is the 'Smart' setting, alongside 'Eco', 'Comfort', and 'Sport'. The Smart setting, we were told, will adjust to the current behaviour of the driver. If the car senses the driver is being more aggressive, it will essentially shift to the Sport setting, for example. Genesis also earlier indicated that it will add plug-in hybrid electric vehicle (PHEV) variants to the range, which it will likely need to ensure it meets future fuel economy and emissions standards.
Outlook and implications
The pricing structure of the G90 allows Genesis buyers to focus on the experience and ensures every buyer of the sedan receives full-tilt Genesis luxury, and it delivers a consistent approach compared with the previous-generation Hyundai Equus. Consistency, on pricing strategy as well as product execution, can help earn customer trust over time and is key to developing a Genesis-specific personality. The long list of standard equipment eases complexity for Genesis's ordering and build processes, as well service issues, at a time when refining and delivering a consistent experience are critical for long-term success.
The G90 pricing does represent a premium over the outgoing Equus − the roughly USD6,000 increase in base pricing brings with it an improved level of standard technology and materials. Genesis' pricing is well-placed for the competitive landscape − less expensive than the traditional German premium brand big sedans and about the same as the ageing Lexus LS sedan. The pricing strategy, as with the previous Equus, is limited on options and long on standard equipment. The strategy should help the brand build credibility in the premium space, particularly for buyers new to the luxury space.
At the Genesis G90's media launch, Genesis executives said that they expect the V6 option to account for about 80% of sales. Genesis is giving the vehicle an extremely high level of standard equipment, which has narrowed the gap between the base and full-specification vehicle. Empirically, the launch pricing makes the V8-, all-wheel-drive-equipped car a more attractive option. A relatively modest USD4,100 brings the larger engine, all-wheel drive, and a few more creature comforts, compared with the entry rear-drive 3.3-litre V6 car, and only a 2 mpg fuel-economy penalty (for context, this would mean the all-wheel-drive V8 powertrain would consume only 83 gallons more of fuel over 15,000 miles than the V6, rear-drive powertrain).
By comparison, the difference between the G90's pricing and the base price of Audi's standard A8, front-drive V6 and the V8 option, offered only in the Quattro all-wheel drive, is USD9,000, with a significant equipment difference as well as powertrain upgrade. The standard BMW 740i (rear-drive, V6) starts at USD81,500, while the V8, all-wheel drive 750i XDrive starts at USD94,600 − a USD13,100 difference. The Cadillac CT6, which offers a standard 4-cylinder engine and optional V6 units, starts at just less than USD55,000 and this climbs to USD65,390 for the top V6, all-wheel-drive combination, a gap of more than USD10,000.
About this article
The above article is from IHS Automotive Same-Day Analysis of automotive news, events and trends, and is a deliverable of the World Markets Automotive Service. The service averages thirty stories per day and also provides competitor and country intelligence. Get a free trial.