Hyundai to Launch Genesis as Separate Luxury Brand

Hyundai Motor Co. is expected this week to announce it is creating a new luxury brand under the Genesis name, sources tell Reuters.

The company introduced the Genesis nameplate in 2008 on a pair of luxury midsize sedans and coupes to test market acceptance of the company as a luxury carmaker. Hyundai added the larger $60,000 Equus luxury sedan in 2010.

Those three models will form the core of the Genesis line, with a crossover model to be added in about 2019, according to the news service’s sources. They say Hyundai will reduce marketing costs by selling the Genesis lineup through regular Hyundai outlets rather than an independent channel.

Hyundai is likely to position Genesis as an affordable luxury brand. Analysts note the luxury segment is financially attractive but also fiercely competitive and difficult to break into.

Some Reuters sources say Hyundai’s U.S. sales team frets that the South Korean carmaker is rushing into the segment too soon. The company has been contemplating the move since 2005.