Hyundai Equus: White knight or dead horse?
While other auto companies are rapidly shifting into reverse, Hyundai is pushing forward with plans to introduce its first super-luxury sedan, the Equus, to America. First seen at the New York International Auto Show, the Equus will be displayed nationwide this summer as Hyundai seeks to gauge public reaction to this high-end model. (See "The Genesis of Hyundai’s luxury brand?")
In Asian markets, the Equus competes with the prestige-brand flagships such as the BMW 7 Series, Lexus LS, and Mercedes-Benz S-Class. It’s a big, rear-drive cruiser that is a step up in size and price from Hyundai’s upscale Genesis sedan, upon which it is based. Should the Equus be sold in the U.S. market, it would likely come with the same 375-hp, 4.6-liter V8 used in the top-trim Genesis, plus the full panoply of high-end, high-tech interior amenities one expects in the luxury class.
South Korea’s Hyundai has come a long way from the old cheap-and-crummy days to become one of the top brands in quality and reliability. The Equus shows just how far the company has come.
Today, we recommend most current Hyundai models we’ve tested, which is nearly all of them., The question for consumers is how much “image” they’re willing to give up for the sake of underlying quality and value. The luxury market is hard club to join, since so much depends on positive buzz and intangible curb appeal. The key issue of price is not yet settled, either. USA Today speculated that the Equus would weigh in at around $75,000, comparable with the base BMW, Lexus, and Mercedes-Benz flagships. But that’s not the formula Hyundai has followed so far, or indeed, the formula used by Toyota when it launched the Lexus brand. To succeed, the price would probably have to be lower, say under $60,000.
The Lexus LS met rapid acceptance because it was a terrific car that started out much cheaper than its European competitors, and because it promised Toyota-levels of reliability, something the Europeans still aspire to. Hyundai plowed the same furrow with the Genesis. The V6 version is equipped like a $50,000 car but is priced in the mid-to-high $30s. Therefore, we would expect that Hyundai would try steal a march on the $75,000 luxury corps by starting Equus pricing much lower than that.
Hyundai’s foray into the deep end is not so much a plunge as a toe in the water. The Equus has already launched in South Korea, and the company plans to import only about 100 of them into the U.S. this summer, serving equal parts consumer survey and marketing tool. This approach has much upside, and it reduces the risk of a potential flop, like Volkswagen had with the pricey, heavy Phaeton a few years ago. If the Equus has legs, then Hyundai will have only to ramp up production for its U.S. model as needed.
How do you think the Equus would be received in the States?
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Posted by: Sal Collaziano | May 9, 2009 1:43:00 PM
USA Today is wrong - and everyone keeps spreading the rumor anyway. This car will not start at $75k like it's competitors. It'll start closer to $50k. There will be a 3.8 liter v6, a 4.6 liter v8 Tau and a 5.0 liter v8 version as well, possibly supercharged. In order to succeed, this car needs to be priced like a Cadillac DTS or Lincoln Town Car (maybe slightly higher) but compete with the BMW 7-Series, Lexus LS and Mercedes S-Class. The only question is pricing because it has all the amenities and power it needs to compete with the big guys.
Sal Collaziano
Posted by: Derrick G | May 11, 2009 12:20:37 PM
I have to wonder where USA Today came up with such a price. Did they just do a Won to Dollar conversion? True, Hyundai claims that while the Genesis was engineered to a price point, the Equus wasn't. Still, can't imagine they did so well that this car can make it in the US for that kind of money. I'm thinking it'd have to start around $50-55K to make it here. I'm doubting a V-6 will be offered unless gas really spikes. Even then, I'd suspect it'd have to be a version of the new QOHC Lambda II family, not the current V-6. And the 8-speed auto would need to be ready for it. The 5.0L version of the V-8 is what Motor Trend is claiming would be standard, but I'm thinking it'd be an option only.
One thing that Hyundai would have to do is bring all the goodies available in Korea over here to compete, something they've not done with the Azera and Genesis.
Posted by: Sal Collaziano | May 12, 2009 12:00:16 AM
Derek,
If this car does come to America - and it more than likely will - it's supposed to start in the mid $40s with a 3.8 liter V6 - which should propel the vehicle to 60mph in about 6.5 seconds.. Not bad.. Standard is supposed to be the 4.6 liter Tau V8. A 5.0 liter version of the Tau, possibly super charged, should be an option - and will be at the top of the price range - probably somewhere near $65k...
Hyundai will NOT leave ANY luxury feature off this car like they've done with the Azera and Genesis. This is the real deal...
Sal Collaziano
Posted by: Derrick G | May 12, 2009 9:42:16 AM
Sal,
My name is right in front of you in print. Is it really too much to ask you to spell it correctly?
Posted by: Derrick G | May 12, 2009 10:00:37 AM
For those wanting to see more detailed photos, go to:
http://www.flickr.com/photos/alexkrafcik/sets/72157617792496605/
Be forewarned that these are of a Korean spec V-8 model (hence the vertical grille) and were taken by the son of HMA's CEO.
Posted by: Robin Alan | May 13, 2009 2:11:38 PM
There are 5 of these on the lot near my office right now. This is at the port in CA where the cars ship in and out. Anyway, the Equus is a beautiful car, especially inside. As you all say above, if the price was just above the Genesis say at 45,000 it would sell. Hyundai needs to give their luxury cars a few years for people to become aware of them , and to prove reliability. I paid almost 45K for a Volvo S80 that gave me constant trouble, so for the same money this car would really look good. Now, if only America still had good paying jobs so the middle class had some income. Under G. Bush my savings and my job disappeared so I will never again buy a nice car. Sob! Poor me!!
Posted by: Matt | May 14, 2009 2:23:14 PM
This will be good for variety as long as they can continue manufacturing low cost and fuel efficient vehicles.
Posted by: Alex | Jun 2, 2009 9:51:56 PM
Was luck enough to be able to drive one of these. Let me tell you, this is one of the most incredible cars I have ever been in. Features are incredible. To think Hyundai produces this car would boggle just about any American's mind.
Posted by: Andrew | Jun 20, 2009 9:35:19 PM
If Hyundai is going to kept trying to fight its new path into the luxury portion of the auto industry, I think they should be best with introducing a luxury brand with Genesis moved upward to truely compete with the luxury-midsized segment but with a much lower price. Many people looks for the badge instead of what the car really contain in it. If a Hyundai-based luxury brand is introduced, people would know THIS car with this THIS badge is a luxury car.
Posted by: Joe | Jul 14, 2009 1:16:54 AM
This car is now on display at Atlantic Hyundai in West Islip NY. It is unbelievable!!! Suede interior roof! The leather is like butter! Front and rear cameras, Folding table on rear seats! Reclining rear seats! Direct TV DVD Player!! Unreal car! This is Hyundai's version of the Maybach!
Posted by: PLM | Aug 3, 2009 3:11:26 PM
Just saw this car today and it is beautiful full of elegant extras. Front end resemblesa Rolls. Inside is luxury.
Posted by: Henry Tuttle | Aug 15, 2009 7:46:08 AM
I own an LS460L. I bought it for the comfort. The name brand means little to me. But, of course, all else being equal, I'd rather have the better name brand.
If the Equus is as good as it sounds, I'd be happy to save the money and buy one if the price is right. Low 50's would be good. An "entry level" LS460 runs in the low 60's, so it would depend on how the car compares to that.