How long does it take to rebuild a reputation? In the case of Hyundai, about 23 years. The arrival of the 2009 Hyundai Genesis signifies the complete rehabilitation of the Korean automaker from the ashes of its arrival in the United States in 1986. Not just an excellent car in its own right, the Genesis provides an exceptional value that allows Hyundai to stack up against any manufacturer in the world.

Those with long memories may recall the arrival of Hyundai in the United States with a car called the Excel. Several hundred thousand were sold at bargain-basement prices the first year the company did business here, and many wound up sidelined, either for repairs or for repossession from less than credit-worthy customers.

That first-year debacle haunted Hyundai for years, even after it expanded its product line, sharply improved its quality, and rebuilt its sales. This year Hyundai is the seventh most popular brand in the United States, outselling Chrysler, Jeep, Subaru and VW. On the JD Power Initial Quality list, Hyundai ranks 13th, ahead of such worthies as Acura, Volvo (F), and BMW.

How good is Hyundai? For my money, the Genesis is the finest car that you can buy for $42,000. That included a rear backup camera, front and rear parking assist, and a navigation system. In size and execution, you can argue that it challenges the Lexus LS 460 — and with a base sticker price that’s nearly $30,000 less. The Genesis is bit taller, three inches shorter, and weighs 700 pounds less than the Lexus. The lighter weight contributes to its excellent fuel economy (17 mpg city/25 mpg highway) vs. 16/23 for the Lexus. During several hundred miles of mostly highway driving, I averaged 23.8 mpg.

In shape, and character, the Genesis is also Lexus-like. This is a formal four-door sedan, with an emphasis on refinement over pizzazz, and comfort over performance. Those looking for driver feedback from the steering wheel or sporting composure through the twisties won’t find it here. Like the Lexus, the Genesis is powered by a 4.6 liter V-8 that is quiet, smooth, and powerful, and, in a pinch, it can get the Genesis to 60 miles per hour in under six seconds.

Where the Genesis cannot compete with the Lexus, of course, is on brand reputation. That may take another 23 years. But the Hyundai circle H logo, which appears on the trunk lid, looks better on the Genesis than on any other Hyundai I’ve seen. And since it doesn’t carry the kind of price premium that Lexus and other luxury makes do, it should be especially appealing in these coming months of diminished economic expectations.

The all-new 2009 Hyundai Genesis sedan has been capturing more than its share of the spotlight this year. The luxury-oriented four-door sedan was launched with much ballyhoo over the summer. With a long list of standard features, a choice of six- or eight-cylinder power, and its sights pointed directly at some heavy-hitting established competition, the sedan rolled into showrooms with high expectations. After a few short introductory drives, Hyundai put both models in the Autoblog Garage so we could spend some time getting a bit more intimate with its new players. How solid is the chassis, engine and powertrain? How does the sedan hold up to the daily grind? How does the late-arrival fare against its status-laden competition? Find out after the jump.

Autoblog has driven the Hyundai Genesis sedan on more than one occasion. We sampled it in May, and then flogged it on the track in June during its introduction. While both of our “first drives” were but a quick taste, this time we were generously able to spend ten full days split between the V6 (silver) and V8 (red) models. We commuted to work, drove carpools, took friends out to dinner and embarked on a one-day 250-plus mile road trip. Our goal was to subject the Genesis to a bit of everything and see how we felt about it at the end of the week.

The rear-wheel-drive Hyundai Genesis sedan is available in two models: Genesis 3.8 and Genesis 4.6. As is common in this segment, the chassis is shared with both models but the engine/powertrain is different. The Genesis 3.8 features a 290-hp 3.8-liter V6 mated to an Aisin 6-speed automatic transmission (MSRP starting at $32,250). The Genesis 4.6 rides with a 375-hp 4.6-liter V8 and a ZF 6-speed automatic (MSRP starting at $37,250). The exactly $5,000 price jump between the two models delivers the big engine, electro-hydraulic power steering, premium leather, a wood/leather steering wheel, painted bodyside molding (the easy way to tell the models apart), plus all of the equipment found in the V6’s optional $3,000 “Premium Package Plus.” Option to option, the 375-hp engine is a $2,000 cash upgrade and you still end up with more than a few exclusive bits and pieces. It’s not nearly the model price jump found on some near competitors (BMW charges $50,800 for the 300-hp 535i and $60,000 for the 360-hp 550i — before option packages). Hyundai appears to be paving its own road when it comes to an aggressive pricing model. (It is also interesting to note that the base MSRP hasn’t raised a penny since May of this year.)

At first glance, the exterior styling of the Genesis sedan isn’t polarizing. In fact, it’s rather benign. Hyundai studied its competitors, stole their favorite non-offensive styling cues, and then sculpted the Genesis. What emerged from their design team looks more like a sporty Lexus LS460 than anything else, but it hints at BMW, Mercedes-Benz and even Nissan. Without a double-take, most passers-by think it’s just another Lexus before they continue on their way. If they happen to glance a second look, the bright “Klingon” grille and lack of any front-mounted identifying badge draws confusion for another few seconds… then they move on. We received exactly two “thumbs-up” while driving the Genesis for ten days — both were from Infiniti owners. Mercedes owners refused to be caught staring, while Lexus drivers seemed perplexed at the look-alike when we drove alongside. The sleek styling of the Genesis reeks of luxury and quality… and that seems to concern the competition as they hide behind their badges.

The interior of the Genesis is very inviting and roomy. We fit four adults in with ease. As a testament to the generous second-row leg room, small child-seat riding children couldn’t kick the seatbacks even with a 6-plus footer in the driver’s seat. Although it isn’t quite up to the opulent Lexus standard (sorry, no yards of rippled leather), anyone would be hard-pressed to complain about comfort. The dash sweeps across the cabin with a thick band of chocolate leather, while the wood-grained accents are tastefully applied. The dash instrumentation is white on black, and the cockpit buttons glow with a modern blue hue at night. When the doors are opened in the dark, the cabin itself is bathed in LED illumination — it’s a bright white light that is immediately noticed (Hyundai calls it a “room” light, not a “dome” light, by the way). The pseudo-iDrive joystick control that comes with the optional Navigation System (it was on our V8 model) works very well. After a short acclimation period, we found it simple to use. The 8-inch display is one of the clearest we’ve seen, and the graphics are exceedingly clear with excellent contrast. Unlike other automakers in this segment that seem to think complexity equals sophistication, it didn’t take us long to familiarize ourselves with the cabin or its logical controls.

The Genesis sedan really doesn’t have any quirks to preclude it from family duty. It’s easy to climb in and out. Outward visibility is good, and it offers decent cargo capacity. The chassis is solid and the cabin squeak-free. In fact, the sedan effortlessly fell into our daily routine of commuting, errands, carpools and entertaining. We put strollers in the trunk and cleated soccer players in the back seats. After 240 hours of scrutiny, the new Korean flagship emerged mostly unscathed. We were, however, left with several strong impressions.

First, we stand by our original statement — the Genesis isn’t going to fool anyone into thinking it is a BMW. The suspension on the big Asian four-door is soft and comfortable, while the Europeans tend to be firm and controlled. The Genesis doesn’t challenge the driver to exit the off-ramp at double the posted speed limit like a BMW, or even Infiniti. It can handle it, trust us on that, but the tactile impressions the driver receives through the steering wheel and brakes beg civility, not anarchy. You won’t see a Genesis being driven in anger (just like you don’t see a Lexus LS diving hot into a corner during your daily commute).

Second, the Genesis is an effortless cruiser. We put 268 miles on the V6 model in one long day. Most of the driving was across the Los Angeles basin — a mix of mind-numbing traffic jumbled with periods of cars doing 75 mph merely feet apart. Then, we repeated the trip in reverse an hour later. Although our “seat time” must have exceeded seven hours, our derrières were pain free and our minds fresh. The cabin was hushed (a Cd of .27 and laminated acoustic glass help), the climate control non-intrusive and the seats accommodating. The optional adaptive HID headlamps keep the roadway well lit, and the self-dimming mirrors keep eye strain to a minimum.

Third, the Genesis 3.8 is the model of choice. Although the enthusiast in us subconsciously gravitated towards the V8, we actually found the smaller V6 more suited to our needs. The lighter six made the Genesis feel less resistant to directional changes resulting in a more enjoyable driving experience. Behind the wheel of a luxury sedan, we never found ourselves in a situation that warranted additional power, and the V6 was much more frugal at the gasoline pump when compared to its bigger and thirstier brother. If you must have a V8, go for it. However, Hyundai is betting most will opt for the 3.8 model — it’s the right selection in our eyes.

Finally, this luxury sedan is one extraordinary value. Taken strictly as a luxury sedan, the chassis, powerplant, and driving dynamics are on par with the best from Europe and Japan. Throw in the variables such as luxury amenities and innovative technical features, and the Korean again closely matches them at their game. Then, look at price. A fully-optioned 290-hp Genesis 3.8 won’t break $40,000 — that is nearly $5,000 less than the base price of the Lexus GS350. Optioned like the Genesis, the GS350 tops $52,000. The flagship Lexus LS460 starts at $63,675… nearly double the base price of the Genesis 3.8 sedan. Yes, the Hyundai Genesis is more than 90 percent the car of that award-winning Lexus flagship, yet at 60 percent of the price. Of course, the Hyundai isn’t going to carry the cachet of the Lexus… but most of your friends won’t know the difference until they are sitting inside the cabin, if then. We sample a lot of cars around here, and there is a “feeling” you get when you are behind the wheel of certain luxury marquees. The Hyundai Genesis has that same aura.

We are rightfully shoveling tons of praise on the Genesis, but there are still a few areas that could use some improvement — no, it is not perfect yet. If one is going to nit-pick the luxury sedan, the HVAC system could move a bit more air volume. On a blistering day when the car has been baking in the relentless Southern California sun for hours, the A/C seems to blow a summer storm when you really want an all-out hurricane. The LED interior lighting, some of the best we’ve seen, immediately goes full blast when the doors are open. At night, some unsuspecting passengers compared the abrupt cabin lighting to a flash bulb hitting their eyes (keep the LEDs, but give us progressive illumination). Then there is the sea of silver buttons under the navigation display. While the smooth and curvaceous dashboard may be aesthetically pleasing, it falls short ergonomically — it will never be intuitive. Drivers will have to pull their eyes from the road to adjust just about everything not found on the steering wheel.

It is only fair to also mention our complete exoneration of the 528-watt Lexicon sound system. In June, when forced to listen to satellite radio in the boondocks of Central California, we reported that “…we couldn’t get the 17 speakers to vibrate in pleasant harmony.” Back in Los Angeles and armed with an iPod, the upgraded sound package sounded great. We don’t masquerade as audiophiles, but the music flowing from the digitally-amplified system is sure to please any Genesis customer. Oh, the satellite radio still sounded horrible when compared to the radio, CD or iPod input.

We’ve secured the enviable task of evaluating dozens of new cars each year. While some are as unforgettable as last Wednesday’s fast food lunch, others (like the Lamborghini Murcielago LP640 and Nissan GT-R) will have us reminiscing the experience for decades. The all-new Hyundai Genesis sets a unique tone among our garaged vehicles. It’s not the fastest, smoothest, most comfortable or most luxurious. It’s not the most aerodynamic, innovative or technically advanced. What makes the flagship Hyundai memorable is its accuracy. While automakers are constantly shooting arrows into new segments hoping they will stick, few are able to hit their intended mark with their first shot. Hyundai has done it. Now, the automaker just has to figure out how to get the consumers behind the wheel in today’s shattered marketplace.

Source: AutoBlog.com

Ron Olsen could have bought a Mercedes-Benz, BMW, Lexus or another Cadillac.

Instead, the Boeing retiree decided to part with $40,000 for the new kid in the luxury sedan market — a Hyundai Genesis.

A what?

A luxury car from the brand known a couple decades ago as cheap, not-always-reliable wheels for college students and pizza deliverers?

Hyundai believes Genesis will show just how far it’s come from those days — and will be the ideal luxury car for post-financial-meltdown America. Maximum features. Minimum snobbery. A value proposition vs. more expensive brand-name luxury.

The Genesis is the culmination for Hyundai of a painstaking effort to become a big-league U.S. brand. It’s also fraught with risk. Genesis is betting that notoriously snooty luxury buyers can live without a Mercedes three-pointed star or other status emblem on their hood.

Hyundai also is taking a calculated risk by not creating a costly separate division for its luxury product, such as Toyota did with Lexus. It is banking that shoppers will buy a luxury car from dealers not devoted solely to pampering luxury customers. Genesis may sit door-to-door in the showroom with (horrors!) an $11,745 entry-level Accent sedan.

“It’s like buying an Armani suit from Wal-Mart,” observes David Champion, auto editor for Consumer Reports magazine.

Early results are lukewarm, with 3,976 sold since the six-cylinder Genesis went on sale over the summer. Buyers may have been waiting, however, for the top-of-the-line, 375-horsepower V-8 version, which didn’t arrive until October.

Hyundai isn’t the first to hawk luxury in a non-luxury store.

Volkswagen gloriously flopped with an upscale sedan brought to the U.S. in 2003. Phaeton, priced from about $70,000 to about $100,000 for a 12-cylinder version, lasted a couple of years before VW yanked it from this market.

Hyundai leaders say Genesis will do better than Phaeton because its price isn’t floating so far above the rest of the lineup. Genesis, they add, is a lot of car for the money — fitting the Hyundai brand’s value image.

“Price-wise, Genesis is $10,000 or $20,000 less than all the (luxury brand) competitors,” says Kim Dong-Jin, until recently CEO of Hyundai Motor in South Korea and now head of its parts operation. “Therefore, we see the Genesis as a good product for the U.S. customers, particularly in the recessionary period.”

In fact, they hope Genesis defines a new car segment: a premium machine for the rich and frugal who appreciate the finer things but don’t like to show off.

Genesis starts at $33,000, including shipping, for the six-cylinder. That’s about the same as a Mercedes C-Class or Lexus ES, but the size and features are aimed closer to the MB E-Class ($54,075 with shipping to start) or Lexus GS 350 ($45,675).

Gas mileage is in keeping with the value image, too. The six gets 27 miles per gallon on the highway; the V-8, 25 mpg.

Genesis is discreet, though, about its Hyundai heritage. The automaker’s “flying H” logo — but not the name — is seen on the center of the trunk lid and of the steering wheel. But it says simply “Genesis” below the taillight and on the door sills.

That modesty is a concession to owners who may not want to trumpet that they paid up to $42,000 for a Hyundai, even if that model is loaded with features that include a 17-speaker stereo and heated and cooled seats.

Olsen, 72, of Everett, Wash., says he takes some ribbing from golfing buddies for giving up his Cadillac DeVille for a black Genesis. “I tell them, ‘It’s a Genesis, not a Hyundai,’ ” noting that they’d never refer to their Lexuses as Toyotas.

Showing how far it’s come

Executives hope Genesis lifts the entire Hyundai brand. They want it to show how quality has improved, even with Hyundai’s signature 100,000-mile warranty, introduced nearly a decade ago in a bid to regain trust. Since then, it has patiently worked to inch up market share and catch up with rivals’ technology.

“Genesis says we’re a global player. We can compete with anybody on style and value,” says Dave Zuchowski, Hyundai America’s vice president of sales.

Hyundai still is a distant seventh in U.S. sales behind the Detroit 3 and Japan’s Big 3 through October of this year, Autodata reports. But sales are down only about 8% from 2007 to about 360,000 — respectable in today’s sales implosion — while its share moved above 3%.

There are other signs the brand is gaining traction. As recently as 2005, focus groups called Hyundai “unapproachable.” This year, more are picking terms such as “young, playful and a little quirky” and “for smart people,” says Joel Ewanick, Hyundai’s marketing chief.

“You’re seeing the tipping point,” he says. “This is when the consumer is discovering it.”

In 2000, only about 6% of car shoppers put Hyundai models on their consideration list. This year, it’s 25% — good, but still not as good as Toyota and Honda.

“Still a perception gap,” Dong-Jin says. “It takes time. There is no quick fix.”

Hyundai strongest in basics

Hyundai has been most successful with its everyday vehicles, such as its Elantra and Sonata sedans and the Santa Fe crossover SUV. It has had a harder time pitching more upscale products, such as the Azera sedan and Veracruz crossover, which can carry stickers north of $30,000 with popular options.

Regarding Veracruz, Consumer Reports’ Champion says, “I’m not sure whether it (the field) is getting too crowded or people are unwilling to spend more than $30,000 on a Hyundai.”

As a result, and mindful of the current economy, Hyundai officials are lowering sales expectations for Genesis. It may end up generating maybe 5% of Hyundai’s U.S. sales, says Zuchowski, “but it’s really important from a ‘halo’ standpoint.”

A “halo” is a premium or performance model that bestows image luster on its lesser cousins in the lineup. Most shoppers will buy the cheaper or more practical models — but feel better about doing so.

Richard Baker knows. The Florida dentist and his wife brought her Santa Fe to a dealer to get the oil changed. They left with a Genesis for him and an Elantra for her.

Baker, 38, of Crystal River, Fla., wasn’t done. A month later, he traded his first Genesis for another one with the $4,000 technology package. Buying premium sedans from a Hyundai store wasn’t an issue. “I’m not a fancy person,” says Baker, who traded his Toyota Avalon.

Luxury by any other name

Hyundai studied the idea of a separate unit with its own brand name for the Genesis sedan and sexy coupe due next year — the way Toyota, Honda and Nissan created Lexus, Infiniti and Acura for premium models — says Bob Cosmai, a former Hyundai Motor America CEO. It found creating a separate dealer network requires lots of money and patience. Luxury divisions sometimes aren’t profitable for a decade.

A risk, however, is that many luxury customers have come to expect the pampering they can get at dealers that sell only premium vehicles, says Tom Libby of the Power Information Network. Lexus owners “come home speechless about how well they were treated,” he says.

Many luxury dealers offer service customers loaner cars and roadside assistance, for instance. And three of the four top-rated brands for customer service in J.D. Power and Associates’ 2008 survey were luxury brands: Jaguar, Cadillac and Lexus. Hyundai ranked 22, the industry average.

Hyundai salespeople are getting “a different kind of training” to handle potential Genesis buyers, says Scott Fink, who owns dealerships in New Port Richey and Wesley Chapel, Fla. The training is “making it clear these consumers have much higher expectations.”

Even without a luxury unit, some experts think Hyundai has a shot. While noting the difficulty in taking on the likes of BMW and Lexus, Michael Silverstein, a senior partner with the Boston Consulting Group, says “if Hyundai has the staying power,” and underprices its chief rivals, “the market will move their way.”

Hyundai also must be willing to make a huge outlay for ads, even though the high-end market is less than 10% of sales, says Silverstein, whose books include Trading Up: Why Consumers Want Luxury Goods.

Milton Pedraza, CEO of the Luxury Institute, credits Hyundai with having turned around the core brand to a point where it can reach out to luxury buyers under that name. Genesis “can only enhance their reputation.”

It worked for Brian Singletary.

The supermarket manager in New Port Richey says he happily left behind his Lincoln for a Genesis. He says he loves the smooth ride and gets luxury-car status at a local casino: Valets park the Genesis right on the curb with other luxury cars.

“Once I got into this (Genesis), there was no need to go shopping further,” Singletary says.

Olsen says he’ll stack his South Korea-made Hyundai against the best from Germany or Japan. He raves about the leather upholstery, fancy stereo and power that gives him “a helluva time” keeping his speed from creeping past 80 mph on the highway.

He says his friends tell him it looks like a BMW or a Mercedes, but says that status is not important to him. “I looked at more than just a name.”

By Chris Woodyard, USA TODAY
LOS ANGELES
Contributing: David J. Lynch

The new 2009 Genesis moves Hyundai into the premium sports sedan market with its all-new performance driven rear-wheel drive architecture, a first for a U.S. Hyundai model.

This car company introduces their flagship offering that rivals some of the leading premium sports sedans in the industry. In fact, Hyundai engineers benchmarked the Mercedes E-Class, BMW 5-Series, Infiniti M and Lexus GS models in developing this new entry.

The new Hyundai Genesis claims more cabin space than the BMW 5-Series and the Mercedes-Benz E-Class. The Genesis has more interior volume than the E-Class and the BMW 7-Series. “The new Genesis will actually compete for customers with cars like the Chrysler 300 and Pontiac G8, the Lexus ES and the Cadillac CTS”, according to John Krafcik, vice president, product development and strategic planning, Hyundai Motor America.

Hyundai has become known for offering value and conveniences well above their vehicle price points. The 2009 Genesis is no exception with capabilities and features comparable to the world’s leading sports sedans.

The handsome Hyundai Genesis V-8, can be judged by its cover. Inside and out, the value and luxury is evident.

Pricing for the 3.8-liter V6 model starts at $33,000. including freight charges. The 4.6-liter V8 has a starting price of $38,000. inclusive. The Genesis offers two powertrains, the 3.8-liter V6 engine and Hyundai’s all-new 4.6-liter V-8 engine. The V-8 will produce 375 horsepower using premium fuel and 368 horsepower using regular unleaded gasoline. The engine is designed to operate on either grade of fuel.

The V-6 engine delivers 290 horsepower and 264 pound feet of torque. Even with their impressive output, both Genesis engines are also environmentally friendly, achieving Ultra Low Emission Vehicle (ULEV) certification levels.

Each engine version has its own specifically designed six speed automatic transmission to further enhance performance while maintaining optimum fuel economy. Both transmissions include the SHIFTRONIC manual control feature with an overdrive lock-up torque converter responsible for the impressive fuel economy for this 3,748-pound car with the V-6 and 4012-pound vehicle weight for the V-8 equipped model. Fuel economy is 18 city and 27 miles per gallon highway for the 3.8-liter V-6. The 4.6-liter V-8 attains 17 miles per gallon city and 25 miles per gallon highway.

The new Genesis has built-in impressive technology features as well. Electronic active front head restraints are proven by the Insurance Institute for Highway Safety to help prevent whiplash. The Genesis is the first popular brand to offer these restraints, previously only found on select Mercedes-Benz, BMW and Lexus models.

Standard Electronic Stability Control (ESC), the industry’s most important new safety technology, further enhances the vehicle’s driving confidence. Hyundai leads all popular car brands in the standard application of ESC, with more than 70 percent of 2008 Hyundai sales featuring ESC as standard equipment.

Genesis’ total of eight airbags include advanced dual front airbags, front and rear seat-mounted side-impact airbags and roof-mounted side curtain airbags for both front and rear outboard seat occupants. Heated front seats as well as a cooled driver’s seat add to the comfort factor in this well appointed luxurious sport sedan.

Xenon high intensity discharge (HID) headlamps with an adaptive auto-leveling function keeps the headlights level regardless of how the vehicle is loaded with passengers or cargo. Genesis also offers an Automatic Front Lighting System that allows the headlamps to automatically swivel for better visibility when cornering.

The most impressive side of the new Genesis is getting behind the wheel and experiencing the drive.

The standard luxurious feel of the soft touch instrument panel with wood grain accents enhances the seating position in the wrap around cock pit configuration. The Lexicon advanced audio system delivers everything as advertised. Bluetooth hands-free mobile phone interface, and USB/iPod auxiliary inputs are useful additions.

Available is a navigation system with an eight-inch display as well as a large display to show the driver a clear view immediately behind the car with backing up. A power rear sunshade, a standard proximity key with push-button starter reminds you that this economically priced sports sedan is actually in the class with the big boys.

The drive is smooth and quite while having the ability to handle all sorts of twisting roads and uneven pavement with ease, always giving the driver a confident feeling of being in complete control.

The attractive styling on the outside is only part of the story. The 2009 Hyundai Genesis is a car to be experienced from the inside were the large array of surprise and delight features reside.

Art Gould
SPECIAL TO THE WASHINGTON TIMES