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Genesis cars win accolades, offer value — so why are sales so bad?

My high-school buddy Brent Cormier was so smitten with the Genesis G80 when he saw it at an event I hosted at SXSW in 2016 he bought a used 2013 Hyundai Genesis a short time later and fell in love with the car. "It surpasses my every expectation," said Cormier, a self-described "renaissance man" who owns and runs a real estate agency with his wife Laura, is a food service executive chef and part owner of Austin-based Thin the Herd Guitars. "I was locked into Mercedes and Audi for 10 years," he added. "And felt trapped in an endless pit of maintenance costs." After owning the Genesis over the past two years — including using it as an Uber and Lyft driver to earn extra cash — Cormier learned what some frugal luxury sedan buyers and a handful of car reviewers have discovered: Genesis offers great bang for the buck compared to other premium brands and can compete with the best in terms of performance, features and comfort. Hyundai's luxury brand also earned a prominent third-party endorsement last week when for the first time Genesis topped J.D. Power's 2018 APEAL study, surpassing German luxury-performance icon Porsche. The APEAL study (which stands for Automotive Performance, Execution and Layout) "measures owners' emotional attachment and level of excitement across 77 attributes," ranging from performance to comfort, and asks nearly 68,000 owners of new 2018 models to score vehicles on a 1,000-point scale. In its second year ranked as a stand-alone brand, Genesis earned an APEAL score that bumped it up 15 points to 884 and helped push it past Porsche — and past BMW, Lincoln, Mercedes-Benz, Audi, Volvo, Cadillac, Land Rover and Lexus, in order of ranking. Last month, Genesis also topped J.D. Power's Initial Quality Survey (IQS) for the first time this year. And both its models were awarded Top Safety Pick Plus ratings by the Insurance Institute for Highway Safety, among 11 Plus ratings in all for Korean vehicles. Despite high J.D. Power rankings and great reviews, Genesis U.S. sales were off 50 percent for the first six months of 2018 compared to 2017, and in June Genesis sold only 796 vehicles — the first time U.S. numbers dropped below 1,000 in a month. Part of Genesis's APEAL and IQS success can be attributed to its small product lineup: just two models, the G80 and G90 sedans, with a third, the 2019 G70, launching later this year. And while those numbers may help in J.D.

Infiniti Q50 Red Sport 400 priced at $48,855, AWD at $50,855

Infiniti's most powerful production model, the new Q50 Red Sport 400, now has a starting price. You'll need at least $48,855 for the rear-drive model or $50,855 for all-wheel drive. (Both figures include the $905 destination charge.) A fully loaded, rear-drive Q50 RS400 with Direct Adaptive Steering, navigation, adaptive cruise control, a heated steering wheel, and Infiniti's entire alphabet soup of safety equipment, tops out at $57,045. (Again, add $2,000 for AWD). When it comes to rear-drive competition, the closest base price to the Q50 is the 320-hp BMW 340i. This German undercuts the Infiniti by two grand, $46,795 to $48,855. But the BMW outprices the Q50 as soon as you start selecting options. A 340i with similar equipment to a loaded Q50 Red Sport 400 costs just under $60,000. All-wheel-drive German competitors also lose out in the price war. Like with the rear-drive models, the BMW 340i xDrive undercuts the Q50 RS400 by around $2,000. Add the options, and the Infiniti becomes a better value. The other two big German rivals, the Audi S4 and Mercedes-Benz C450 AMG start at a higher price and only get more expensive. Technically the S4 starts cheaper than the Q50, but only with the standard manual transmission. Selecting the S-Tronic dual-clutch model kicks the price from $50,125 to $51,125, and going for the top-end Prestige trim will bump potential Audi owners up to $57,025. Throw on must-have S4 options, including adaptive cruise control, adaptive dampers, and a sport differential and you'll be shell out $64,425 for the Audi. The Mercedes-Benz C450 AMG is the priciest choice in this group, starting at $51,725, or roughly $900 more than a base Q50 RS400 with AWD. Options, again, are the downfall here. Building a C450 to match a loaded Infiniti will drive the Mercedes' price up to $64,315. While it occupies something of a weird space relative to these vehicles, it's also worth mentioning the Cadillac CTS VSport. It's the only car in this impromptu pricing comparo that can outgun the Q50, with its 3.6-liter, twin-turbo V6 good for 420 hp and 430 lb-ft of torque. It also starts at $60,950, although that includes plenty of standard equipment. All this means that the Q50 Red Sport 400 represents a relative value. It packs more power than the Germans – 80 more than the 340i, 67 more than the S4, and 38 more than the C450 – and a more comprehensive list of options, too.

BMW 2 Series Active Tourer is the world's first front-drive Bimmer [w/videos]

While BMW has been showing concepts for its Active Tourer for over a year, they never seemed entirely real. Why would BMW, a company that has built its image on sporty, rear-wheel drive sedans, move into the five-door, front-wheel-drive market? The answer is still not entirely clear, but the new BMW 2 Series Active Tourer is very real. It launches in Europe later this year and is rumored to come to the US in 2015.
To brand purists, a front-wheel drive BMW may seem anathema to everything the company has built, and the production Active Tourer has clearly been built to provide drivers with a luxurious but utilitarian package first and foremost. It is 170.9 inches long and rides on a 105.1-inch wheelbase, but despite its compact dimensions, its high roof allows for 16.53-cubic-feet of cargo space with the rear seats up or 53.33 cubic feet with them folded flat. Its general appearance is nearly identical to the previous concepts, except with a blunter nose and cleaner lines. The front end wears BMW's traditional dual circular headlights and naturally, while the profile incorporates the company's traditional Hofmeister kink into the greenhouse's rear pillar. The interior has been designed to be especially useful with a sliding rear seat, adjustable rear backrests, fold-flat backrests and optional features like an automatic tailgate and panoramic sunroof.
Unlike both previous concepts, none of the Active Tourer models at launch use hybrid power. For Europe, the hatchback is going on sale with three engine options. The basic version is the 218i Active Tourer with a 1.5-liter, turbocharged three-cylinder with 134 horsepower that we just previewed in the 2014 Mini Cooper - good enough for average fuel economy of 48 miles per gallon in the EU cycle when equipped with a six-speed manual. The next step up is the 225i Active Tourer with a 2.0-liter turbocharged four-cylinder that makes 228 hp and offers 39-mpg average fuel economy. Finally, there is the there is the 218d Active Tourer with its 148-hp, 2.0-liter turbodiesel and 57 mpg average fuel economy on the EU cycle. A six-speed manual is standard on all of them, but there is a six-speed automatic option for the 218i and eight-speed automatics available for the 225i and 218d. All-wheel drive will be available on future models.