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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.

Hyundai: hydrogen cars will gain wider acceptance in 10 years

Hyundai Motor Company said Monday it believes hydrogen fuel cell vehicles are the future for eco-friendly cars despite challenges of limited infrastructure and slow sales. South Korea's largest automaker has sold or leased 273 Tucson fuel cell SUVs since beginning production in 2013, mostly in Europe and California. The company had plans to make 1,000 in its first year of production. Kim Sae Hoon, general manager at Hyundai's fuel cell engineering design team, said fuel cell cars represent a bigger opportunity than electric cars because competition is less fierce. Hydrogen-powered cars also give more flexibility to designers, he said. They can be scaled to big vehicles such as buses as well as small cars. They can also be refueled as quickly as gasoline cars while traveling more miles than electric vehicles. The Tucson's European version, called the ix35 Fuel Cell, can travel up to 594 kilometers (369 miles) while its US model travels up to 265 miles (426 kilometers) on one charge on the various government efficiency tests. It emits water vapor and no greenhouse gases. High prices and the dearth of fueling stations are barriers to sales of fuel cell vehicles. Hyundai said it will be another 10 years before hydrogen cars start gaining wider acceptance. In the meantime, sales of eco-friendly cars are dominated by hybrid models such as Toyota's Prius and electric vehicles such as the Nissan Leaf, which are more affordable than fuel cell cars. Hyundai also produces hybrid cars and electric vehicles. It plans to invest 11.3 trillion won ($10 billion) in eco-friendly technology including hybrid cars, electric battery vehicles and hydrogen fuel cells in the four years from 2015. To boost sales, Hyundai slashed the Tucson fuel cell's price in South Korea in February to 85 million won ($76,000) from 150 million won ($134,000). South Korean customers are local government offices as there is no government subsidy for consumers. South Korea's government plans to establish 10 charging stations for fuel cell cars and expects 1,000 hydrogen-powered vehicles will be on the streets in South Korea by 2020. Japan started production of hydrogen-powered cars later than South Korea but such vehicles are experiencing faster growth in Japan with support from Prime Minister Shinzo Abe's government. Toyota started sales of its Mirai fuel cell sedan in December and has decided to increase production to 3,000 vehicles in 2017, which is quadruple production this year.

Hyundai Genesis to get twin-turbo V6 in 2017 or 2018

Hyundai is looking to turbocharged power as ways to downsize its engines for better emissions and fuel economy while maintaining power. Among the new mills slated to launch is a twin-turbo V6 that's likely going into the Genesis in a few years. "You're going to see smaller displacement, more use of turbocharging. A lot of it is weight-related, all of it is CAFE-related," Hyundai Motor America CEO David Zuchowski said to Automotive News about the company's powertrain future. The Korean brand is hardly alone in this move towards downsizing, though, and practically every major automaker is moving in this direction, even Honda with the next Civic. According to Zuchowski, the twin-turbo V6 will make its way into the Genesis sedan in 2017 or 2018. The company is aiming for power to be on par from the luxury model's current 420-horsepower, 5.0-liter V8. The new engine should weigh less, though. The shift towards turbos is planned for the entire model lineup, not just Hyundai's higher-end vehicles. For example, the recently announced US-spec version of the 2016 Tucson now offers a boosted 1.6-liter four-cylinder with 175 hp and 195 pound-feet of torque. Several years ago, there were rumors about a possible turbocharged V6 for a future Genesis Coupe.