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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.

Production Lexus NX leaks online

The first photos of the new Lexus NX crossover have leaked onto the web over a week before its official debut at the Beijing Motor Show. These pictures are pretty blurry, but there is no mistaking that they show off the Japanese luxury brand's smaller, premium CUV.
While the teaser only gave us a glimpse at its pointed strip of LED running lights and angular grille, the new image proves that the CUV is definitely not afraid of sharp edges. However, compared to the original concept, it looks almost sedate. The production version drops the knife-like side mirrors for more conventional units, and the grille appears narrower. The vertical intakes at the edges of the front are dulled slightly but still present. The NX is indeed a polarizing vehicle - we'll be interested to see it in person. After all, we've grown to like the new IS after our first, shocking reaction. We should give Lexus some credit, too, for not following the premium CUV styling herd.
Seen elsewhere, these's an exterior photo that hints at a powertrain configuration. The bumper reads NX 300h, which likely indicates that there will be a hybrid version of the CUV. This is likely the same combined 220-horsepower system with a 2.5-liter Atkinson-cycle engine and electric motor found in the IS 300h in Europe. There is no word on whether that model will be sold here. It's rumored to be offered with a new 2.0-liter turbocharged four-cylinder as well. More details about the new Lexus are expected in China later this month.

Satisfaction with dealer service rises, Lexus and GMC are tops

During the economic downturn, many car dealerships counteracted their slowing income by focusing on things that would set them apart from competition - things like the quality of customer service they provide. When the economy picked up and more sales and service followed, many also first invested those funds back into the business, improving their dealership facilities and service centers.
It looks like those investments are paying off, as J.D. Power and Associates' latest Customer Service Index Study shows that overall consumer satisfaction with dealer service has increased to 797 (on a 1,000-point scale), up from 787 in 2012 and 29 points higher than the score in 2011. The study also finds that people are more satisfied with the service they get at dealerships compared to independent service providers, despite the much higher average out-of-pocket cost per visit ($118 vs. $44).
Note, however, that this study only looks at how people are treated by a dealer's service department during the first three years of ownership (the survey is based on responses from 91,000 owners and lessees of 2008 to 2012 model year vehicles), so we're talking about the experience had when bringing a car in for repair or maintenance work, most likely under warranty. In fact, maintenance work is increasing in share and accounted for 77 percent of service visits (up from 72 percent in 2012 and 63 percent in 2011). This helps explain why customer satisfaction has also risen, since a properly maintained car is one that's less likely to require a dealer visit for an unexpected repair.