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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.

Car subscription services: A slow, expensive start — but the potential is huge

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they'll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group. Cable TV started out cheap with basic offerings, and then got expensive. The auto industry's subscription offerings are new, but they're starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers' lineup. Subscription services also point the way toward an ownership-free auto experience, and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to "get" them. Lincoln's subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled. Last month, Cadillac announced it would " temporarily pause" its $1,800-per-month Book subscription service for "adjustments" as of December 1. According to the Wall Street Journal, "Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company." The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they'll find that sweet spot, but they're not there yet. Jack Nerad, former executive editorial director at Kelley Blue Book and author of " The Complete Idiot's Guide to Buying or Leasing a Car," points out that "A lot of people expected that subscriptions would be very valuable for people who wanted inexpensive transportation, but the reality is quite the opposite. Subscriptions are offering more choices for the wealthy.

2021 Mercedes-Maybach GLS 600 is business class without the jet lag

Mercedes-AMG demonstrated how sporty a mammoth SUV can be by unveiling the 2021 GLS 63 S at the 2019 Los Angeles Auto Show. Across the Pacific, at the Guangzhou auto show in China, Mercedes-Maybach revealed another GLS variant that puts an unabashed focus on comfort. The 2021 GLS 600 ends years of rumors by finally taking Maybach into the SUV segment. (If you don't count the limited-edition G 650 Landaulet). It's not a standalone model developed from the ground up, and it's in no way related to the electric Vision Mercedes-Maybach Ultimate Luxury concept introduced in 2018. It's a second-generation GLS dressed up in a Hugo Boss suit. Stylists spruced up the front end with Maybach's chromed waterfall grille and mesh inserts in the lower part of the bumper. An abundance of chrome trim (including big slabs of it in on the B-pillars) and Maybach emblems on the D-pillars further set the SUV apart from its non-Maybach-badged sibling. Buyers can order a two-tone paint job at an extra cost. 6.8-foot-long running boards automatically extend from under the body about a second after one of the passengers opens a door. Designers took advantage of the cavernous interior to replace the second- and third-row seats with a pair of business class-like chairs that offer heated, ventilated, massaging and reclining functions. Maybach developed the GLS with chauffeur-driven buyers in mind, so the passengers traveling in the back benefit from their own infotainment system with wireless headphones, folding tablets, wireless device chargers, plus heated and cooled cupholders. Alternatively, buyers can order the GLS as a five-seater with a three-person rear bench. The GLS 600 receives the twin-turbocharged, 4.0-liter V8 engine that's omnipresent in the Mercedes range. It delivers 550 horsepower from 6,000 to 6,500 rpm and 538 pound-feet of torque between 2,500 and 5,000 rpm in this application, and it spins the four wheels via a nine-speed automatic transmission and 4Matic all-wheel drive. Mercedes pegs its zero-to-60-mph time at 4.8 seconds. The standard 48-volt mild hybrid system briefly gives the GLS 600 an additional 21 horsepower and 184 pound-feet of torque. It also sends the kinetic energy it recuperates to the battery pack while braking or coasting, and powers a technology named E-Active Body Control which scans the road ahead and adjusts the suspension as needed if it detects a pothole, a bump or another obstacle.