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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.

Volvo readying stretched next-gen S80 in lieu of 7 Series rival?

The debate about what direction to take perennially struggling Volvo has been raging for years. Should the Swedish marque go upscale and try to chase other European luxury brands, or should it stick to its safety-minded knitting? Should it adopt flashy new styling and a more overt performance bent, or keep it Scandinavian clean and responsible? Chinese parent brand Geely apparently has designs on making Volvo a full-fledged BMW rival - particularly in its homeland - including pushing for a range-topping 7 Series competitor. However, Volvo execs have been repeatedly pushing back on the idea. In fact, it's understood that this philosophical crisis contributed mightily to the high-profile departure of Stefan Jacoby, the company's CEO until the middle of 2012 (Jacoby has since rebounded to head international operations for General Motors).
There doesn't seem like any middle path in this debate, but that apparently isn't going to stop Volvo from trying. According to a sprawling Reuters report, Volvo will placate Geely chairman Li Shufu with a stretched and lux'd up version of the next S80. Yet Li still isn't completely satisfied, and he's said to be pushing for "a plusher and bigger model he calls the S100" to rival cars like the Audi A8. For the moment, it is not clear if the larger S80-based model will be a global offering, or just another one of China's many home-market, long-wheelbase specials.
The question of future Volvo styling is up for debate as well. According to Reuters, "Insiders say Li is a big fan of the new styling that design chief Thomas Ingenlath has brought to Volvo" (The latest example, the Concept Coupe from this week's Frankfurt Motor Show, is shown above.) Yet there are those who worry whether the company's new styling strategy is showy enough to appeal to China's wealthy. Chairman Li would still like to see a range-topping sedan for "show-off people," but Volvo's management doesn't want to go down that road. Clearly, this won't be the last we hear about the company's existential boardroom battles.

These are the top luxury cars bought by people entering the segment for the first time

Let's say you just got a big promotion at work or the kids are moving out of the house, and you finally have some extra money. You decide to blow it all at once and treat yourself by upgrading your ride. Naturally, you look to a luxury automaker. What do you choose?
Models like the Audi A3 and Mercedes-Benz CLA-Class may be tailor-made to introduce buyers to the premium segment, but a new study finds that they don't garner the highest rates of non-luxury customer conquests. It turns out that a Volvo leads among folks moving up to a premium brand, and it isn't even one that's made anymore, at that.
A recent study by Polk and IHS Automotive looked at what models had the highest rates of buyers upgrading from a non-luxury segment. The information comes from its new vehicle registration data through April 2014. All ten top models boasted conquest rates of over 50 percent, but the Volvo C70 led the field with 68.01 percent of its customers coming from non-premium brands.